Which tax year should a given item be put into?

Gopes

Ladies and gents,
I hopefully have a couple of nice easy tax related questions for a Wednesday afternoon...

I own an overseas holiday property, which I let out for a fair chunk of the year (more than 70 days), on a short term let basis (usually periods of 1 week).

Lets say I have a booking for a stay during one tax year (e.g. 15/04/2011 - 22/04/2011), but receive the rent during the previous tax year (e.g. paid 15/03/2011).

Question 1: Under which tax year, should this rental be accounted for (2010-11 or 2011-12).

Similarly, lets say I have the property rented in one tax year (e.g. 15/03/2011 - 22/03/2011), but the cleaner only invoices me (and gets paid) in the following tax year (e.g. I pay him for the cleaning on 01/05/2011)

Question 2: Under which tax year should this expense be accounted for (2010-11, when the work was done, or 2011-12, when the work was paid for)?

If anyone could shed some light, that would be greatly appreciated - I have hunted around on the web, but not managed to find an answer...

Cheers
Gopes

le_loup

If you have a limited company, you would normally do accruals. That is, put the income and expenditure into the year that the let/service takes place. For a sole trader, it is usual and a lot easier to book the items when received/paid.

Pennywise

le_loup wrote: »

If you have a limited company, you would normally do accruals. That is, put the income and expenditure into the year that the let/service takes place. For a sole trader, it is usual and a lot easier to book the items when received/paid.

Maybe easier but wrong though HMRC often accept it if no material difference overall. Even sole traders have to compile accounts on the proper accruals basis, so it doesn't matter when the payments are made, it's the period they relate to that matters, so the OP has to adjust both the items mentioned. First take out the rent and then add in the cleaner, then the 10/11 is right.