If you are a Landlord you can make your accounting and tax simpler by using the cash basis – but what is the cash basis? Our handy guide will lead you through this to see whether this will help you prepare your tax return for your rental properties.

This month’s Active Practice will guide you through:

  •    The difference between Cash Basis and Accruals Basis
  •    Eligibility
  •    Test One – The property business
  •    Test Two – Receipts on a cash basis are more than £150,000
  •    Test Three – Property is jointly owned
  •    Test Four – Business renovation
  •    Test Five – None apply but landlord has applied for an accruals basis
  •    More than one Business
  •    Capital Expenditure
  •    Cars
  •    Replacement of domestic items
  •    Interest relief
  •    Entering and leaving cash basis
  •    Accruals basis – should you elect?
  •    Fixed rate deduction for mileage
  •    Getting to grips with the charges


If you want to know more around Cash Basis for Landlords, please take a look at our latest Active Practice. You can download it here

JDA – Active Practice – 2018-03 – Cash Basis for Landlords


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Any questions?

If you’d like a meeting or a Skype call to discuss this, please get in touch with your favourite Liverpool accountant

  • You can ring us on 0151 380 8080
  • You can email us at gr****@jo******************.uk