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For the purposes of MTD, HMRC has split the UK property income into two types; furnished holiday let and other property.
If an individual has a UK property business, the HMRC requires data in the form of update periods, which must be sent to them in intervals of no longer than 3 months. (These update periods can be submitted more frequently if desired).
Where a user has both FHL property and other property, the user will be required to make separate submissions for each property type.
Adjustments and Allowances is an optional submission and is not required by the HMRC in order to meet the individuals yearly tax commitments. If individual does in fact have data within this submission it can be submitted at any point within the year. However, it is advisable to submit with the final update period.
Once all quarterly obligation for the year have been met, an end of period statement must be submitted in order to finalise the property details for the year. A single EOPS submission is made for BOTH Property types. The ‘Confirm and Submit’ option within IRIS will be disabled until all the quarterly obligations are shown as ‘Obligations met’ within the obligation table.
Periods are the time allocated snapshots of a client’s accounting year that are sent to HMRC. Sending a client’s information in this way means HMRC receives a more up to date understanding of a client’s tax position and the client receives a more accurate and up to date HMRC calculation.
The user can set the frequency of a client’s update periods, as long as they meet the mandated obligation windows that HMRC set.
These tables list the values that can be sent over to the HMRC for an update period:
Furnished Holiday Let
| Income | Expenses |
| Rental Income
|
Premises running costs
Repairs and maintenance Financial costs Cost of services Other |
Other Property
| Income | Expenses |
| Rental income
Tax deducted Premium of grant Reverse premiums |
Premises running costs
Repairs and maintenance Financial costsProfessional fees Cost of services Other |
The adjustments and allowances submission reflects the year’s adjustments and allowances for each UK property. This submission, unlike that of the update periods, only needs to be submitted once for the year.
This adjustments and allowances submission does not have any impact
on the obligations set for the UK property business.
These tables list the information that can currently be submitted to HMRC:
Furnished Holiday Let
| Profit | Adjustments | Allowances |
| Income
Expenses |
Loss brought forward
Private use adjustment Balancing charge |
Annual investment allowance Other capital allowance |
Other Property
| Profit | Adjustments | Allowances |
| Income
|
Loss brought forward
Balancing charge Private use adjustment |
Annual investment allowance
Other capital allowance Cost of replacing domestic items Zero emission goods vehicle allowance All other capital allowances
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Sending an EOPS, or an End of Period Statement, represent the user’s final act and agreement with all data they have previously sent to HMRC for an individual instance.
A user can review that data in the form of the small micro computation
on this screen and, when they are happy this is all correct, click ‘Confirm and Submit’ to confirm they
agree with the disclaimer provided by HMRC.
This table will display a calculation of all figures entered in Personal Tax for this particular income type instance and represents a smaller version of the tax calculation that can be run within Personal Tax.
This table displays the obligations periods that HMRC set and require to be fulfilled before a user can send their End of Period Statement (EOPS).
The sidebar will show all of the periods for that selected income type
instance. Clicking any of these will function similarly to the table above
and take the user through to a new page displaying values relating to
that update period.
Print - this will give the user print options for that specific update period.
Finalise - this will change the status of this period to In Progress, change the button to ‘Reset Status’ and show a copy of this period in Current Submissions.
Submit - this will send the selected period directly to HMRC, change the current status to ‘Submitted’ and a copy of the period will then display in the Previous Submissions section
Reset Status - this will change the period status back to In Progress, change this button back to ‘Finalise’ and remove the copy from Current Submissions.