[Avatar]

Cash or Traditional Accounting

23/01/2019 13:49:33
Hi

My wife and I rent out one property jointly. Which method of accounting is most suitable in this case for us?

Thank you.
[Avatar]

Re:Cash or Traditional Accounting

23/01/2019 14:14:02
Hi,

Thanks for your question.

From the tax year 2017-18, the default method for the assessment of rental income is the cash basis.

This means that you would be assessable on the rental income received in the year less the expenses you have incurred in the year. You would each be assessable on one half of the income less one half of the expenditure incurred.

Further information can be found on our website under the following link:

Property Income Manual 1092

More general information about how to calculate your assessable profits at:

Income Tax when you let property: work out your rental income