New to rental income

Champ

Hi,

A little background info.

One of my parents passed away and looks like I'm going to inherit their property.
The property is already been rented out (via management agency) and I believe I'll keep it that way. Mainly because the extra regular income from the rent would be welcomed.

I've solely been a PAYE taxpayer to this.
I am registered with the Revenue MyAccount service as I've filed health expenses a few years go (Form 12 I think?).

After a bit of reading the rental income is going to be push me into Form 11.
I used to know someone who filed Form 11 years and years ago and the Form at that time looked very... unpleasant.

I'm guessing the online portal generally makes this easier to manage? Can you upload scans of receipts etc so you don't have to keep paper records for X number of years?

Assuming the rental income is my only other additional income outside of PAYE then I just need to file Form 11 once a year before the 31st of Oct and that's that sorted?

As a backup just to keep my options opened I'm considering the paylesstax.ie service for helping to file. Anyone used this service?

Thanks for your input.

John_Mc

Champ wrote: »

Hi,

A little background info.

One of my parents passed away and looks like I'm going to inherit their property.
The property is already been rented out (via management agency) and I believe I'll keep it that way. Mainly because the extra regular income from the rent would be welcomed.

I've solely been a PAYE taxpayer to this.
I am registered with the Revenue MyAccount service as I've filed health expenses a few years go (Form 12 I think?).

After a bit of reading the rental income is going to be push me into Form 11.
I used to know someone who filed Form 11 years and years ago and the Form at that time looked very... unpleasant.

I'm guessing the online portal generally makes this easier to manage? Can you upload scans of receipts etc so you don't have to keep paper records for X number of years?

Assuming the rental income is my only other additional income outside of PAYE then I just need to file Form 11 once a year before the 31st of Oct and that's that sorted?

As a backup just to keep my options opened I'm considering the paylesstax.ie service for helping to file. Anyone used this service?

Thanks for your input.

You don't need to give them the receipts unless they ask for them in an audit. Just keep them safe for 6 or 7 years and that's good enough.

You're better off learning what needs to be done yourself so you can do it yourself each year without paying someone. It would be better to hire an accountant to guide you through it the first year and explain things to you. I wouldn't think it would cost you much more than the likes of paylesstax.ie which would be an impersonal service.

Stratvs

If the non-PAYE income from rents will mean F11 filing then you will need to register for ROS. ( separate to MyAccount ).
The Form 11 is mandatory online filing ( no more paper returns) for all new registrations. Once registered on ROS you can initiate an Income Tax registration. You can then file the Form 11 via ROS. You will have to include all income PAYE and rents on the Form 11. Any tax due on the rentals is then paid through ROS. You can download the ROS offline application to prepare the return and then upload it or you can complete and file the return online. You retain any receipts in event of audit as other poster said. You don't upload anything except the tax return (Form 11)

If you do engage an accountant to do it for you then the accountancy fees for preparing the rent accounts are a deductible expense so the net cost could be halved depending on your marginal Tax/USC rate.

https://www.revenue.ie/en/property/rental-income/irish-rental-income/what-expenses-are-allowed.aspx

Lenar3556

Does the rental income exceed €5,000 annually?

I would suggest get an accountant to do it for you for the first couple of years at least.

A couple of hundred euro a year and it takes the hassle away.

Champ

Lenar3556 wrote: »

Does the rental income exceed €5,000 annually?

I would suggest get an accountant to do it for you for the first couple of years at least.

A couple of hundred euro a year and it takes the hassle away.

Yup the rental income will exceed 5K annually.

I did half consider setting up a sibling to take the excess (it's not going to be massively over 5K).

I think I'll settle for an accountant at least for the first year as it'll help me get use to it.

Thanks all for the feedback and suggestions.