New Landlord-not sure what to do

guideanna

Hi All,

I've just rented out my apartment and i've sent off my form to register with the PRTB. Just wondering what else do i have to do.
How do i pay the tax on this income, do i get a bill from PRTB or do i need to notify someone else....not quite sure how it all works.

Thanks

Mr. Incognito

if you live in the apartment google rent a room scheme.

If you don't you'll have to file a Form 12 with rental income on it if you are a PAYE employee and Form 11 if you are self employed

mathepac

Mr. Incognito wrote: »

if you live in the apartment google rent a room scheme. ...

If OP still lives in the apartment there is no need to register with the PTRB

Mr. Incognito wrote: »

... If you don't you'll have to file a Form 12 with rental income on it if you are a PAYE employee and Form 11 if you are self employed

Both incorrect AFAIK.

Income received under the rent-a-room scheme must be returned as income whether OP is PAYE or under self-assessment (as distinct from self-employed) and whether the rent received is under the rent-a-room scheme threshold or not.

If the OP will receive >3,174 in rents or other non-PAYE income in the tax year, then s/he has no option but to register for self-assessment taxation.

Mr. Incognito

If OP still lives in the apartment there is no need to register with the PTRB

Correct.

Income received under the rent-a-room scheme must be returned as income whether OP is PAYE or under self-assessment (as distinct from self-employed) and whether the rent received is under the rent-a-room scheme threshold or not.

If the OP will receive >3,174 in rents or other non-PAYE income in the tax year, then s/he has no option but to register for self-assessment taxation.

Incorrect. There is a Revenue SOP on this.

If you are a live in landlord and the income is under the threshold unless you are already self assessed then there is no obligation to report the income. It eases the administrative burden on Revenue.

If you are not a live in landlord then the rent a room scheme does not apply and the landlord is oblidged to furnish a Case V rental computation. If they are a PAYE employee revenue will accept a Form 12 for this as long as they have no other forms of income.

If they have other forms of income, shares, etc then a Form 11 is required.

barneystinson

Mr incognito +1 (if you have a link to that SOP you might let me know? T'would be handy to have..)

OP has asked how they go about fulfilling their tax obligations. And assuming you're not under rent a room scheme, as suggested by the fact you have registered with PRTB, then you will need to keep records of the income and expenditure associated with your rental property.

If you look on the revenue website you'll find plenty of info. Basically you can can claim as expenses against the total rent received in the year for items like:
Loan interest on a loan used to finance the property.
Repairs & maintenance.
House insurance.
Prtb reg costs.
Letting agents fees.

If you have a recent and substantial mortgage, it's possible you'll actually have little if any net rental income, after subtracting your costs...

guideanna

Thanks all,

I'm not going to be living in the apt. We've just got a mortgage on another property which i'll be co-owning and living in.
So what i understand is, i need to get a form 11.
I need to keep records of all my income and expenditure for claiming back.

Can i ask do i send the form in at the end of the year or do you just send it in whenever, also when am i liable to pay the tax on the rental income? Does this go on Form 11?