I’ve hijacked a well used phrase known to all Trekkies but it is exactly apposite because we and by we I mean Accountants all know what the cash basis means.
Income and Expenses are calculated on an as paid and received basis not on an Accruals basis and by default income is received either in cash or banked and expenses are when they are paid not when they are incurred.
So far so good. Yet when it comes down to the cash basis for rental income the date of receipt is not when the landlord receives the rent but for property managed by an agent it becomes the date the agent receives the money not when they reimburse the funds net of their fees and other out of pocket expenses.
This of course it not a mega problem for annual accounts purposes but with the spectre of quarterly reporting under MTD we will find that we are dependent on receiving up to date information from our clients agents sooner rather than later. Which knowing some of the aggravation I already get from agencies that are handling my clients is something I’m not looking forward to in any shape size or form.
I know the legalities behind this but can’t we just decide that for landlords cash basis means what it should mean.
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