Is BTL profit/loss done on a cash accountancy basis? Is BTL profit/loss done on a cash accountancy basis?
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  1. #1

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    d000hg's Avatar
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    Default Is BTL profit/loss done on a cash accountancy basis?

    I have some management fees for a flat I own, that have been mounting up - since 1.1.2018(!) - and I only just got a bill for 2018 thru 2019. The bill is itemised in 6-month chunks.

    If I just pay this off, will that just count as a service charge for this tax year? I have only received a single invoice dated september 2019 though each 6 months is a separate line item.
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  2. #2

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    You are over thinking it.

    The bill is for September 2019 - you pay it (if you aren't going to argue it) and attach it to this year's accounts.
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    Accruals basis if in a Ltd co.

    I have a good IT/Property accountant if you need one... sounds like you do

  4. #4

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    So cash basis for personal BTL, bills apply when they are paid not when they are issued/received, nice and straightforward.

    IIRC with your Ltd you can choose which method i.e. you can take a dividend against invoices that haven't actually been paid if you really want to? Which is a fun topic for a new company owner to get their head around
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    Urine is quite nourishing

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