Tax Relief for Rent-does it affect landlord?

sonners

Hi Lads,
Heres the deal, I've been renting my fathers house from him for the past 3 years. I'm now looking into claiming tax credits for paying rent-as I'm entitled to. But what I'm wondering is - if I claim tax credits for renting in his house will this affect him? Ie. I dont know if he is declaring the rent he gets (I doubt it!). I dont wanna cause trouble for him but I want the money I'm entitled to!

If anyone has any insight on this I would much appreciate your help,
Cheers,
Sonners.

indiewindy

You should talk to him about it first,as your dad is renting to you I think that there is a tax exemption for him, but to be sure just look up revenue.ie or ring the tax office with it as a general query. you can claim it going back 4 years and its worh €5 off your weekly tax bill so you will get a nice refund.

sonners

thanks indiewindy, I tried checking on revenue.ie but could'nt find it. Was afraid to contact the tax office incase it got him in trouble, but yeah, I can give them a ring and ask without giving any details (never thought of that :rolleyes: ).

I've calculated that I'm owed about a grand in backpay, goin to vegas in sept so wud b nice to get this sorted beforehand

markpb

If it's not his primary place of residence or it is and you paid more than 7.5k a year, he should have paid tax on all the money you paid him. When you claim credits, there's a good chance the revenue will spot the mismatch at the end of the year and audit him.

Also, AFAIK, several people here have said that revenue no longer give credits for rent if there's a family link between the landlord and tennant to stop people claiming to have paid rent while living at home. I'm not sure if this would apply to you since the address is different.

fintan

I know someone who would always negoiate a discount on the rent with a landlord in lieu of applying for tax credit from the revenue.

Of course it only works for landlords who dont declare the income.

The_Conductor

Sonners- I seriously advise you sitting down and having a chat with your father to figure out what exactly the lay of the land is. Not only would your father have to be claiming the rental income- the tenancy would also have to be registered with the PTRB. Make 100% certain that all is sorted from your fathers end, before contacting the Revenue Commissioners- as you really don't want to send your father up the creek........

Jo King

There is no rent relief where you are renting from a family member unless it is at arms length and at full market rent.

bugler

I was actually interested in the answer to this topic for my own reasons.

I've been renting a place since last October. I've checked on the PRTB site and my address is not on it. There is an agency looking after things, I assumed this meant it would be done legit, as don't the agency also have to register the tenancy?

I've heard of receipts being needed for the money paid, will lodgement slips do?

I'm going to ask the letting agent about the landlords PPS number, but I'd like to know the situation before doing so. If it's not forthcoming then we're going to have to see about an 'arrangement'.

talkingclock

bugler, i have claimed earlier this year tax relief for rent of 2005 and 2006 online. i just gave my previous addresses, the rent i've paid and the landlords addresses. i ddidn't had either their PPS numbers nor did i had a proof of rent payments. I got a nice sum from the taxoffice lodget into my bank account without any further questions.

MysticalSoul

Also, you would not get €1000 back, there is a ceiling in relation to rent relief that you can get back. I think the max is €400 off the top of my head.

Yes, rent relief does not apply for family members, that was scratched at the last budged in December, to the best of my recollection.

sonners

hey lads,
I called the paye crowd on friday and they said the same as has been mentioned here-he would have to be declaring the tax otherwise he could be audited. The house is not his place of residence so I'm not sure how it works if it was.
There's a ceiling of just under 400 that can be claimed back in a year, the 1000 I was referring to would be from the last 3 years accumulated. I may contact my dad and see what way he wants to work it. Have a feeling I wont be getting a penny, pretty pissed off coz I'm paying the same rent I would be elsewhere and if I did'nt know the landlord I'd have no problem claiming it (would'nt bother me if he got in trouble tbh). Ah well, the old saying of mixing business and family holds true once more :rolleyes:

bugler

Tell the aul fella that you'd like to claim your allowance back, and if he doesn't step in you'll shop him! He's saved plenty by having you in there if you've been paying the market rate. If he hasn't been doing you any favours why should you do him one?

sonners

believe me bugler, I am VERY tempted. When people hear its my fathers house they automatically assume I'm getting a free ride (fair enough) but this is purely a business arrangement. If things break I get my boyfriend or one of my friends to fix it for me, and only contact my dad if it costs me over 100 or so. And likewise, he only contacts me when he's looking for more money :rolleyes: I'm often tempted to move so he gets new tenatns in and sees exactly how much hassle I've been saving him over the years.

I think I'll be putting it to him this way "I'm owed <insert money value here> in tax credits from rent, either you pay me the money or I'll claim it". If I claim it he'll probably end up paying alot more than what I'm entitled to.

SarahMc

There was an amendment last year that you couldn't claim tax relief if you were renting from parents. I'm not sure if this applies if you are living away from home, and your parent happens to be your landlord.

The whole raison d'etre of the introduction of the scheme was to catch out dodgy landlords, so if you claim the relief, and your dad is a tax dodger, then yes, you will get him in trouble.