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Submit income based on property ownership share

Created on  | Last modified on 

Summary

Use Sage Sole Trader to submit your share of UK Property income and expenses to HMRC. Sage applies your ownership percentage when it prepares your quarterly update.

Description

If you share ownership of one or more rental properties, you must report only your share of the income and expenses to HMRC.

In Sage Sole Trader, you record the full income and expense amounts for the property business. Sage then applies your ownership percentage when it prepares your quarterly update.

When setting up MTD for Income Tax, Sage asks if you’re the sole owner of all properties in your UK property business. If you select No, enter your ownership share percentage.

How Sage applies your ownership percentage

When you enter an ownership percentage, Sage:

  • Reduces rental income to your share
  • Reduces allowable expenses to your share
  • Uses the adjusted totals in your quarterly update

EXAMPLE:

If you own 50% of a property, Sage submits 50% of the recorded income and expenses. Record the full income and expenses in Sage. Sage applies the ownership percentage at submission.

One ownership percentage per company

Sage applies one ownership percentage across all rental properties within the same Sage Sole Trader company.

If all properties have the same ownership split, you can use one company.

If ownership percentages differ between properties, you can't submit them correctly from the same company.

In that case, you must:

  • Set up separate income sources with HMRC
  • Create separate Sage Sole Trader or Sage Accounting companies 
  • Set the correct ownership percentage in each
  • Submit each income source separately

Before you submit

Before submitting your quarterly update, confirm:

  • Your ownership percentage is correct
  • Your rental income and expenses are complete
  • You’ve selected the correct income source during MTD setup

Submitting the wrong ownership percentage can result in incorrect reporting to HMRC.