PAYE worker plus other income

snowy393

Hello,

I am a PAYE worker. I will have extra income this year from renting some land that I got transferred over from my parents. I am currently over the 40% PAYE limit. I do not farm the land but do carry out maintenance such as drainage, fencing, roadways. The sheds have electricity also. The water on the land is currently supplied by my parents well so there would be some costs associated with that also.

Do I need an accountant to make my tax return on the extra income. I would prefer to do it myself if thats practical.

If not, can I use the PAYE anytime webpage to make my tax return.

How would the income tax be calcuated.
e.g. Rent received €5,000 - rent for the year payable in 2 €2500 payments
e.g. Insurance €500
e.g. Drainage €500
e.g. Fencing €800
e.g. Diesel €400
e.g. Electricity €300
e.g. water

Can I subtract all my costs from the rent received and just pay tax on the balance.

Would it be a good idea to open a seperate current account and get a seperate cheque book for this instead of mixing it with my normal finances.

Any advice would be appreciated.

gerrybbadd

That's basically it, subtract your expenses from the income on the land, and pay tax on the difference. You would need to declare this annually on either a Form 12 (if the income is under €3175 after expenses), otherwise, you'd need a Form 11.

It's be a good idea to keep some simple accounts, in the event Revenue may ask to see them.