If you run a UK property business or manage furnished holiday lettings, sorting your transactions into the right categories keeps your accounts accurate and your tax estimates correct. The app automatically organises your income and expenses into five core areas to match HMRC requirements. This guide outlines every available property category so you can confidently manage your day-to-day bookkeeping directly in the app. đ
Let's break down the categories by their accounting type.
Income
Income tracks the rental revenue and other lump sums your property business receives:
Rent: The total rent and any other regular income you receive from your properties.
Rent a room income: Rental income you receive specifically under the official government Rent a Room scheme.
Premiums received: Lump sums or premiums you receive for granting a lease to a tenant. Note: This applies to standard UK property accounts.
Reverse premiums: Any payments or benefits you receive as an incentive to take an interest in a property. Note: This applies to standard UK property accounts.
Other property income: Extra revenue streams from your property, such as ground rents, waste-tipping fees, or income from a fixed caravan or houseboat. Note: This applies to standard UK property accounts.
Expenses
Expenses are your day-to-day property running costs. Note: Certain categories do not qualify for tax relief from HMRC, meaning they cannot be used to lower your tax bill.
Cost of services: The cost of any services you provide to tenants, including wages for site staff.
Equipment depreciation: The drop in value of items like computers or phones used to run your business. Note: This expense is not eligible for tax relief.
Financial charges: Fees from financial providers, including bank charges, your monthly account plan, and transaction fees.
Other costs: A fallback category to use for allowable property expenses only if you cannot find a more precise match.
Premises costs: General running costs for your properties, such as rent, business rates, or utilities.
Private use: An adjustment category used to mark the personal use proportion of a business expense.
Professional fees: Fees for expert services, such as accountants, solicitors, mortgage brokers, or filing fees paid to Companies House.
Rent a room relief: The specific amount of Rent-a-Room tax relief you are claiming for the period.
Repairs: General maintenance, fixes, and renewals for your business property or equipment.
Residential financial cost: The residential financial costs, such as mortgage interest, that can be deducted from your rental income for tax relief. Note: This applies to standard UK property accounts.
Restricted residential financial cost: The amount of financial cost relief brought forward from previous years. Note: This applies to standard UK property accounts.
Tax cost: The general cost of your business taxes.
Travel: Business travel costs, including fuel, train tickets, taxis, or flights.
Uncategorised: A temporary slot for unrecognized transactions. Try to update these quickly to ensure your financial reports and tax estimates stay completely accurate.
Assets
Assets are things of value that your business owns, or money that is legally owed to you:
Equipment: The cost of buying business equipment, such as a computer or mobile device.
Equipment accumulated depreciation: The total drop in your equipment's value since your business first bought it.
Trade debtors: The total value of sales invoices you have sent out that have not yet been paid by your customers.
Cash: The total funds currently held in your business account balance.
Petty cash: Physical cash your business keeps on hand for small everyday property expenses.
Prepayments: Things you have paid for in advance before actually receiving the service. Once you receive the product or service, you or your accountant should update this category.
Accrued income: Income that your business has fully earned but has not yet officially received.
Personal use: Goods or services consumed for personal use rather than for running your property business.
Suspense: A temporary storage category used when you are unsure where a transaction should be recorded.
Liabilities
Liabilities represent money that your property business currently owes to other people or organisations:
Trade creditors: Unpaid supplier invoices or utility bills you have received but haven't settled yet.
Accruals: The value of services or products you have used but have not yet been officially billed for.
Income in advance: Money customers or tenants have paid you before you have actually provided the underlying accommodation or service.
VAT: The amount of Value Added Tax your business owes to HMRC, or outstanding VAT amounts you are reclaiming from them.
Tax liability: The final amount your business owes to HMRC for tax and National Insurance.
Loan: Money your business borrows, such as a business loan or mortgage from a bank.
Equity
Equity represents your personal financial stake and value within the business:
My investment: Money that you have personally invested into your property business.
Pay me: Money you draw directly from the business to pay to yourself.
Retained earnings: The cumulative profit or loss your business has made since the day it started trading.
Quick tips for managing categories
If you ever want to check what a category means while sorting your transactions, simply tap the info icon (âšī¸) next to it in the app's category picker. đą
If you still cannot find the exact option you need for your property setup, you can share your feedback and let us know what is missing by completing our quick suggestions form here. đ