I have a Self Assessment to fill. In the section where they ask about Traditional Accounting or Cash Basis Which one shall I choose.
I have one Studio flat BTL for which I receive rent and expenses earning below £150k of course. I also have a job.
1) What option to choose here?
2) What factors consider for my choice?
3) Whether it is a matter of legal requirement to choose the right one?
I am confused because I have heard/read that if one accept advance rent payment that also goes on to the next financial year then under cash basis you cant spread it to next tax year to lower the tax liability. In tis case am I ok to choose traditional accounting every year.
If there are any other factors tips I need to be aware of please help me choose.
I have one Studio flat BTL for which I receive rent and expenses earning below £150k of course. I also have a job.
1) What option to choose here?
2) What factors consider for my choice?
3) Whether it is a matter of legal requirement to choose the right one?
I am confused because I have heard/read that if one accept advance rent payment that also goes on to the next financial year then under cash basis you cant spread it to next tax year to lower the tax liability. In tis case am I ok to choose traditional accounting every year.
If there are any other factors tips I need to be aware of please help me choose.
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