Author Message
HMRC ADMIN 2
Subject: Tenant Deposits and Self Assessment 25/09/2017 13:37:07
Hello Iren,

Hope the previous contributions have made this issue clearer,we have developed a number of products to support those who receive income from property but continue to post if you feel the need, thanks to Accounting Equations Ltd & Anonymous for their contribution here, its appreciated
HMRC ADMIN 18
Subject: Re:Tenant Deposits and Self Assessment 25/09/2017 12:10:11
Hi
Deposits paid by tenants should be excluded from the receipts of the rental business. When the tenant moves in and pays the deposit the landlord has no right to the deposit income and only becomes entitled to some or all of the deposit if at the end of the tenancy some of the deposit has to be retained to cover any damages/dilapidations.

Please refer to the following link under the heading “Deposits/Bonds taken from tenants. https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim1051
Accounting Equations Ltd
Subject: Tenant Deposits and Self Assessment 22/09/2017 12:52:34
You do not need to show a deposit as income on your self assessment tax return. The deposit is a liability (balance sheet entry) as this will be returned to the tenant eventually.
Anonymous
Subject: Tenant Deposits and Self Assessment 22/09/2017 12:40:23
You do not need to show a deposit as income on your self assessment tax return. The deposit is a liability (balance sheet entry) as this will be returned to the tenant eventually.
iren
Subject: Tenant Deposits and Self Assessment 22/09/2017 09:37:52
Hello,

I wanted to clarify how I should treat deposit money that I received from my tenants:

Do I need to declare the tenants deposit in my self assessment if I keep the deposit money in DPS (Deposit Protection Service)?
if, yes - how should I classify this money in self assessment?

Thanks!