Projects & tracking

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1. MTD for IT - Tracking Options for General Expenses

   We have several clients with many tracking categories, meaning that eg the monthly Xero subscription we have to split 6 ways, which is very tedious and time consuming. Could we use a general category which would automatically split equally between the amount of other tracking categories

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   1 comment  ·  delete…  ·  Admin →
   Existing functionality  ·  AdminDavina Roper (Admin, Xero) responded

   Thanks for sharing this idea. For jointly owned property, Xero currently supports allocating a tracking option by ownership percentage. This means you can record the full expense in the Xero ledger and have Xero include only your 50% share in the MTD for Income Tax quarterly update, including the Other expenses tax category.

   How to set this up:

   1. Make sure the relevant expense transactions are assigned to the correct MTD tracking category and tracking option.
   2. Go to Tax and select MTD for Income Tax.
   3. Open Settings, then select Tracking and allocation.
   4. Under Transaction allocations, select Allocate to tracking options.
   5. Enter 50% for the tracking option representing the jointly owned property.
   6. Select Save.
   7. Return to the relevant quarterly update and open Income and expenses to review the updated totals before sending the update to HMRC.

   The 50% allocation is applied when Xero calculates the MTD tax-category totals. It does not split or amend the original transaction in the Xero ledger. The expense account must also be mapped to the appropriate MTD report code so it is included in the relevant tax category.

   This allocation is intended for jointly owned property. If ownership changes during the tax year, the quarterly totals may need to be reviewed and adjusted at year end.

   For more information, see Connect multiple businesses for MTD for IT in Xero and Set up MTD for Income Tax in Xero.😊

   Thanks for sharing this idea. For jointly owned property, Xero currently supports allocating a tracking option by ownership percentage. This means you can record the full expense in the Xero ledger and have Xero include only your 50% share in the MTD for Income Tax quarterly update, including the Other expenses tax category.

   How to set this up:

   1. Make sure the relevant expense transactions are assigned to the correct MTD tracking category and tracking option.
   2. Go to Tax and select MTD for Income Tax.
   3. Open Settings, then select Tracking and allocation.
   4. Under Transaction allocations, select Allocate to tracking options.
   5. Enter 50% for the tracking option representing the jointly owned property.
   6. Select Save.
   7. Return to the relevant quarterly update and open Income and expenses to review the updated totals before sending the update to HMRC.

   The 50% allocation is applied when Xero calculates the MTD tax-category totals. It does not split… more