Tax on rental income.

Wexford96

Hello.
I have some property in Ireland and live overseas. I went to an accountant in Ireland after buying the property (Jan 2015) and he said I would need to pay tax on the rental income in Oct/Nov 2016. I only recently remembered I need to pay this tax now.
Could anyone tell me when is this tax due precisely?
Thank you.

HcksawJimDuggan

Wexford96 wrote: »

Hello.
I have some property in Ireland and live overseas. I went to an accountant in Ireland after buying the property (Jan 2015) and he said I would need to pay tax on the rental income in Oct/Nov 2016. I only recently remembered I need to pay this tax now.
Could anyone tell me when is this tax due precisely?
Thank you.

10th November 2016 if filing & paying online. 31st October if completing manual form or paying by cheque.

Wexford96

Thanks for info. Do you know any website I could use to know more about this in future? Also, do you reckon I can do this myself without the accountant?
Cheers

HcksawJimDuggan

http://www.revenue.ie/en/practitioner/calendar.html

It all depends on your knowledge of the Irish tax system. Some items of expenditure are deductible as rental expenses and some aren't so if you include the one's that aren't it may turn out to be an expensive mistake. Might be better off to let the accountant look after the first year anyway.

Wexford96

Are there penalties if I am, say, 1 month late in paying?

relax carry on

Wexford96 wrote: »

Hello.
I have some property in Ireland and live overseas. I went to an accountant in Ireland after buying the property (Jan 2015) and he said I would need to pay tax on the rental income in Oct/Nov 2016. I only recently remembered I need to pay this tax now.
Could anyone tell me when is this tax due precisely?
Thank you.

You are a non resident landlord. Have you a collection agent or are your tenants forwarding the 20% tax to Revenue?

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section21

Wexford96

Tenants are not forwarding anything onto Revenue. They simply lodge the rent in my account and have been doing so since Jan 2015.

reubenreuben

relax carry on wrote: »

You are a non resident landlord. Have you a collection agent or are your tenants forwarding the 20% tax to Revenue?

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section21

HI, just wondering why does 20% have to be paid by the tenant?

I am a tenant of a non resident landlord and i pay the landlord in full.

gerrybbadd

reubenreuben wrote: »

HI, just wondering why does 20% have to be paid by the tenant?

I am a tenant of a non resident landlord and i pay the landlord in full.

Its a means to make sure that some of the tax due on the rents is collected. If you are paying an agent, who collects the rents on behalf of the landlord, you have no worries.

However, if you are paying the landlord direct, what you are meant to do is withhold 20% of the rent, and remit this over to Revenue.

For example, say your rent is €100 per week. You give the Landlord €80, stopping €20, that you are then liable to pay to Revenue. What is normally done then is, your tax credits get reduced by whatever this figure is x 52 weeks, so in the example above - €20 x 52 = 1040 reduction in tax credits.

You also have to give the Landlord a Form R185 (think it's called) at the end of each year, detailing how much was stopped per year.

Gaillimh1976

Wexford96 wrote: »

Are there penalties if I am, say, 1 month late in paying?

It used to be 5% of the tax due for up to 3 months late, 10% of tax due for anything later than that

gerrybbadd

Gaillimh1976 wrote: »

It used to be 5% of the tax due for up to 3 months late, 10% of tax due for anything later than that

That's the surcharge - penalties are charged at different rates, and are separate charges altogether

Carawaystick

I always wonder how a tennant is meant to know if their landlord is resident abroad or not. I mean the Revenue don't know sometimes