self assessment - money withheld on account by agent

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    self assessment - money withheld on account by agent

    Hi

    My agent withholds (say) £200 on account to cover repairs etc so my monthly statement reads some thing like this:

    INCOME
    Monies withheld £ 200
    Rent £1000
    TOTAL INCOME £1200

    EXPENDITURE
    Management fees £ 100
    Repairs £ 100
    TOTAL EXPENDITURE £ 200

    BALANCE £1000

    RETAINED £ 200

    NET AMOUNT TO LANDLORD £ 800

    Should i account for the withheld money £200 as both income and expenditure every month or simply account for the gross rent less expenditure as the retained portion is held on account on my behalf? (I'm guessing the latter but it's my first self assessment)

    many thanks in advance

    Av

    PS - I did trawl the forum first, but sorry if this has been asked before

    #2
    You should account for the gross rent less the actual expenditure being the management fee and the repairs. The £200 hasn't been spent - it's just a float being held on your behalf so that the agent has the funds to deal with minor repairs etc. without delay, as and when they come up.

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