Tax Calculation Thread

Mr. Incognito · 16-03-2014 10:10pm #1

Unfortunately a lot of posters are posting looking for personalised tax advice.

I.e Here is my salary, what should my tax be. My approach thus far has been to delete/ close/ lock these threads because Boards is not a registered tax advisor service. This has the effect of cluttering up the forum.

We cannot and do not stand over the veracity of any advice given from what are essentially anonymous posters, some are qualified tax professionals, some are tax students, some are essentially chancers who are giving incorrect advice.

As such I am creating this superthread. All threads along those lines will be dumped here and you can take your chances.

If posters want to advertise excel calculators here they can do so openly on the thread. Keep it out of other threads please though

Moved Posts

I have my one bed apt rented out and have a rental income of € 8880.00 and pay out € 9018.96 between mortgage, life assurance for the mortgage and a monthly maintance fee to a property company.
It has been rented since July 2012 firstly for 6 months at € 650.00 pm then from Feb 2013 to present at € 740.00 pm.
What income tax do I have to pay as I don't understand it, I did call the revenue in Dec 2012 who told me to wait until it was rented a full 12 months before doing anything we plan to sell in Feb 2015 so I just want to get everything straight.

Hey everyone,

I set up a company with a partner in 2012, we both own 50% of the LTD company. We are still trading but things did not really go ahead, no work put into the company so we have no profits, no losses, no expenses etc...

I was on Jobseekers Allowance for the full year 2013.

I have to file a Form 11 Income Tax for the year 2013... I didn't think I would have to pay tax on my Jobseekers Allowance...

Have I done something wrong or is this as it should be?

Thanks for the help

maneno · 16-03-2014 10:12pm

You dont pay tax on JA but you do on JB

Alan Shore · 16-03-2014 10:12pm

Tick the box for the PAYE credit and that will cover your liability.

user0022 · 16-03-2014 10:38pm

Thanks Alan, that worked!

I ticked "PAYE Credit"

and now my liability is Zero

Don't really know what ticking PAYE Credit does, can you explain it a bit? And it's ok to tick it? I had not income apart from Jobseekers Allowance in 2013...

Thanks so much

allthedoyles · 16-03-2014 11:41pm

Ticking the paye box does not solve the problem for you .

Paye tax credit is worth 8250e and your JA is 9776e , but even if both amounts were the same , ticking paye is not the answer.

JA is simply not taxable , so ignore it and do not declare it .

user0022 · 17-03-2014 7:31am

PAYE and the Personal tax credit covers it

Alan Shore · 17-03-2014 11:27am

As ATD said if its Jobseekers Allowance then it's exempt and goes in a different box on the form.

Same result but JA is not taxable.

user0022 · 17-03-2014 8:28pm

Yeah, that's what I was thinking...

I put it in this section (PAYE/BIK/Pensions)... I think that's where it's supposed to go.

Thanks for your help with this

Citizenpain · 17-03-2014 11:14pm

That section is for job seekers benefit ... Which is taxable

Job seekers allowance is not taxable . Leave it off the return

allthedoyles · 18-03-2014 1:10am

If you are unsure whether you claimed Allowances or Benefits in 2013 , then you could fill in the attached online form and a statement will be sent to you by post :

https://www.welfare.ie/en/Pages/secure/StatementOfJAJB.aspx

Citizenpain · 18-03-2014 1:00pm

first of all - your mortgage capital repayments are not an allowable deduction -
75% of your interest is allowable (if you ar prtb registered

more info here re what you can deduct
http://www.revenue.ie/en/tax/it/leaflets/it70.html

do seperate calculations for 2012 and 2013 to come up with taxable income for both years

Are you a paye employee? you might get away with filing a form 12

you will pay tax at 41% if you are on the high rate already
PLUS PRSI
PLUS USC

so potentially 52% of any rental profit you have will go in tax

TrishSimon · 18-03-2014 1:14pm

Citizenpain wrote: »

first of all - your mortgage capital repayments are not an allowable deduction -
75% of your interest is allowable (if you ar prtb registered

more info here re what you can deduct
http://www.revenue.ie/en/tax/it/leaflets/it70.html

do seperate calculations for 2012 and 2013 to come up with taxable income for both years

Are you a paye employee? you might get away with filing a form 12

you will pay tax at 41% if you are on the high rate already
PLUS PRSI
PLUS USC

so potentially 52% of any rental profit you have will go in tax

I am a PAYE employee on the lower rate as my salary is 31K so after the deductions I must pay 41% tax plus USC & PRSI ? maybe I am confused.

Citizenpain · 18-03-2014 1:36pm

ok - the lower rate band is €32,800 ( if you are single / or married and your spouse hasnt trransferred any of their band to you)

so in each year if you have a rental profit - the first 1800 ( 32800 - 31000 ) will be at 20% Tax - anything over will be at 41 %

PRSI is 4% of the profit each year
USC is 7% of the profit each year

TrishSimon · 18-03-2014 1:54pm

I am not making a profit, I pay out 9198.96 and take in 8880.00 rent.
My boss has given me a sheet he uses to work out his income tax to be paid so I am working on that.
I'm still confused by your reply above sorry I just dont seem to understand it.
I am deducting all my expenses from my rental incomes but not the actual mortgage payment and from what I can understand I then calculate it at 20% plus 11% for PRSI & USC.

Citizenpain · 18-03-2014 2:05pm

Sorry I meant Taxable Profit !

Tax 20% plus 11% for PRSI & USC. is correct as long as your Taxable profit is less than 1800

It would be easier to give you guidance if you put up your numbers separately for 2012 & 2013

Rental Income XXX
Minus
75 % of Mortage Interest (ONLY IF PRTB REGISTERED in 2012 & 2013)
Other expenses mgt fees etc

Mr. Incognito · 18-03-2014 2:22pm

I normally don't allow personalised calculations.

There are plenty of online calculators out there to help you work out your taxable income.

There are a few posters here with them in their sigs.

I don't stand by the veracity of them. If you have expenses in excess of your income you won't be paying any tax on it but I would guess those expense include the mortgage which you cannot deduct

In short- you have to do a rental computation

Rent Less Allowable Deductions- to see what is allowable read the guide to rental income in the stickies.

Mortgage NO. Life Assurance re Mortgage-= NO. Management company fees- Yes.

TrishSimon · 18-03-2014 2:43pm

Thanks I'm going to stick to the excel sheet my boss has sent me on it has all of the calculations in it, he owns a few places and said he always uses this format. I just have to adjust the tax amount from 41% to 20% as obviously he is on the higher rate.

Citizenpain · 18-03-2014 3:05pm

does it have Mortgage capital repaymensts and Life Assurance re Mortgage ?
if it does --- dont use it

PRTB reg fee is also deductable

TrishSimon · 18-03-2014 3:30pm

Citizenpain wrote: »

does it have Mortgage capital repaymensts and Life Assurance re Mortgage ?
if it does --- dont use it

PRTB reg fee is also deductable

No it basically has the rental income less deductions etc..so I will see where we end up after that but thanks for the advice.

TrishSimon · 19-03-2014 10:55am

Mr. Incognito wrote: »

I normally don't allow personalised calculations.

There are plenty of online calculators out there to help you work out your taxable income.

There are a few posters here with them in their sigs.

I don't stand by the veracity of them. If you have expenses in excess of your income you won't be paying any tax on it but I would guess those expense include the mortgage which you cannot deduct

In short- you have to do a rental computation

Rent Less Allowable Deductions- to see what is allowable read the guide to rental income in the stickies.

Mortgage NO. Life Assurance re Mortgage-= NO. Management company fees- Yes.

Thanks yes I have done that I was also told I can deduct the interest from the mortgage paid so am going to check that out also.

Citizenpain · 19-03-2014 11:13am

you can deduct 75 % of the interest paid - if you are prtb registered

http://www.revenue.ie/en/tax/it/leaflets/it70.html

TrishSimon · 19-03-2014 11:23am

Citizenpain wrote: »

you can deduct 75 % of the interest paid - if you are prtb registered

http://www.revenue.ie/en/tax/it/leaflets/it70.html

Yes thanks I am registered with the prtb but have forgotten my login details so will sort that all tonight, it has greatly reduced the amount I need to pay thanks !

Slipshaney · 24-03-2014 12:27pm

Firstly, Im not great when it comes to all things tax related. I received notification from my employer (via revenue) that my tax credits are being reduced by about half. I havent made any changes that I know of, the only thing I did recently was claim back on dental expenses for the year 2013. Can anyone help on this?

I am single, a PAYE worker and not claiming rent relief, tax credit for a dependent relative, home carers credit, etc

prettyrestless · 24-03-2014 1:25pm

Are you single/married?
Are you a PAYE worker?
Do you claim rent relief, tax credit for a dependent relative, home carers credit, etc?

Slipshaney · 24-03-2014 1:27pm

I am single, a PAYE worker and not claiming rent relief, tax credit for a dependent relative, home carers credit, etc

relax carry on · 24-03-2014 1:29pm

Slipshaney wrote: »

Firstly, Im not great when it comes to all things tax related. I received notification from my employer (via revenue) that my tax credits are being reduced by about half. I havent made any changes that I know of, the only thing I did recently was claim back on dental expenses for the year 2013. Can anyone help on this?

I am single, a PAYE worker and not claiming rent relief, tax credit for a dependent relative, home carers credit, etc

Did you receive a P21 balancing statement for 2013 stating that there was an underpayment which would be collected by reducing your credits?

Slipshaney · 24-03-2014 1:35pm

im not sure to be honest - I recall having to send on my P60 to them - would this be right?

How would an underpayment have happened - should my employer not have been looking after this?

relax carry on wrote: »

Did you receive a P21 balancing statement for 2013 stating that there was an underpayment which would be collected by reducing your credits?

relax carry on · 24-03-2014 3:43pm

Slipshaney wrote: »

im not sure to be honest - I recall having to send on my P60 to them - would this be right?

How would an underpayment have happened - should my employer not have been looking after this?

Underpayments can happen in many different ways, (multiple jobs, incorrect credits or rate band, taxable DSP payments etc). Normally all is order though.
You need to check your P21 for 2013. If you used the online system, then it may be in your request history. It may also have been sent to your postal address.
Quickest way to sort this is call Revenue.

Slipshaney · 24-03-2014 3:51pm

ok thanks for that - ive tried calling revenue already but it seems to be all automated - i cant get through to a human!

Murphj7 · 25-03-2014 12:12am

So my sister has bought a house in Wexford where she is from but rents and lives in Dublin. The mortgage will be 60 euro less than rent meaning profit.
When declaring the house is for rent what is taxed. The 60 euros or full value rent? Thanks

CIARAN_BOYLE · 25-03-2014 12:49am

Murphj7 wrote: »

So my sister has bought a house in Wexford where she is from but rents and lives in Dublin. The mortgage will be 60 euro less than rent meaning profit.
When declaring the house is for rent what is taxed. The 60 euros or full value rent? Thanks

75% of the rent is allowable for rent
Other expenses like repair and maintenance and prtb can be claimed against rental income.

Tax Calculation Thread

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