Non-resident landlord

Mojo Risin'

Hi all,

I am currently looking at a property to rent and the landlord is non-resident. He lives in the UK. He has advised me that if I rent the property that I will have to pay the Revenue the tax on the rent. So i pay 80% to him direct and 20% to the Revenue. Does anyone know how I would go about doing this?

Would I have to file a return at the end of each year or do I have to pay on a monthly basis?

Any help would be greatly appreciated!

Cheers

Mojo

pigeonbutler

Mojo Risin' wrote: »

Hi all,

I am currently looking at a property to rent and the landlord is non-resident. He lives in the UK. He has advised me that if I rent the property that I will have to pay the Revenue the tax on the rent. So i pay 80% to him direct and 20% to the Revenue. Does anyone know how I would go about doing this?

Would I have to file a return at the end of each year or do I have to pay on a monthly basis?

Any help would be greatly appreciated!

Cheers

Mojo

I'm surprised he's made you aware of it to be honest! If he appointed an agent to collect it on his behalf there'd be no need for you to withhold tax but it seems he's not doing that.

Here's the form you need to complete and give to landlord http://www.revenue.ie/en/tax/it/forms/formr185.pdf

As regards your return obligations, I assume you're a PAYE taxpayer rather than being self-assessed. In which case it might be best to contact Revenue to determine how you should account for the tax withheld.

If you are self-assessed you simply include the tax withheld on your Form 11 and pay over to Revenue at that stage.

caz100

Hi

I am potential landlord also confused about this topic, I am considering renting my house as I could be moving abroad very soon. I am looking to speak with a resonably priced accountant who can advise me of my options as I am not sure if I can afford to continue to rent it out from abroad given the tax implications. Apologies if this is the incorrect area to post.

barneystinson

caz100 wrote: »

Hi

I am potential landlord also confused about this topic, I am considering renting my house as I could be moving abroad very soon. I am looking to speak with a resonably priced accountant who can advise me of my options as I am not sure if I can afford to continue to rent it out from abroad given the tax implications. Apologies if this is the incorrect area to post.

What tax implications? You either nominate an agent to collect the rent for you (in which case there's no obligation on the tenant to deduct tax), or you don't have an agent and the procedure outlined above applies - in which case you get credit for the tax withheld. The net position is no different whether you are in the country or abroad. It might cost you more money to manage the property in your absence, but that's not a tax implication.

caz100

I've spoken to estate agents, they leave the tax elements to the landlord.

3DataModem

caz100 wrote: »

I've spoken to estate agents, they leave the tax elements to the landlord.

Not all do. Just the cheap / lazy ones.

OP - if the landlord has appointed an agent to collect rent locally, then the agent should be deducting the tax not you.

Mr. Incognito

I'm pretty sure there is a box for it somewhere on the Form 11 and Form 12- download both and have a look

smeharg

Mr. Incognito wrote: »

I'm pretty sure there is a box for it somewhere on the Form 11 and Form 12- download both and have a look

There is on form 11. You enter the tax deducted.

There were murmurings recently about how this isn't really enforced in practice and that it could change. Nothing in the finance bill, though.

The agent is supposed to make a return on behalf of the landlord and pay the tax due (Form 1 is used).

I'd imagine it's a bit a headache for agents and that's why some of them wash their hands of it.


I doubt Revenue would be too concerned as long as the tax is paid.

(Form 12 isn't available online)

3DataModem

smeharg wrote: »

I doubt Revenue would be too concerned as long as the tax is paid.

This Is my experience. I have tenant since before I left Ireland, and Revenue have asked me once or twice to remind him to deduct tax, but as I do my return in Jan each year they don't really give a damn as the tax rolls in on time.

dbran

3DataModem wrote: »

This Is my experience. I have tenant since before I left Ireland, and Revenue have asked me once or twice to remind him to deduct tax, but as I do my return in Jan each year they don't really give a damn as the tax rolls in on time.

True. But if you don't file your return or do a disappearing act while you are non resident they have the option of going after the tenent who is after all in situ, resident and easier to get a hold of.

Nobody thought that they would go after the pensioners for the unpaid tax on their state pension. But they did. I would imagine it would be an area that the revenue could collect a nice tidy sum if they put their mind to it.

dbran