How To Treat Deposit Deductions?

by **solange** on Mon Nov 28, 2011 11:41 am

Hi Guys

Hoping someone can help with this quick question.

Kept £110 back from tenants deposit to cover carpet cleaning. Never actually had this done, as new tenants moved in straightaway, and said they were happy as it was (don't think they wanted the disruption of carpet cleaning when moving in)

In effect this was profit (well that's a first

), until I get the carpet cleaning sone. Therefore how should I reflect this in my accounts?

Many thanks

Solange

by **section 44** on Mon Nov 28, 2011 12:30 pm

solange wrote:Never actually had this done

Refund it to the previous tenants?

by **maths** on Mon Nov 28, 2011 12:51 pm

Assuming you were entitled to retain the deposit then it should be brought in as taxable income on the last day of the tenancy agreement.

by **solange** on Mon Nov 28, 2011 1:36 pm

Thanks for your replies guys - as I thought taxable income, just nice to have someone else confirm it

As regards the deductions, inventory/deposit lodgement was all done by a letting agent, via DPS. Deductions had tenants full agreement. Tenant had left the carpets in a state that was more than fair wear and tear. Surprised new tenant was happy for the carpets to be left, but each to their own! Going to give it another 6 months then contact the tenant regarding replacing the carpets.