When preparing tax returns I often have to remind my cli
ents that they may not be claiming for all allowable expenses against their rental income.
I have prepared a checklist which may assist landlords in ensuring they are claiming for everything they should. Remember all expenses should be wholly and exclusively for the business purpose and not of a capital nature.
- Accountants Fees (For preparing rental accounts)
- Advertising fees for advertising the property. (Invoice from Daft or a local newspaper)
- Rates and levies (Water rates are often missed)
- Repairs (These should not be of a capital nature)
- Refuse charges
- Insurance on the property
- Management fee’s (Example the actual cost of collecting the rent)
- Services paid for by the landlord (Examples: Gas, Electricity ect)
- Wear and tear on fixtures and fittings (Example: Carpet, cooker, central heating)
- Maintenance Costs (Landlord can not charge for her own time so its worth while paying someone to cut the grass or clean the apartment in between tenants!)
- Interest paid on loans to purchase, repair or improve the property. (75% allowable, Everyone claims for their mortgage interest but a lot of landlords forget to claim for the interest on loans the may have on repairing the property)
- Legal fees to cover the drawing up of leases or the issue of solicitors letters to tenants who default on payment of rent.
- Certain mortgage protection policy premiums with
This list is obviously not conclusive.
If you would like one of our Tax experts to prepare your rental income tax return from as little as €195 please contact us now on 01-4800531
The following changes are contained in Budget 2011
• Replacement of the current RCT rate of 35% with a tworate withholding system on a revenue neutral basis:
o 20% rate for subcontractors registered for tax with an established compliance record;
o 35% rate for subcontractors not registered for tax;
• Abolition of the monthly repayment system and replacement with an offset system;
• Strengthening of the reporting system for RCT Principals in order to enhance compliance and reduce the opportunities for fraud.
More complete details are expected in the Finance Bill which will clarify the criteria for the application of the 20% and 35 % rates. It should also contain more details on proposals to replace the current system of periodic repayments of RCT with a system of offsetting RCT against tax liabilities.
It should be noted that RCT may impact on many industry sectors, including the public sector and telecommunications industry. It is not always limited to the
traditional RCT industries of meat processing, construction and forestry
A tax clearance cert may be required for a variety of reasons including when doing business with a government department or semi state body.
Apply is very simple. Firstly ensure your taxes are in order and paid up to date. If for what ever reason they are not you will need to speak to your local revenue office before making the applications.
To apply simply click here.
As always if there is anything I can do to help please feel free to email or phone
firstname.lastname@example.org / 091 -442882
What expenses can I claim for?
You can claim for any business expense, which you have incurred in order to earn your profits. These expenses are normally referred to as revenue expenditure. Revenue expenditure is your day to day running costs and covers such items as:
Purchase of goods for re-sale, Wages, rent, rates, repairs, lighting and heating, etc., Running costs of vehicles or machinery used in the business, Accountancy fees, Interest paid on any monies borrowed to finance business expenses/items, Lease payments on vehicles or machinery used in the business.
If you are registered for VAT the expenses you claim should be exclusive of VAT.
What about Food and Subsistence Expenses?
It is a long established principle that the cost of meals taken at the place of business is not allowable for tax purposes. In addition, expenses incurred on meals consumed away from the place of business are, in general, not wholly and exclusively laid out for the purposes of the trade or profession since everyone must eat in order to live. Costs of meals may be allowable where a business by its very nature involves travelling, as in the case of self-employed long distance lorry drivers, or where
occasional business journeys outside the normal pattern are made.
This post is taken directly from revenues guide IT48
If you require any assistance with taxation please do not hesitate to contact Ralph for further advice
email@example.com or phone 091-442882
Rent a Room Relief – where a room (or rooms) in a person’s principal private residence is let as residential accommodation, gross annual rental income of up to €10,000 (€7,620 in 2007) is exempt from tax. This does not affect an individual’s entitlement to mortgage interest relief or CGT exemption for a principal private residence.
To get rent a room relief:
The total (gross) rent you get from your tenant (or tenants), which includes sums the tenant pays for food, laundry or similar goods and services, cannot exceed €10,000. If you get rental income over and above this amount, you are not entitled to the relief
Your home must be in Ireland and must be occupied by you during the year of assessment as your principal private residence.
You cannot deduct expenses from your rental income to qualify for rent a room relief. If you qualify for rent a room relief, the income you get from renting a room in your home is not liable to PRSI, the health levy, the income levy or income tax. However, it must be included on your annual income tax return.
If you require any further information please do not hesitate to contact Ralph on
firstname.lastname@example.org or 0863336665
Remember to check if you are due a tax refund on www.brownenvelope.ie
If you are a principal contractor, You must deduct Relevant Contracts Tax at 35% from payments made by you to an unauthoriesed subcontracted you have engaged to carry out relevant contract for example: meat processing, construction operations or meat processing on your behalf.
You do not need to deduct RCT payments from a subcontractor who produces a C2 (Subcontractors certificate)
If you are an unauthorised subcontractor, you can claim credit for RCT paid by you against your tax liability. You may also claim an interim refund of RCT paid if the tax payable for the likely period exceeds the proportionate liability for the entire tax year.
Distinguishing employee’s from contractors is very topical at the moment. Principal contractors should be extremely careful in this area as they would be liable for the PAYE, interest and penalties IF it was found that their contractors were actually employees.
If you require any assistance or advice with RCT please do not hesitate to contact
or phone Ralph on 086- 3336665