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Tax on Rental Income

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  • Banned (with Prison Access) Posts: 127 ✭✭Abbey127


    bri007 wrote: »
    It takes one person to report it to the council that you have people living in the log cabin and all your money is then gone, as you will be forced to pull the cabin down.

    I heard of some of these log cabin companies telling customers that they can rent these out but they are not telling the full true story.

    It’s a costly thing to do and one that won’t work out, other than using it as a gym or playroom etc and not as a habitable place.

    I have already told my neighbours I will be building a log cabin they have no problem with it also it's not in the way of anyones view . I'm pretty sure they can't do anytime once it's has planing permission and is within propper size of the law. If log cabin companies did not tell the whole truth then that would be illegal and would have a lot of court dates lol .


  • Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Abbey127, your posts are quite confusing as you keep posting about having planning permission while at the same time stating planning permission is not required.

    If you have applied for, and been granted planning permission (by the local authority) for your log cab then you won't have a problem.

    If you have not applied for planning permission and are relying on the provisions for exempted development then you cannot use the structure as a dwelling. Exempted development does not apply if someone is going to live in the cabin.

    DCC have issued enforcement notices for the removal of cabins where they are being used as dwellings without the necessary planning permission.

    Mod Note

    If you are planning to ignore the planning laws and go ahead regardless, that is not something you can discuss here.


  • Closed Accounts Posts: 2,350 ✭✭✭doolox


    Out in a rural area with few neighbours and if you stick to short term rents with single people, then you should have no problems.

    If someone complains and you are in a job in a sensitive public area then there could be problems.

    I was in a similar position in the west 20 years ago having to get retention on a chalet behind my parents home.

    It went through eventually after much submissions by a specialised engineer doubly qualified as a lawyer but the cost was high. The cost of not getting PP would have been much higher, entailing knocking down and removing the structure.

    20 years on and the current owner of the house, from what I have seen on Google maps,( I know....I'm a curious old geezer) has added an extra chalet and extended the existing by another room. This is due to a change in septic tanks to mainline sewage and an urbanisation of the locality in the intervening 20 years allowing more building in smaller plots than heretofore.

    Planning processes have become much stricter and people have become much more vocal in their opposition to new developments. You appear to be fortunate in having aligned your plans with your neighbours lifestyles and living arrangements and have not stepped on any toes in your locality. This is vital in order to progress further with your plan.

    If you intend to do any major electrical work, which this involves, then you will need a RECI registered contractor to sign off and approve any such work. An accident or fire in the future could land you in deep trouble.
    Any habitable space will be subject to inspection by a fire officer and the arrangement of the chalet. door and window openings escape routes etc will need to be planned out to their satisfaction.
    Connection to services will need to be inspected and signed off to an approved standard unless you are willing or able to tee into your existing houses services. If the capacity of the waste system is not big enough to handle more waste this can lead to problems, similarly ESB supply capacity may need to be upgraded in order to accommodate extra cookers, heaters or showers.All of these approvals by officials exposes you to detection and refusal or enforcement by the local authorities.

    I have heard of people using the rent a room scheme by renting out a room in their house. Their chalet down the back is cited as being for storage , if anybody asks. The reality is that the licencee is allowed to live and use the chalet and is only given cursory use of the room in the main house. Both parties to this agreement get to enjoy the benefits of a separate rental arrangement with totally separate living, sleeping, cooking etc arrangements but the owner gets the benefit of €14k pa tax free.......

    This needs very careful vetting and choosing of the licencee as an informant to the relevant authorities could blow the whole thing out of the water.

    I have been told that a lodger having a separate front entrance and access to the public street renders the rent a room scheme invalid and the owner becomes liable for full rate of tax, PRSI, USC etc. Both the house owner and the licencee must share the living spaces except the bedroom, hence rent a room.
    Also the kicker is that any amounts received over €14k per year renders the whole lot liable to tax. So if you get €14,001 the whole lot becomes liable to tax at your marginal rate.

    If you are self employed you are obliged to engage an accountant to return tax statements by Oct 31st each year. PAYE workers can do this themselves but it can be complex. Receipts for any expenses must be kept for 6 years.


  • Banned (with Prison Access) Posts: 50 ✭✭Phillip k


    Hi has anyone built a granny flat at the end of there garden or side entrance if have one . Trying to decide between a granny flat or a log cabin I know alot of people are goimg with log cabins nowadays. If anyone knows the pros and cons would appreciate any advice thanks.


  • Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Phillip k wrote: »
    Hi has anyone built a granny flat at the end of there garden or side entrance if have one . Trying to decide between a granny flat or a log cabin I know alot of people are goimg with log cabins nowadays. If anyone knows the pros and cons would appreciate any advice thanks.

    Pros:

    Nice shed

    Cons:

    Planning.


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  • Banned (with Prison Access) Posts: 50 ✭✭Phillip k


    Pros:

    Nice shed

    Cons:

    Planning.

    Planning is no problem for me


  • Registered Users Posts: 6,197 ✭✭✭Claw Hammer


    Phillip k wrote: »
    Planning is no problem for me

    Why not?


  • Registered Users Posts: 5,875 ✭✭✭Edgware


    Pros:

    Nice shed

    Cons:

    Planning.
    Pros: Nice shed

    Cons: Granny


  • Moderators, Society & Culture Moderators Posts: 32,280 Mod ✭✭✭✭The_Conductor


    Phillip k wrote: »
    Planning is no problem for me

    How so?


  • Moderators, Society & Culture Moderators Posts: 38,796 Mod ✭✭✭✭Gumbo


    Phillip k wrote: »
    Hi has anyone built a granny flat at the end of there garden or side entrance if have one . Trying to decide between a granny flat or a log cabin I know alot of people are goimg with log cabins nowadays. If anyone knows the pros and cons would appreciate any advice thanks.

    Pros. Can be a nice space.
    Cons. You won’t get planning.


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  • Registered Users Posts: 14,272 ✭✭✭✭Dav010


    I didn’t think the op was serious when I started reading this thread.

    Op, apart from the obvious questions like why would you invest so much in a highly visible business venture without first checking the fundamental regulations which would apply and why you think the planning laws which apply to everyone else, shouldn’t apply to you. There are also other questions you have to ask yourself.

    • what implications is this going to have on your parents. How do they feel about randomers going to the back of THEIR house all hours of the day and night.
    • if the council get an order against the structure, as the land owners, it will most likely be against them.
    • you said the neighbours won’t complain, wait until the loud music/parties start.
    • what happens when an argument arises with a tenant, will you be happy for them to be at the back of your parents house.
    • you need planning for Airbnb/short lets, if you have tenancy lets, how are you going to register with the RTB/bring a case if you are not the owner?
    • what are the implications if your parents/their beneficiaries want to sell? A solicitor will tell you that without planning, their is a major issue.

    Sounds to me like you think you can make a handy few quid without actually thinking it through. You need to talk to planning, talk to a solicitor so that you don’t expose your parents and remember to talk to tradesmen, even cabins need services.


  • Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15




  • Banned (with Prison Access) Posts: 50 ✭✭Phillip k


    Hi planning permission is no problem for me as it was just approved. I knew it wouldn't be as I have been planing this for a good while now and not just decided to build a cabin to be rented out . Also my neighbour who is at the other end of my cul de sac got one built . I'm am at a good location as have easy access to a public road . They will have there own enterence and parking spot to the cabin away from the front of my home . There will be no load music as I will be very careful of who I pick to rent it out to . I also have a family member who is a property manager and can help me if i have any problems.


  • Banned (with Prison Access) Posts: 50 ✭✭Phillip k


    kceire wrote: »
    Pros. Can be a nice space.
    Cons. You won’t get planning.

    Thanks for the replay I have already got approved for planning permission


  • Banned (with Prison Access) Posts: 50 ✭✭Phillip k


    I just have to make sure that who ever I rent it out to is able to use a parking space that is available behide my house if they need it as I think it would great to have.


  • Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Phillip k wrote: »
    Trying to decide between a granny flat or a log cabin

    Did you get planning for the granny flat or the log cabin?


  • Registered Users Posts: 14,272 ✭✭✭✭Dav010


    Phillip k wrote: »
    Hi planning permission is no problem for me as it was just approved. .

    So you did apply for, and was granted planning by DCC? You are giving conflicting reports about this.


  • Banned (with Prison Access) Posts: 50 ✭✭Phillip k


    Graham wrote: »
    Did you get planning for the granny flat or the log cabin?

    Log cabin


  • Moderators, Society & Culture Moderators Posts: 38,796 Mod ✭✭✭✭Gumbo


    Phillip k wrote: »
    Thanks for the replay I have already got approved for planning permission

    Can you link to the public grant of planning as I think you are the first person in Ireland to get planning permission for this.

    I also think you may be spoofing as only 2 days ago you posted stating you couldn't decide between a granny flat or a log cabin, now you say you have planning, but you would of having to clearly pick one for the lodgement of the planning application in the first place................

    Phillip k wrote: »
    Hi has anyone built a granny flat at the end of there garden or side entrance if have one . Trying to decide between a granny flat or a log cabin I know alot of people are goimg with log cabins nowadays. If anyone knows the pros and cons would appreciate any advice thanks.


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  • Banned (with Prison Access) Posts: 50 ✭✭Phillip k


    Dav010 wrote: »

    I'm ok I have easy access to a public road .

    The report stated that a "crucial matter" with log cabins in many cases is the lack of safe and independent access from the public road.

    City Planner John O’Hara said the council would be flexible and that a log cabin with its own external access "would be looked on favourably


  • Moderators, Society & Culture Moderators Posts: 38,796 Mod ✭✭✭✭Gumbo


    Phillip k wrote: »
    I'm ok I have easy access to a public road .

    The report stated that a "crucial matter" with log cabins in many cases is the lack of safe and independent access from the public road.

    City Planner John O’Hara said the council would be flexible and that a log cabin with its own external access "would be looked on favourably

    So you haven’t got planning?
    This legislation that John is talking about has not been enacted yet.


  • Moderators, Society & Culture Moderators Posts: 32,280 Mod ✭✭✭✭The_Conductor


    And thread closed.
    Trolling is not appreciated, thankyou.


This discussion has been closed.
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