Letting Agency

TVPIPE

Agent has deducted 12 months commission immediately. (this covers from Oct 2010-end Sept 2011 - thus over two tax periods)

For the tax return, do I divide the commission so that even though the commission was taken in tax year 2010-11 the tax return should only cover the 6 months to the end of the tax year. The remainder of the commission would then be reported in 2011/12

This also applies to the actual rent - I received it as a lump sum (corporate) but this pays for 12 months which straddle two tax years. How do I report this..... all in the year it was received or proportionate to the months it applies (and thus the applicable tax year)?

jamie11

Best thing I believe would be to report it as paid from the date you either spent it or received it, so all this year. It will even itself out next year. I'm not an accountant though so ask your accountant what he normally does.