Record the gross rent and identify the agent’s fees and other deductions separately. The amount deposited in your bank is often net of those charges. Reconcile the statement so neither the rent nor the same expense is counted twice.
Read the statement behind the deposit
Ask the agent for a statement showing rent collected, management fees, repairs paid on your behalf and the amount transferred to you. HMRC's digital-record guidance says that where you know only net income, obtain the full income figure and create records for the income and expenses.
For example, assume an agent collects £1,600 rent, deducts a £160 management charge and transfers £1,440. Recording only £1,440 as rent hides the gross income and the separate cost. Record the underlying amounts, then check whether the expense qualifies for tax relief.
Not every deduction has the same tax treatment
A management fee, a repair, an improvement and a residential mortgage finance cost can require different treatment. The fact that the agent has deducted an amount does not prove that it is an allowable expense against rental profit.
Security deposits and money held for future costs also need explanation. Do not treat every item on the agent's statement as current rental income or a deductible charge without checking what it represents.
Prevent the same rent being counted twice
Where the bank feed already contains the net transfer, the accountant should reconcile it to the statement. Adding gross rent as a separate sale without dealing with the transfer can duplicate income. The record should show how the collected rent, deductions and payout connect.
Keep each statement with the relevant property and period. If an agent pays late or a statement spans a year-end, your accounting method also affects the correct reporting treatment.
Give your accountant the full picture
Provide all agent statements, supporting invoices for unusual costs, details of ownership shares and any direct payments from tenants. TaxSimba can maintain the agreed rental records from that evidence. Sending only the bank deposit is rarely enough to explain the underlying rental activity clearly.
Check the statement against the deposit
Illustration: £1,200 gross rent less a £120 management fee leaves £1,080 paid to the bank. Keep the rent and fee separate instead of entering £1,080 as rent and deducting £120 again. A repair, deposit transfer or tax withheld can introduce other lines; retain the full statement and underlying documents.
Reconcile the agent’s deductions explicitly
Illustrative preparation example.
An agent receives £1,200 rent, keeps £120 in fees and pays £1,080 to you. The statement explains gross income of £1,200 and a separate £120 fee. Recording £1,080 rent and deducting £120 again counts the charge twice.
Check: Does the gross rent less each identified deduction equal the payout?
| Check | Practical action |
|---|---|
| What rent was collected before deductions? | Obtain the full statement and include direct tenant receipts separately. |
| What does each deduction represent? | Distinguish fees, repairs, capital work, retained money and deposits. |
| Does the bank payout reconcile? | Bridge gross rent to the transfer without counting both as separate income. |
Is every amount withheld by an agent deductible?
No. Its nature and tax treatment still need checking. Keep invoices and explanations for unusual items.
What if an agent statement crosses the tax-year end?
Flag its coverage and payment dates. The accounting basis affects how amounts belong in the year.
Download a checklist for this guide
- Collect every full agent statement.
- Record gross rent and direct receipts.
- Identify each fee, cost or retained amount.
- Obtain supporting invoices for unusual deductions.
- Reconcile bank transfers and tax-year cut-offs.