Shira O.

Thank you for your reply. I am a bit confused. The first part of your reply confirmed that I could adopt traditional accounting. Adopting the accrual basis in traditional accounting, the rental income for each of the tax years 2022/23 and 2023/24 should be £200 and £1000 respectively. As neither of them have exceeded the threshold of £1000, I would not need to include any of them in any of the tax returns for tax year 2022/23 and 2023/24. Right? Thank you in advance for your clarification.

I understand that cash basis is the default basis for reporting interest income for self-assessment. Is it possible to opt to use the accrual basis as this could even out the interest income and better utilise the allowances available in each of the tax years 2022/23 and 2023/24? Thank you.

I started to rent out my car parking space at the end of February 2023. The total gross rental amount is £1200, £200 of which related to 2022/23 and £1000 related to 2023/24 if calculated on an accrual basis. However the whole amount was received upfront at the commencement of the tenancy at the end of February 2023. May I opt to adopt the accrual basis (no adjustment is needed because i have never earned any rental income before) such that the gross rental in each of the tax years would not exceed the threshold of £1000 and as such would not need to be reported in the self-assessment in any of 2022/23 and 2023/24?

I have a few short term fixed deposits each of which lied across the 2 tax year. In respect of each fixed deposit, should I report the total amount of the interest income in the tax year in which I opened the fixed deposit, or in the tax year in which it matured, or apportion the total amount of the interest income by the number of days in each tax year and report the respective amounts in the respective tax year? Thanks.

Your website says "you’re not eligible for the starting rate for savings if your other income is £17,570 or more." I do not have other income, however my total interest income alone has exceeded £17,570. Am I still eligible for the starting rate for savings? Thank you.