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Posted Thu, 09 Jan 2025 10:04:38 GMT by Katherine Sams
Dear Sir, Madam,
We made a claim on our insurance for our holiday let property in 2024. This included being reimbursed for lost income during the tax year 23 to 24.
We have not received final confirmation that we will receive this money, but it seems likely.
Can we declare it for the 23 to 24 tax year even though we are receiving it this tax year?
If we haven't received confirmation by the time of the deadline for submitting our tax forms, can I write a note and give the update later? This is especially important as I am also a carer and may lose carers benefit if the income goes over threshold this tax year because of the reimbursed income for 23 to 24. It would also seem more reasonable to be able to declare the reimbursed income for the year in which it was lost. Thanks and Best wishes Mrs Sams
Posted Thu, 23 Jan 2025 11:26:23 GMT by HMRC Admin 13 Response
Hi Katherine Sams
Please see the guidance at PIM2072 - Deductions: main types of expense: bad and doubtful debts - HMRC internal manual.
Landlords not using the cash basis of accounting, rents and other receipts that were earned in the year even if they were not paid until the year end should still be brought into the account. The debt is made in the year the debt becomes bad or doubtful.
In this case, you would declare such income within the 2023/2024 tax return. 
Thank you
 

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