Making Tax Digital (MTD) Income Tax
MTD returns
Enabling the MTD functionality allows the software to interact directly with HMRC for the submission of Self-Assessment returns. To authorise the software, you will need your HMRC user ID and password, along with the relevant taxpayer information.
Follow the steps below to enable MTD:
Go to 'MTD Tax Returns' section by navigating to the tax and accounts module and selecting the required individual client.
Click on the edit icon next to 'Taxpayer information' to enter or update the required details.
Click the "Enable MTD" button located below the Taxpayer information section.
Sign in to HMRC online services by entering your user ID and password in the sign-in window provided.
Once the authorisation is successful, a green tick badge will appear below the Taxpayer information, confirming that the user has been successfully authorised with HMRC.
Businesses
In the Business section, users can retrieve their business details directly from HMRC and sync their businesses for importing data from bookkeeping module.
To begin, click on the “Retrieve” button to fetch the businesses linked to the authorised taxpayer from HMRC. After clicking on “Retrieve” button, system will retrieve all the associated businesses. The list businesses will then be displayed along with their respective business ID, trading name, and business type, allowing users to review and confirm the details.
Users can also synchronise a business using the business ID in order to import relevant data from the bookkeeping module. To do this, click on the “Sync” button. After clicking sync, a dropdown menu will appear displaying the list of clients. Select the client you wish to synchronise and then click “Save” to complete the process.
Once the synchronisation is completed, the selected client will be linked with the corresponding business ID, enabling the system to import and align the relevant data from the bookkeeping module with the MTD Self-Assessment records.
Add MTD return
To add an MTD return, click on “+ MTD return” and select the relevant tax year. After selecting the tax year, choose the quarter for which you want to submit the return.
Next, click on the “+” icon to add the required MTD forms. The available forms include Self-employment, UK property, and Foreign property.
Self-employment form
Go to the Self-employment tab and click on “+ Self-employment” to add a new self-employment form. Then select the relevant business ID and business name from the dropdown menu. The dropdown will display the businesses that were previously retrieved in the business section, allowing you to select the appropriate business for the return.
There is also an option to add a consolidated form. If the user wishes to enter consolidated figures in the self-employment form, enable the 'Consolidated' toggle while adding the self-employment form. This allows the users to submit a summary of total income and expenses for a self-employed business. It combines all transactions into summarised figures and sends the consolidated data.
UK property form
Go to the UK property tab and click on “+ UK property” to add a new self-employment form. Then select the relevant business ID and business name from the dropdown menu. The dropdown will display the businesses that were previously retrieved in the business section, allowing you to select the appropriate business for the return.
There is also an option to add a consolidated form. If the user wishes to enter consolidated figures in the UK property form, enable the 'Consolidated' toggle while adding the self-employment form. This allows the user to submit consolidated figures instead of entering details for an individual business.
Foreign property form
Go to the UK property tab and click on “+ Foreign property” to add a new self-employment form. Then select the relevant business ID and business name from the dropdown menu. The dropdown will display the businesses that were previously retrieved in the business section, allowing you to select the appropriate business for the return.
There is also an option to add a consolidated form. If the user wishes to enter consolidated figures in the Foreign property form, enable the 'Consolidated' toggle while adding the self-employment form. This allows the user to submit consolidated figures instead of entering details for an individual business.
Ways to enter data in the Self-employment, UK property or Foreign property form
Manual data entry
To enter the data manually, click on the "pencil icon" and input the relevant amounts under the self-employment income and expenses sections. Under Income, you can enter values such as Turnover or other income, and under expenses, you can enter amounts for items such as cost of goods bought or premises running costs.
Once the self-employment income and expense amounts have been entered, the net profit figure will be automatically calculated by the system.
Import through csv file
To enter data using a CSV file, click on the three dots (⋮) and select the Import option. After selecting Import, download the CSV template provided by the system. Enter the relevant income and expense amounts in the respective fields within the template.
Once the required details have been added, upload the completed CSV file and click 'Save'. The values entered in the CSV file will automatically populate the corresponding income and expense fields in the self-employment or form.
Additionally, the system provides a box-wise view of the imported transaction data, categorised under income and expenses. This allows users to review the imported data and verify its accuracy before proceeding further.
Sync data from bookkeeping
To sync data from the bookkeeping module, first ensure that the business is synced in the businesses section using the relevant business ID. After syncing the business, add a self-employment or UK property form using the same business ID with which the business has been synchronised.
Next, click on the three dots (⋮) and select the Import option. After selecting Import, choose the bookkeeping option provided by the system and click on “Sync”.
Once the sync is completed, the transaction data recorded in the bookkeeping module for the selected quarter will be automatically populated into the corresponding income and expense fields in the self-employment or UK property form.
In addition, the system provides a box-wise display of the transaction data synced from bookkeeping, categorised under income and expenses. This allows users to review the synced data and verify its accuracy before proceeding further.
Three dots (⋮) menu
To submit Self-employment, UK property or Foreign property from, first fill the from by entering the required data through manually, csv import or bookkeeping syncing, then navigate to the three dots and click on "Submit". The form will be submitted.
User can retrieve the data after the submission of self-employment, UK property or Foreign property from that were submitted to HMRC. To do so, navigate to the three dots and click on “Retrieve” to retrieve the submitted data.
If a user needs to make any changes to a self-employment, UK property, or Foreign property form after it has been submitted, the system allows the form to be amended by creating a clone.
To create a clone, click on the three dots (⋮) and select the 'Clone' option. The system will generate a clone form containing all the data from the previously submitted form. Users can then make the necessary amendments and proceed with the updated submission.
If a user wishes to delete any Self-employment, UK property, or Foreign property form, they can do so by clicking on the three dots (⋮) and selecting the “Delete” option.
Note: Submitted forms cannot be deleted from the system.
Hope this is helpful.
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