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Irish income and work in the UK

  • 16-11-2016 11:01am
    #1
    lbyrne121
    Registered Users, Registered Users 2 Posts: 206 ✭✭


    Hi

    I work in Northern Ireland but live in the republic and I am considering renting out my property,
    Does anyone know what my rental income tax bill would be to the Republic of Ireland.

    I am paid 35,000 per year, receive 8,400 in rental income?

    I will be registering with the PRTB would I be entitled to tax relief of interest for mortgage?

    I would really appreciate if someone could help me out with these calculations.

    Thanks


Comments

  • #2
    Carawaystick
    Registered Users, Registered Users 2 Posts: 8,779 ✭✭✭Carawaystick


    Are you married? over or under 65


  • #3
    lbyrne121
    Registered Users, Registered Users 2 Posts: 206 ✭✭lbyrne121


    I am not currently married but will be in October.
    My husband to be is a PAYE in republic of Ireland and earns 43k per year


  • #4
    Timbo1987
    Registered Users, Registered Users 2 Posts: 52 ✭✭Timbo1987


    Rental Expenses other than mortgage???

    Mortgage Interest will be allowable if you register with PRTB. 100% allowable for 2016 i think


  • #5
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    Timbo1987 wrote: »
    Rental Expenses other than mortgage???

    Mortgage Interest will be allowable if you register with PRTB. 100% allowable for 2016 i think

    There's a little caveat to that though - from the IT70 leaflet:

    From 1 January 2016, a 100% interest deduction is allowable in respect of residential property which is let for a period of 3 years to a tenant or tenants in receipt of certain social housing supports. Relief for the additional deductions in respect of the 3 year period in question is by way of a claim to Revenue after the end of the period.


  • #6
    EasyAccounts1
    Registered Users, Registered Users 2 Posts: 5 ✭EasyAccounts1


    If you are renting your Irish property to a tenant you would only be able to claim 75% of your mortgage interest. The 100% is if the tenant renting is on social housing. There can be other expenses deducted from your rental income, ie accountant fees, Repairs etc so the more of these the less tax you pay.

    As you are already paying 40% tax (you are over the 33,800 threshold for 20%) then your rental property profits would be taxed at the higher rate of 40% also.
    So per your example:
    8400 received in rental income
    Est Mortgage interest 1000 * .75 ( only 75% allowed) = 750
    Other rental cost (advertising, PRTB registration etc) For now I will only use the 90 fee
    Therefore profit 7,560.
    (you should be able to claim capital allowances on any items that are in the house for tenant use.. eg. kitchen fittings, beds, tv, tables and chairs etc) it would depend on how old these items are..

    With a profit of 7,560 your total tax bill would be 3,855.60. (51% Tax - 40% tax, 4% PRSI and 7% usc)

    If your tenant is only renting a room in the house, you would be able to claim the rental income as rent a room relief.. This method allows for rent up to 12,000 being tax free.


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