First time form 11, nearly 70% tax on rental income estimate!

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Have done partners tax return last few years and bills were more or less as expected, first time doing mine this year.

taxable rental income of 12k, ROS site is calculating a liability of over 8k. Apart from the available deductions to
reduce the rental income to reduce the taxable income I’ve not done anything else that I’m aware of.

have I gone badly wrong somewhere or is this indicating that I underpaid PAYE last year somehow.

I can scrape together 2019 but can’t pay preliminary for 2020 at this rate of tax, have I any option except an accountant? Had
bad experience and try to avoid them if at all possible.
 
Please define the 70% tax. The rate of IT+PRSI+USC is < 70% even if you earn Michael o Learys levels of income.
Suggest hire Tax consultant, which is BTW Tax deductable
 
Have you claimed all your tax credits, check you've got your PAYE tax credit.

If you want to see whether your PAYE paid is right, just zero out the rental profit so that ROS just calculates liability based on your PAYE income.
 
fidelcastro said:
Please define the 70% tax. The rate of IT+PRSI+USC is < 70% even if you earn Michael o Learys levels of income.
Suggest hire Tax consultant, which is BTW Tax deductable
Click to expand...

I think the OP knows that, hence the thread.

If they're competent to calculate taxable rental income correctly then they shouldn't need to pay someone to complete a tax return.
 
Yep, have paye tax credit in there, will try to zero out rental and see what it calculates, thanks for idea.

Fidel the definition of nearly 70% tax is that they want 8200 from me on 12000 taxable income. I know it‘s not right, hence the thread!
 
torblednam said:
Have you claimed all your tax credits, check you've got your PAYE tax credit.

If you want to see whether your PAYE paid is right, just zero out the rental profit so that ROS just calculates liability based on your PAYE income.
Click to expand...

thanks for that, it helped me track down that I had 2k HRI tax credit in 2019 that they had on the form, but I needed to copy it into one of the boxes to actually apply it. Otherwise it was being looked for in back tax, even though they had already given me the credit. They really should make the bloody thing a bit easier
 
fidelcastro said:
Perhaps. But including your credits is pg1 of basics
Click to expand...

Exactly, and therefore for anyone reasonably financially literate it should not require paying a tax consultant. Filling in a basic tax return is at worst a fiddly task, not worthy of paying €300 + VAT for someone else to do it if it can be avoided.

It's very easy, now that the form has some details pre-filled, to assume that some things are automatically applied and then get a fright when you hit calculate.
 
That seems very high. I do my wife’s tax return on her rented house and on 11k rental income the tax bill was around €3600.
I assume you have the mortgage interest deducted, that is normally a nice chunk. And we are barely breaking even at that. It’s a noose having a second house these days. Haunted we have excellent tenants.
 
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