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PAYE worker: Paying tax on rental property

  • 28-01-2021 10:30am
    #1
    Higgsy
    Registered Users, Registered Users 2 Posts: 139 ✭✭


    Hi,

    I am looking for some advice if possible.

    I am a PAYE worker who works in Northern Ireland but is resident in the Republic. I purchase another house in the Republic and I am considering renting my old house.

    I was wondering if I rent the old house will I be tax on the rental income of the property on top of what I earn in Northern Ireland as a PAYE worker? So for example:

    I earn £30k in NI on which I pay tax as a PAYE worker in NI.
    I may earn 7k on the rental property.

    Will I be taxed on the combination of my salary and rental income?

    I hope I have explained by situation clearly. I would appreciate any help or guidance anyone has to offer.

    Thanks


Comments

  • #2
    Geuze
    Registered Users, Registered Users 2 Posts: 14,041 ✭✭✭✭Geuze


    If you live in RoI, and the rental house is in RoI, then you will pay any tax due on the rent in RoI.


  • #3
    Higgsy
    Registered Users, Registered Users 2 Posts: 139 ✭✭Higgsy


    Geuze wrote: »
    If you live in RoI, and the rental house is in RoI, then you will pay any tax due on the rent in RoI.

    Thanks Geuze, I probably did not make my question clear.

    In deciding the tax rate on which revenue will tax my rental income will they add it to what I earn in Northern Ireland and then tax me at that rate or will they just tax me on the 7k rental income and determine the rate based only on the 7k.

    I am trying to work out what rate of tax would apply to me.

    Thanks for your response


  • #4
    Geuze
    Registered Users, Registered Users 2 Posts: 14,041 ✭✭✭✭Geuze


    I don't know much about cross-border workers.

    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/income-and-employment/trans-border-workers-relief/index.aspx




    Who qualifies for Transborder Workers' Relief?

    To qualify for this relief you must:

    be tax resident in Ireland
    work in a country that Ireland has a double taxation agreement with
    have paid tax in the other country and are not due a refund of the tax
    be present in Ireland for at least one day for every week you work abroad.
    The employment must be held for a continuous period of 13 weeks in the year.

    You cannot claim this relief if you receive Seafarers' Allowance, Foreign Earnings Deduction (FED) or split year treatment. You also cannot claim relief if you or your spouse or civil partner are proprietary directors of the company you work for abroad.


  • #5
    Geuze
    Registered Users, Registered Users 2 Posts: 14,041 ✭✭✭✭Geuze


    There is an example here:

    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/income-and-employment/trans-border-workers-relief/how-do-you-calculate-how-much-relief-is-due.aspx


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