Tax on rental income...preliminary tax...

mauraf

Hi

Can someone please advise? I have completed my tax returns for this year, amd calculate my tax liablity for 2011 in the region of 1262....last year it was 1024.
My preliminary tax payment lasy year was only 182....done by an accountant...so not sure what my preliminary tax liability should be for this year??Can anyone help???

Maura

Alan Shore

You have two options 100% of 2011 approx €1,270 or 90% of 2012 €?. Don't know where the prelim figure for last year came from did you have a refund from 2010?

mauraf

Alan Shore wrote: »

You have two options 100% of 2011 approx €1,270 or 90% of 2012 €?. Don't know where the prelim figure for last year came from did you have a refund from 2010?

Thanks Alan...to be honest,I don't know how last years preliminary taxes were done...!does that mean this year I have to pay eg 1024 plus 1270....2294??? This year??

Shane732

mauraf wrote: »

Thanks Alan...to be honest,I don't know how last years preliminary taxes were done...!does that mean this year I have to pay eg 1024 plus 1270....2294??? This year??

You have to pay the balance of your 2011 liability and preliminary tax for 2012.

Based on the figures you've provided the balance of your 2011 is €1,080. You then have to pay your preliminary tax for 2012 which can either be 100% of your 2011 liability (i.e. €1,262) or 90% of your 2012 liability.

mauraf

Hi there,

Sorry - am a bit confused - I did pay 1024 to revenue last year plus 182.
So this year - I calculate my liability to be 1262...would that not be the only thing I have to pay?

Thanks
Maura

backinexile

Your liability for 2011 is €1,262, against which you have already paid €182, leaving €1,080 due for 2011.

Your preliminary tax for 2012 is €1,262.

Therefore in Total you owe €2,342. Payable by the 31st of October 2012.

Or 15th/16th ish if you file and pay online.

mauraf

Thanks backinexile...do I need to include prsi and usc on gross rental income as well?

kennyb3

backinexile wrote: »

Your liability for 2011 is €1,262, against which you have already paid €182, leaving €1,080 due for 2011.

Your preliminary tax for 2012 is €1,262.

Therefore in Total you owe €2,342. Payable by the 31st of October 2012.

Or 15th/16th ish if you file and pay online.

15th November for online pay and file just to clear up.

Also just to be clear OP it seems weird a prelim tax payment of only €182 was advised?? This potentially leaves you exposed to interest.

mauraf

kennyb3 wrote: »

15th November for online pay and file just to clear up.

Also just to be clear OP it seems weird a prelim tax payment of only €182 was advised?? This potentially leaves you exposed to interest.

Thanks all...re interest,how should I account for that if I want to pay it now?can I do that??worried have left this late!!and what my exposure is....

Itchianus

mauraf wrote: »

Thanks backinexile...do I need to include prsi and usc on gross rental income as well?

If you're completing the return on ROS offline / ROS online, and you really should be, it calculates the liability for you, including PRSI.

Itchianus

mauraf wrote: »

Thanks all...re interest,how should I account for that if I want to pay it now?can I do that??worried have left this late!!and what my exposure is....

You don't account for it, if they want it they'll bill you, and the likelihood is on the amount of tax you owe you won't be charged any.

sam4kerry

hi guys this is my first time posting so here goes my story....changed accountants last year to find out my previous accountant was claiming an industrial allowanace on a house we rent out. To cut a long story short we owe revenue €9300 as she shouldnt have claimed this and Im wondering if anyone has been in this situation and if they'd any luck getting any money off the acountant who made the mistake. TG i changed accountants when I did cause it could have gone on for years as it is will have to get loan to pay revenue as momey's scarce.

gambithh

sam4kerry wrote: »

hi guys this is my first time posting so here goes my story....changed accountants last year to find out my previous accountant was claiming an industrial allowanace on a house we rent out. To cut a long story short we owe revenue €9300 as she shouldnt have claimed this and Im wondering if anyone has been in this situation and if they'd any luck getting any money off the acountant who made the mistake. TG i changed accountants when I did cause it could have gone on for years as it is will have to get loan to pay revenue as momey's scarce.

seems massive money.how many years was this allowance been claimed for?

sam4kerry

it was claimed over 4years, accountants mistake should never have been claimed