1st time Landlord mid '10 not registered with PRTB & not paying tax - consequences?

+another 1! Offered advice in the misguided belief that the OP was a naive new landlord so am disappointed to see that some calculation was involved in an effort to deceive the authorities that this was their PPR :(
 
shesells said:
+another 1! Offered advice in the misguided belief that the OP was a naive new landlord so am disappointed to see that some calculation was involved in an effort to deceive the authorities that this was their PPR :(
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There was no calculation involved to deceive anyone. The utility bills that are still going to the house (e.g. car insurance) are only still going there because there has been no renewal yet as it hasn't been a year since I moved out. That's all.
 
Rupert1 said:
There was no calculation involved to deceive anyone. The utility bills that are still going to the house (e.g. car insurance) are only still going there because there has been no renewal yet as it hasn't been a year since I moved out. That's all.
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You should notify insurance companies when you change address and not wait for your renewal to come up to do it. For example, if you told your car insurance company that your car is always parked outside your old address then their calculation of the premium will be based on this. If you have an accident or if your car is stolen or damaged and the insurance company find out that you are no longer living at your old address your insurance will be void and worthless.
 
I will ring the insurance company and let them know the house is rented.

So if I register with PRTB, what else do I need to do to be aboveboard?
 
not at source, sorry -- you are allowed offset 75% of the interest paid against your rental income however.
The risk for you is that if you have a tracker mortgage the bank might have something in their T&C where you might lose it if renting it out
 
I don't have a tracker mortgage.
I don't have a clue about offsetting interest or anything like that.

Why can't I just register with the PRTB, switch my house insurance to landlord insurance, and leave it at that?
 
Because you are not entitled to tax relief at source and must cancel this straight away. You are obliged to complete a tax return each year and as part of that will need a mortgage interest certificate from your mortgage provider, this will reduce your tax liability.

It confuses me that you say some bills only go to your house because there has been no renewal but you also said that that makes it look like you live there..which is why it appeared that there was some calculation.
 
if only it was that simple.....

its not too bad though; as things stand you are claiming a tax relief which you are not entitled to -Mortgage interest relief is only available for your principal private residence.

you will need to pay tax on your 2010 rental income in October 2011- the tax is calculated on Rental Income less 75% of your mortage interest (not capital) paid less capital allowances on furniture fixtures and fittings (8% of cost) and any other costs.

there is a guide on the revenue website which i suggest you download
 
Guys, OP says he is clueless and he certainly sounds like it:) so I think finer details like capital allowances, fixtures etc will only confuse him even more.

I generally think that it's quite possible to manage a tax return oneself, and I have always managed it and never used an accountant, but I think in OP's case an accountant is indicated - OP won't be able to file the tax return properly on his own. And he doesn't sound as if he is going to learn all about tax in the meantime - there are loads of information on the Revenue website, but he keeps coming back here with questions like "what do I do next?"

So I think the best advice for him would be "hire an accountant".
 
Rupert1 said:
I thought I was entitled to mortgage interest relief if I register with the PRTB thingy?
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You really need to get your act together on this. Look up this website under investment property, then look up revenue.ie for tax on rental income and look up irishlandlord.com for advice.

There are two types of mortgage interest relief.

TRS - tax relief at source

This is for people who live in their own home and is deducted by revenue directly with your mortgage payments in the bank. You need to contact revenue and cancel this. Do not contact your bank.

Mortgage interest relief @ 75%

This is for landlords, you take your yearly mortgage interest and are allowed to deduct 75% from your rental income.

Wear and Tear on furniture and fittings

This is at 12.% for 8 years meaning you write off 100%.

Insurance changes

Should only be done in writing with proof of posting or delivery

Utilities

Car insurance is not a utility. For what purpose did you post the fact that you can prove you live there still?

How are you going to pay tax on rental income profit (if any)?

Accountant

You need one
 
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