Form 12 - First year

muggles

Quick query on first filing of Form 12.

I am a PAYE worker but have a property let since Oct 2015 so therefore need to file for rental income. What is my first filing period?

01 Oct 2015 to 31 Dec 2015 followed by the full 2016 year?
or
01 Oct 2015 to 30 Sep 2016 followed by three month period to end 2016?

or can I include 15 months rental income along with 12 months PAYE income in 2016 return?

I know this is probably something I can find on Revenue website or elsewhere but I'm sure there are some posters to which this is so familiar they will just know off top of their heads!

Gumbo

First let out inn October 2015.
Tax return has to be done by October 2016.

First return will be 2015, Oct, Nov and Dec.

muggles

Thank you kindly kceire.
Now to just sit down and do it! :cool:

Kings Inns or bust

I get an accountant to do ours and part of my law degree was revenue law. It just wrecks my head. Fair play to you for going the DIY route!

LFC Murphy

May I ask what an accountant costs for just rental income for a PAYE worker.

I filed my returns in august and just got my bill 😨

Gumbo

LFC Murphy wrote: »

May I ask what an accountant costs for just rental income for a PAYE worker.

I filed my returns in august and just got my bill 😨

I've been charged €250, but I've seen people been charged 300-500.

What did you get charged?

riclad

form 12 Is Pretty self explanatory ,you can leave a lot of the pages blank,
if you have no shares,bonds, children ,foreign investments etc
if you are on paye , alot of the pages, sections don,t apply to you.

garbeth

Try <mod snip> have used them before and found them great. You need to keep your own records and then input them before year end. After paying you have access to phone and online support and they can answer any questions you have

I used a bam accountant for my first years at a cost of €900 and then used these afterwards


Btw I have no connection to <mod snip> just a happy customer

riclad

An accountant will charge you around 300 to do your tax return,
if you fill it in yourself you,ll need your p60 ,
and your info re loan, re the interest paid on the loan for that tax year.
Say the interest paid is 1000 euro, you claim for 750 euro as
an expense ,eg 75 per cent of the interest paid .
then you can claim for insurance ,maintenance,service charges ,accountants fees ,agents fees .
and for items like a fridge ,cooker , sofa, eg large items bought for the rental unit.

LFC Murphy

kceire wrote: »

LFC Murphy wrote: »

May I ask what an accountant costs for just rental income for a PAYE worker.

I filed my returns in august and just got my bill

I've been charged 250, but I've seen people been charged 300-500.

What did you get charged?

I filled myself before the Aug 31st deadline so Revenue will calculate. Just was shocked when I received the bill.

I've deduced everything as usual, 75% interest (although I'm on a tracker), very little maintenance in 2015, capital expenditure, wear & tear etc.

I made an overall loss in 2015, as I do every year, however have to pay ~51% tax on this So Called income.

LFC Murphy

riclad wrote: »

form 12 Is Pretty self explanatory ,you can leave a lot of the pages blank,
if you have no shares,bonds, children ,foreign investments etc
if you are on paye , alot of the pages, sections don,t apply to you.

I actually submitted a Form 11? Is this an issue. I was a little confused regarding Sch. 25B etc etc...

Michael D Not Higgins

LFC Murphy wrote: »

I filled myself before the Aug 31st deadline so Revenue will calculate. Just was shocked when I received the bill.

I've deduced everything as usual, 75% interest (although I'm on a tracker), very little maintenance in 2015, capital expenditure, wear & tear etc.

I made an overall loss in 2015, as I do every year, however have to pay ~51% tax on this So Called income.

Capital repayments are not a business cost so it isn't a loss.

LFC Murphy

Sorry I mean't Capital allowances.

LFC Murphy

Can I resubmit form 12 before Oct 31st?

Michael D Not Higgins

LFC Murphy wrote: »

Sorry I mean't Capital allowances.

No, I mean you're looking at it from the costs to you. You're saying you're getting X in rent but you have to pay Y in mortgage, maintenance, etc.

Your mortgage is a capital repayment which isn't a business expense and is thus not tax deductible so shouldn't even be considered in your profit and loss calculations.

muggles

LFC Murphy wrote: »

Can I resubmit form 12 before Oct 31st?

If you're self employed you submit a Form 11, if you're a PAYE worker you submit a Form 12.

When you say you made an overall loss, do you mean across the board on all your earnings or are you just talking on the rental?

LFC Murphy

I'm a PAYE
And regarding losses, just talking about Rental Property

riclad

MY Friend sends in A form 11 every year by post ,
You can claim 75 per cent of the interest paid on the loan,
she is on paye ,but rents out 1 apartment ,
she works full time 9-5 in an office.
you cant claim as an expense the capital repayments on the mortgage.
The first 12 years of the loan most of the payments are interest ,.
the bank should send you a letter every year,showing interest paid on the loan.
If You filled in form 11 correctly there,s no need to fill in form 12 .
Your taxable profit on rental is rental income minus all allowable deductions .75 per cent of the loan interest, plus various expense,s .What is schedule 8
25b .?

saying your mortgage is not a business expense is simply wrong .
Revenue will accept form 11 as a proper tax return on rental income ,
they,ll write back to you to clarify if theres any issue if you left something out on the form ,eg pension scheme payments ,prsi payments etc

LFC Murphy

Figured it out.... I've omitted my Allowable Interest

riclad

Its, important to put in your allowable interest as an expense,
as ,most years that,ll biggest expense after services charges, insurance .
your tenant must be registered with the prtb,
before you can claim any interest on a mortgage.
See www.prtb.ie ,
the tenancy has to be registered every 3 years .

LFC Murphy

riclad wrote: »

Its, important to put in your allowable interest as an expense,
as ,most years that,ll biggest expense after services charges, insurance .
your tenant must be registered with the prtb,
before you can claim any interest on a mortgage.
See www.prtb.ie ,
the tenancy has to be registered every 3 years .

Thanks, yes I'm all registered etc with PRTB. I made a clericial error on the form.

I kept a photocopy of my Form 11 I sent in August and noticed I left my 75% Mortgage Interest out !!!!!

Aghhhhh.... what can I do? I have recalculated my Tax based on the new numbers. Can I resubmit before 31 Oct?

Gumbo

LFC Murphy wrote: »

Thanks, yes I'm all registered etc with PRTB. I made a clericial error on the form.

I kept a photocopy of my Form 11 I sent in August and noticed I left my 75% Mortgage Interest out !!!!!

Aghhhhh.... what can I do? I have recalculated my Tax based on the new numbers. Can I resubmit before 31 Oct?

just contact the inspector that's on the bottom of the bill request.
Or send an email, Revenue are generally promt about returning to you.

Baby01032012

riclad wrote: »

Its, important to put in your allowable interest as an expense,
as ,most years that,ll biggest expense after services charges, insurance .
your tenant must be registered with the prtb,
before you can claim any interest on a mortgage.
See www.prtb.ie ,
the tenancy has to be registered every 3 years .

Rereg every 4 years.

riclad

fill in another form 11 ,with the loan interest filled in,
put in a letter i sent in form 11 in august, i forgot to fill in the section
re loan interest as an expense.
Can you ignore my previous august form 11 ,
and just calculate my tax bill from the new form 11 sent in this week.
or just phone them and ask them is it ok to send in a new form 11 .