Agency Fees Claimed

[landlordman]

Probably an easy question but I need clarification

Letting Agency charged their fees for the whole of the tenancy (1 year) at one go and deducted accordingly - the time period crosses over two tax years - do I report it in the year I received it or do I apply the % the amount per the months it applies to in one tax year and the rest in the other tax year?

This also applies to the rent - I was fortunate to receive the rent in one lump sum for the whole tenancy - so same question as above - do I declare it in the tax year I received it?

Sorry if this sounds a stupid q

[Mortitia]

HI,

No, it's not a stupid question. I am no tax expert but from my own records I note that in a similar case the monies were declared in the year I received them/paid them.

In my case it was 12 months.

Hope that helps,

Mortitia

[Richlist]

The correct way of accounting for this is to apportion the income & expenditure partly in tax year 1 and the balance in tax year 2......its called the 'accrurals' method as opposed to the other system which is called the 'cash' method.

I believe HMRC allow the cash method to be used only where rental income is below £15000pa