My letting agent collects my tenant's rent on the 11th of the month.
They then take their fee (8%) at that time of the whole amount. Then they only pay out from the 11th of the month until the end of the month. (i.e. their "statement" period is from the 1st-last of the month).
The remaining amount is carried over to the next month and paid out with the first "half" (ish) of the next month's rent.
My question is how can I account for this in my tax return this year?
The tax return runs until the 5th April, so on the 5th April the situation will be:
- My letting agent took the full rent for 11th March-10th April
- I received (in my bank account) part of the rent (for 11th March-31st March)
How should I show this? Should I show this as an income of the partial rent or the full rent?
If I show it as income of the partial rent should I also split the letting agent's fee as well? As they take this before splitting the rent, so technically if I haven't received part of the rent I also haven't paid the letting agent's fee for that period either.
Thanks in advance