My wife (a PAYE earner) has rental income for the first time in 2022 and I expect the net amount of this (rent-expenses) to be around €6k all going well. She normally fills in her tax credits / small ad-hoc income via an income tax return on Revenue's myAccount service.
Am I correct to say that she needs to:
This doesn't feel quite right as the payments to revenue (per calendar year) would look as follows:
Am I correct to say that she needs to:
- Not complete the Income tax return on MyAccount for 2022 if her rental income > 5k as she's then a chargeable person
- File a form 11 for 2022, but this isn't due for submission until Oct/Nov 2023.
- In this 2022 form 11 she will be liable to preliminary tax but has the option to pay 100% of the prior year liability i.e. €0
This doesn't feel quite right as the payments to revenue (per calendar year) would look as follows:
- 2022: No tax paid
- Oct 2023: Tax on 2022 rent, no preliminary tax
- Oct 2024: Tax on 2023 rent AND preliminary tax (i.e. 2x tax)