Is this right. USC and non-resident?

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puppy

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Like many wives I have got lumbered doing my husbands tax return. It is for 2012 so already late.

Situation is:
He is British, lived in Ireland from 2006-Dec2011
Now as a family living in Switzerland
We have rental income in Ireland, everything else is from his Swiss employer.

Is it correct that we have to pay full USC and income tax as if we lived in Ireland (minus the relatively small amount of tax we have paid here). The online form 11 has just calculated it - and it is not a happy number at all.

At what point can we just pay tax/USC on the Irish income
 
Yes non residents have to pay USC. What is your point about 'tax here' being deducted?

Can you give us all the figures please. I assume you'll only be paying income tax at the lower rate.
 
'tax here' being in Switzerland. i.e. we pay relatively less tax in Switzerland for the same gross income.

There is tax at the higher rate.
when converted from CHF the numbers are
gross €85K
tax paid in Switzerland €18k
Rental income in Ireland 9K
allowable expenses on rental 10K
 
puppy said:
Like many wives I have got lumbered doing my husbands tax return. It is for 2012 so already late.

Situation is:
He is British, lived in Ireland from 2006-Dec2011
Now as a family living in Switzerland
We have rental income in Ireland, everything else is from his Swiss employer.

Is it correct that we have to pay full USC and income tax as if we lived in Ireland (minus the relatively small amount of tax we have paid here). The online form 11 has just calculated it - and it is not a happy number at all.

At what point can we just pay tax/USC on the Irish income
Click to expand...

There should be no USC liability here for a non-Irish resident with €9k gross Irish rental income before deductions.

I think you are making the basic error of including his Swiss income in the Irish tax return. This is not necessary.

As a non-resident with Irish rental income, there are certain procedures you must follow in relation to income tax. These are summarised here: http://mcgibney.ie/2012/12/24/irish-property-living-abroad-what-to-do-about-tax/ In overall terms, your tax liability on a non-resident should not be particularly burdensome if you comply with these procedures.

If you don't know exactly what you are doing in relation to your tax return, it may be a wise move to get professional help in preparing and filing the return.
 
Thank you T_McGibney. will read the link now.

Currently I myself, am doing the tax return and it is so much more complicated than the one I did when we lived in the UK. Even when I read the guidance it seems impossible for an ordinary person with a modicum of intelligence to understand.

I am also starting to think that getting professional help would be good.
 
I agree with the previous posts.

As a non-resident with less than €10,036 net Irish Rental income, you should have no liability to Irish PRSI or USC.

By net Irish Rental Income, I mean income less allowable expenses but before deducting capital allowances, if any.
 
So does that mean I don't need to fill in anything on the Foreign Employments section of Foreign Income on Form 11? This is definitely where I am getting confused
 
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