Contra (in and out) transactions in untied

What is a contra transaction?

A contra transaction is a simple way to record money in and money out for the same payment.

It can be used when you’re paid net of deductions – where fees or charges have already been taken before the money reaches your bank account.

We sometimes call these in-and-out transactions. They usually don’t change your taxable profit, but they do count towards your record-keeping requirements.

Common examples

• Payment providers like Stripe, PayPal or Sumup deducting fees before transferring money to you
• Platforms like Uber, Airbnb or Deliveroo taking commission before paying you
• Letting agents deducting fees or maintenance costs

Instead of creating two transactions manually, untied lets you create both sides in one step.

How contra transactions work in untied

When you create a contra transaction, untied automatically creates:

• One money in transaction (to gross up the income for the amount deducted)
• One money out transaction (the expense)

Both transactions:

• Are for the same amount

  Are labelled “contra” in the description

  Use different tax tags, for example:

  • Money in: Business income or Property income
  • Money out: Business expense or Property expense

Example: letting agent deducts fees

Suppose:

• Rent paid by the tenant: £1,000
• Letting agent deducts: £100 fee
• You receive: £900

In untied you would:

• Tag the £900 transaction in your bank account as Property income
• Create a contra transaction for £100, tagged as:
  • Money in: Property income
  • Money out: Property expenses

This shows the full rent and the agent’s fee clearly.

How to create a contra transaction (browser)

1. Add a new manual transaction:

   In Type, choose Contra

   Enter:

   • A description (for example: “Letting agent fee”)
   • The amount
   • A money in tax tag
   • A money out tax tag

2. Save the transaction

   untied will create two mirrored transactions:

• One money in
• One money out

Important notes

• A contra transaction allows:
  • One money in tag
  • One money out tag
• If there is more than one deduction (for example, agent fees and maintenance), create separate contra transactions for each deduction
• Contra transactions:
  • Are created together
  • Do not stay linked
  • Can be edited or deleted separately later
• All contra transactions include “contra” in the description to make them easy to spot
• If you have joint property (for example), the contra should be for your share of the adjustment.

When should I use a contra transaction?

Use a contra transaction when:

• You are paid net of deductions

  You want to clearly show:

  • Gross income
  • Related expenses

If the income and expense aren’t directly related, record them as separate standard transactions instead.#

Alternatives to contra transactions

You may instead want to add additional lines to the original transaction.