Universal social charge on rental income

Net. As in gross rents received minus deductible expenses such as interest (75%), repairs etc...
 
mandelbrot said:
Net. As in gross rents received minus deductible expenses such as interest (75%), repairs etc...
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Yep I would agree !!!!!!!!
Thats why i thought it was strange that The ROS calculator has the figure as in gross rents received minus deductible expenses as you mentioned....... all execpt CAPITAL ALLOWANCES.
I emailed a revenue officer and this seems to be confirmed.
Surely that cant be correct?

Also just wandering on the P60 why my "gross pay for universal social charge purposes" is much higher than my total pay figure.

many thanks......
 
It is entirely correct, because capital allowances aren't a deduction in arriving at income for USC purposes (and if you look at the tax return you'll see they are entered separately from the net rents). A lot of people avail of capital allowances (on industrial buildings etc), as a means of sheltering their rental income and thereby avoiding tax. The whole point of the USC is to widen the net, and charge income that otherwise was going untaxed.

Ditto with your P60, if you have a pension / PRSA / permanent health insurance contribution going through payroll, then while you may be getting a deduction for income tax you will still pay USC on it.
 
mandelbrot said:
It is entirely correct, because capital allowances aren't a deduction in arriving at income for USC purposes (and if you look at the tax return you'll see they are entered separately from the net rents). A lot of people avail of capital allowances (on industrial buildings etc), as a means of sheltering their rental income and thereby avoiding tax. The whole point of the USC is to widen the net, and charge income that otherwise was going untaxed.

Ditto with your P60, if you have a pension / PRSA / permanent health insurance contribution going through payroll, then while you may be getting a deduction for income tax you will still pay USC on it.
Click to expand...

Thanks for that reply..... Any idea where on the revenue site I can find this info. Thanks
 
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