Follow these steps to configure your TELUS Farm Accounting company for MTD for Income Tax.
Note: If you are creating a new Sole Trader company, these options are enabled by default. For existing companies, follow the steps below.
Step 1: Update Company Settings
Go to Settings > Company Settings to input your required HMRC identifiers.
Business Details Tab: Enter the individual’s National Insurance Number (NINO) without spaces.
Financial Settings Tab: There are 3 MTD IT options that can be enabled; tick the submission types applicable to you:
Trading (Sole Trader)
UK Property
Foreign Property
Define Your Basis & Dates: For each enabled type, select the settings that match your HMRC registration:
Calculation Basis: Choose 'Accruals' or 'Cash'.
Report Periods: Select 'Calendar' (1 April – 30 June etc) or 'Standard' (6 April – 5 July etc).
Save Changes: Scroll to the bottom and click ‘Update Company’.
Step 2: Configure Your Categories
Mapping your categories ensures your data flows into the correct boxes on your returns.
Note: You only need to configure Profit and Loss (Income and Expense) categories.
Go to Accounting > Categories. You will see three new MTD columns: Submission Type, Tax Category, and Disallowable Expense.
Review Default Mapping: Categories created via our ‘Farming Activities’ setup are pre-mapped to Trading by default. Please review these to ensure they meet your specific requirements.
Manual Configuration: For any self-created categories, or for Property categories, click the Yellow Pencil Icon to edit:
MTD Submission: Choose the return type (e.g., Trading).
MTD Tax Category: Select the specific HMRC return section.
Disallowable Expenses (Trading Only): Ticking this check box will set all data entry allocated to this category as a disallowable expense.
You may need to setup additional categories if needing to allocate both allowable and disallowable expenses.
Need help with mapping? You can export your category list to Excel from this screen to share with your accountant, or invite them as a user in Company Settings > Users.
Excel export:
Step 3: Foreign Property Setup (If Applicable)
If you submit Foreign Property returns, HMRC requires these to be tracked individually. We use the Enterprises feature to manage this.
Enable Enterprises: Ensure 'Enterprises' is turned on in your Company Settings.
Create Property Profiles: Go to Tools > Enterprises > New Enterprise.
Link to MTD: * Give the property a name.
Tick: “Is this a Foreign Property for MTD IT Foreign Property returns?”
Enter the specific Country Code.
Data Entry: When recording transactions, ensure you allocate them to the correct Enterprise so they are included in the right return.
Step 4: Quarterly Submissions
Once your setup is complete and your data is entered, TELUS Farm Accounting enables you to submit your four quarterly returns directly to HMRC.
Please note: You will still need your accountant or a secondary software for your "End of Period Statement" (EOPS) and Final Declaration.