Correct tax year for rent declaration?


I have my first tenanacy through openrent starting om 27th of March. Rent now says the rent will be paid to me 10 days after the move in date which is 6th of April.

Wondering in which tax year I should declare the first rent. The current 2020-2021 or the next one 2021-2022?


It would depend on the accounting basis you are using. Assuming you are not doing it via a company then cash basis is the default and your tax is due when you actually receive the money so would be due in 21/22 tax year. If you use the accrual accounting basis it would be due in 20/21 as that is based on when the income is earned, even if it hasn’t been received yet.

I always record mine in the tax year it goes into the bank

Why are you receiving it 10 days later?
Why don’t you have it paid to your directly?
Have you not seen posts that state open rent are charging for rent collection?

If you use rent now, the first rent is collected for free by Openrent with the deposit.

Technically, if you are using the accruals basis, you would include the rent from 27 March to 5 April in 20-21 and the rest in 21-22. Cash accounting and it depends when it lands in your account.

thanks all for your responses