What the estimate counts, and why it needs to know about income outside property.
Open Finance and scroll to Tax estimate. It is a running estimate of what you will owe, updated as you record rent and costs, so you are not guessing come January.
The Making Tax Digital strip along the foot of the personal card is explained in Making Tax Digital.
The estimate uses what Abodient can see, which is your recorded rent and costs. It cannot see your salary or other income, and your first £12,570 is tax-free. So the card asks first: Tell us your income outside property and we'll work out what you owe. Click Add it →, enter a rough figure for the year and click Save. If the rent is your only income, enter 0.
Until you answer, the card shows no tax figure. Income, costs and profit still show. A jointly owned property shows only your share of the tax, and a Joint ownership badge says so.
The fuller your records, the closer the estimate.
A property held through a company gets a Tax estimate · Corporation Tax card instead. It shows Corporation Tax owed and Set aside / mo.
The card is an estimate for the tax year, 6 April to 5 April, like your personal figures. The company's own return covers its accounting year, so the two can differ.
If you own property through more than one company, those companies share the Corporation Tax limits. The £50,000 and £250,000 limits are divided equally, so two companies get £25,000 and £125,000 each. The card tells you how many companies are sharing and what each limit comes to. A company that owns no property is not counted.
