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Posted Mon, 18 Jul 2022 06:49:57 GMT by ymching
The tenants had paid one year (from July 2021 to July 2022) rent in advance in July 2021. The income is falling in the two tax assessment yours, ie 2021/2022 and 2022/2023. Should I include all rental income in the year of 2021/2022? or should I split the total rental into 12 months and charge them in 2021/2022 and 2022/2023 respectively? Thanks.
Posted Tue, 19 Jul 2022 13:38:39 GMT by HMRC Admin 17

This depends on whether you are using cash basis or traditional accounting.

Refer to guidance at :

UK property notes   .

Thank you.
Posted Thu, 21 Jul 2022 01:37:27 GMT by WC
Hi HMRC, based on the SA105 notes, please advise the correctness of what I am understanding by the following example. e.g. If tenant paid me £24000 as the the rent from 1 July 2021 to 30 June 2022: For traditional accounting, I should input £24000 in the SA105 BOX20 For cash basis, I should input the rent during 06/04/2021 - 05/04/2022 (10 months in this example), that is £20000 in the SA105 BOX20. Am I right?
Posted Thu, 21 Jul 2022 16:28:41 GMT by HMRC Admin 20

From 2017-18, the cash basis is the default method of reporting profits or losses of a property business for most individuals with cash receipts for the tax year of £150,000 or less. 
The profit or loss to be reported under the cash basis is found by calculating: 
The total amount of receipts that the business received during the tax year, less the total amount of expenses that the business paid during the tax year.
In simple terms you only need to show money when it comes in or goes out. There is no need to account for debtors or creditors.
If you believe it is more appropriate to use traditional accounting, e.g. when the income is earned and when the expenses are incurred, you must make an election on your tax return.
For more information, please see
PIM1090 - Cash basis for landlords

Thank you.

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