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Sam, Accountant
Category: Tax
Satisfied Customers: 14153
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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hmrc tax enquiry  I have Incoming rent that shows on my

Customer Question

hmrc tax enquiry 

I have Incoming rent that shows on my bank statement that I can not allocate to houses I have just declared it as unallocated rent in  a suspense account as it unlikely that I will be able to allocate it. ( normally tenants paying by cash small arrears payments. Totalling approx £1600 in the relevant year. 

Is this going to cause a problem - I was under the impression that as long as it was declared as taxable income there would not be a problem. Total rentable income in that year was in excess of £500,000.

I have mainly used income and expenditure proof as my bank statement as this shows the relevant lender taking funds and most tenants who 
Pay regular monthly amounts clearly with only a few DSS tenants topping up rent by cash payments into the account. ( which are the one causing problems as whilst they put their name as reference on the paying in slip the bank just notes it as cash in and the time and date) 

Submitted: 4 years ago.
Category: Tax
Expert:  Sam replied 4 years ago.



Thanks for your question


I assume you are able to reconcile the amounts, as I would expect that you know which tenants are in arrears and mark off the payment they have made to enable you to

1) Establish the amount outstanding still with each tenants arrears

2) Keep the tenants informed of what is still owed at the end of each year.


Do you not keep these sorts of records? Despite the fact that the bank only records them as cash deposits.


If not, then you need to ask the bank to identify each cash payment, where it came from so you can create accurate income records.