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Where Taxpayers and Advisers Meet

Rent Refund Tax Question

Posts: 2
Joined: Wed Jan 23, 2019 4:23 pm

Rent Refund Tax Question

Postby Tallorder » Wed Jun 12, 2019 5:09 pm

Hi, I am a self employed sole trader and I rent 2 garages to store some business items and have been claiming the rent as an expense since 2 years ago when I first got them. I recently received a letter saying there had been a mistake and they had been overcharging me for 2 years and that they would be sending me a refund of a few hundred pounds. The payment arrived today. As I have already claimed all the past rent as expenses on my accounts what do I do about this latest payment? Also does it matter that about half of this refund is related to 2 years ago for which the self assessment had already been submitted? Thank you for any help you can offer.

Posts: 107
Joined: Mon Mar 11, 2019 4:22 pm

Re: Rent Refund Tax Question

Postby Jholm » Wed Jun 12, 2019 5:29 pm

I would say to include it in this years turnover. If it was declared as an expense, you claimed tax relief on it. Therefore, the other side of the coin is to declare it within your turnover.

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Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen

Re: Rent Refund Tax Question

Postby wamstax » Wed Jun 12, 2019 10:07 pm

As opposed to turnover I would treat it as a receipt against rents in the current year as received
regards and hope this helps
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