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Set up a client with self-employment and property income

Shannon Brady
  • Updated

Each BrightBooks business can only be set to one MTD income type, so add the client as a separate business for each income source and submit each quarterly update from its own business.

 

Steps

  1. Keep the existing business for the self-employment income.
  2. Create a new business for the property income, using the Sole Trader entity type.
  3. In the new business, go to Settings (the cog, top right) → MTD ITSA Setup and select UK Property (Landlord) or Foreign Property (Landlord) as the Business Type.
  4. Connect the new business to HMRC with the same National Insurance number. See Connect BrightBooks to HMRC for Making Tax Digital for Income Tax.
  5. Add each business’s figures separately – each needs its own import if you use the MTD template.
  6. Submit the quarterly update from General Ledger → MTD ITSA in each business.
  7. Check both updates show Fulfilled. Agents can select View Individual Calculation on HMRC to confirm HMRC has both.

 

Two sole trades

HMRC treats each trade as a separate income source. Set up each trade as its own business. If you’re unsure how HMRC treats the income, ask HMRC or your accountant.

 

Known errors and how to fix them

Find the message you’re seeing:

  • The MTD Tax ID or start date stays greyed out in the second business
  • HMRC says income is missing from a quarterly update

 

The MTD Tax ID or start date stays greyed out in the second business

What you’ll see

  • MTD ITSA Setup in the new business shows a blank MTD Tax ID and greyed-out Business Start Date.

Why it happens

The new business hasn’t been authorised with HMRC yet, or HMRC doesn’t yet hold the property income source.

How to fix it

  1. Connect the new business to HMRC – see Connect BrightBooks to HMRC for Making Tax Digital for Income Tax.
  2. Check the property income source is on HMRC’s record for the taxpayer.
  3. Save the National Insurance number again.

Still not working? Contact us if: it stays greyed out after you reconnect.

 

HMRC says income is missing from a quarterly update

What you’ll see

  • HMRC tells you or your client that an income source wasn’t included.

Why it happens

Each income source needs its own update from its own business.

How to fix it

  1. Check each business has its own quarterly update with the status Fulfilled.
  2. Agents: select View Individual Calculation on HMRC to check which income sources HMRC holds.

Still not working? Contact us if: both updates show Fulfilled but HMRC still says income is missing.

 

Still need help?

Contact our support team. Send us both business names and a screenshot.

 

Find out more on GOV.UK