Acting as Agent for Non-Resident Landlord

B

bauble

Guest
Hi

A family member moved abroad in Jan 2009 and has been renting his house out since the middle of 2008. The tenant has not withheld 20% of the rent. He would rather avoid causing hassle for the tenant so has asked me to act as agent. As I understand I receive the rent (100%) and can pass this full rental over to him but I file a tax return under self assessment rules for the rental income.

My question is, do I essentially file the tax return as if it was my rental property? As he is currently still ordinarily resident in Ireland he will be filing a tax return himself on his worldwide earnings but I am assuming he would not include the rental income on his return in that instance?

Also, can I only be nominated as agent from the time the tenant starts paying the rent into my bank account or can I assume I’ve been agent for 2010?

Thanks
 
bauble said:
Hi

A family member moved abroad in Jan 2009 and has been renting his house out since the middle of 2008. The tenant has not withheld 20% of the rent. He would rather avoid causing hassle for the tenant so has asked me to act as agent. As I understand I receive the rent (100%) and can pass this full rental over to him but I file a tax return under self assessment rules for the rental income.

My question is, do I essentially file the tax return as if it was my rental property? As he is currently still ordinarily resident in Ireland he will be filing a tax return himself on his worldwide earnings but I am assuming he would not include the rental income on his return in that instance?

Also, can I only be nominated as agent from the time the tenant starts paying the rent into my bank account or can I assume I’ve been agent for 2010?

Thanks
Click to expand...

This arrangement shouldn't really affect your own tax affairs in any way.

Once you are nominated as a collection agent (ie your family member registers you as such with Revenue) a separate PPS number will be issued to them.

It is ultimately this person's responsibility to file returns under that number. You will only become accountable for same in the event that they neglect their responsibilities by failing to file a return or failing to pay tax bills.

There is no need for you to physically receive the rent payments or to have anything to do with collecting it.

I don't know if this answers your questions but feel free to post more questions if you feel like it. To be honest, you shouldn't have to worry about this, and your family member should really be taking responsibility for all the admin issues arising, especially as you have done them a favour of allowing yourself to be nominated as collection agent. If they're not 100% sure of their tax compliance responsibilities, you should insist that they engage appropriate professional advice on these responsibilities, as a means of protecting you. This is because it is you who will be picking up the pieces if the arrangement goes pear-shaped.
 
T McGibney said:
Once you are nominated as a collection agent (ie your family member registers you as such with Revenue) a separate PPS number will be issued to them.

It is ultimately this person's responsibility to file returns under that number. You will only become accountable for same in the event that they neglect their responsibilities by failing to file a return or failing to pay tax bills.
Click to expand...

Hi,

Thanks for your reply. So, to clarify, the family member nominates me as agent but they still file the tax returns? This sounds different to what I've gathered from revenue.ie?

From Revenue.ie A Revenue Guide to Rental Income - IT 70
Where an agent resident in the State, is appointed by the non-resident landlord to manage the property and the agent is collecting the rents, the rents must be paid gross to the agent. The agent is then chargeable to tax on the rents as Collection Agent for the landlord and is required to submit an annual tax return and account for the tax due under Self Assessment. Leaflet IT10 Guide to Self Assessment* provides more detailed information.
 
I think you may be misreading IT70. Note the phrase "...and the agent is collecting the rents...".

As I pointed out earlier "There is no need for you to physically receive the rent payments or to have anything to do with collecting it."

If you want to involve yourself in this, feel free, but the simpler option from your viewpoint is the one I outlined earlier.
 
T McGibney said:
Once you are nominated as a collection agent (ie your family member registers you as such with Revenue) a separate PPS number will be issued to them.
Click to expand...

I am planning to register my mother as my collection agent. I already have a PPS number - will i [we] be issued another new one when I register her?

many thanks

paddytt
 
Bauble just you collect rent and act as 'agent' by looking after the property but let the owner take care of the taxes. All the owner has to do is file a tax return with the rental income and this should have nothing to do with you.

I presume the owner will be paying you for your services.
 
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