Tax

Benbaz

Hi all,

I just thought that I’d let anybody that pays rent at the moment know that you can claim an extra tax credit of €284 a year if you ring up the tax office with your PRSI number and give your details (when I say details all she needed to know was where I was living). The cool thing about this is that if you’re renting from a friend it doesn’t affect their tax as you don’t need to give the landlord’s PRSI number unless you want to claim tax back for previous years. But even if you do give the Landlord’s PRSI number it shouldn’t affect their tax as anybody that is renting a room in their house is allowed to take in IR£6000 per annum tax free!!
I applied for my credit last week and it has already been amended. I even got back dated to the beginning of January, an extra €50 this week!!!
So if you don’t already know about this…watcha waiting for!?!?

B.

P.S. Does anybody else know of any similar tax credits that we are all entitled to but not told about??

seamus

You may want to consult with your landlord/flatmates first. Afaik, you give them the address that you're renting, then they check up on your landlord, to see if he's paying tax on his incomes from his tenants.

I've heard of plenty of cases where landlords and tenants have an agreement where they say nothing, and they get cheaper rent - i.e. if the landlord was being forced to pay tax, he'd simply increase his tenant's rent to cover it.

Of course, there's also a lot to be said for signing a rent agreement, but if you're renting in a friend or family member's house/flat, I'd consult with them first before you go charging off to get your tax credits

Officially of course, I'd never endorse tax dodging by Landlords

Victor

Originally posted by seamus
Of course, there's also a lot to be said for signing a rent agreement, but if you're renting in a friend or family member's house/flat, I'd consult with them first before you go charging off to get your tax credits

If you are paying "mammy" rent, it is likely that this amount will be considered a domestic arrangment and not taxable. Hence you wouldn't get the tax credit either.

Originally posted by seamus
Officially of course, I'd never endorse tax dodging by Landlords

Strictly reseved for tenants and family members.

Benbaz

Of course, there's also a lot to be said for signing a rent agreement, but if you're renting in a friend or family member's house/flat, I'd consult with them first before you go charging off to get your tax credits

The thing is about this credit is that EVERYBODY that is renting is entitled to it.
The government introduced it a couple of years ago because of the housing crisis. And in my situation it won't affect my landlord because the tax office didn't ask for my rented address as all my details are registered in my parents address. They only way a landlord gets involved is when/if you try to claim back tax, then you have to fill out a form with your details listing your landlords PRSI no.

B.

RainyDay

Officially of course, I'd never endorse tax dodging by Landlords

Wouldn't it warm the cockles of your heart to see how prevalent the 'nudge & a wink' attitude to tax evasion is in Ireland today. So it's OK for landlords to evade tax, once they share the spoils with their tenants?

Is it any wonder we end up with corrupt politicians in power? As long as we continue to condone 'a little bit of tax evasion' with landlords & tradesmen doing jobs 'for cash', we can't be surprised when our hospitals, schools & roads are all in a mess.