Non declarations of rental income

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Nivey1

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How many years can revenue go back for non declared rental income?
We have only last year been able to cover the mortgage with the rental income. Up til then we had to contribute to cover the mortgage and associated costs. We became accident landlords when we couldn’t sell it and had bought new house, then it went into negative equity and still is.
 
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If I were you I’d get an accountant ASAP. You’ll have to pay what you owe and possible fees, penalties and interest. Have you paid NPPR? The penalties for non-payment of this are punitive.
 
Nivey1 said:
How many years can revenue go back for non declared rental income?
We have only last year been able to cover the mortgage with the rental income. Up til then we had to contribute to cover the mortgage and associated costs. We became accident landlords when we couldn’t sell it and had bought new house, then it went into negative equity and still is.
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They can go back as far as they like in cases of ‘deliberate default’ such as this, formerly known as ‘fraud or neglect’.

You will get some mitigation of the penalties if you come clean to Revenue via a ‘Qualifying Disclosure’. I echo the view that you should contact a tax adviser ASAP.
 
Nivey1 said:
How many years can revenue go back for non declared rental income?
We have only last year been able to cover the mortgage with the rental income. Up til then we had to contribute to cover the mortgage and associated costs. We became accident landlords when we couldn’t sell it and had bought new house, then it went into negative equity and still is.
Click to expand...

As far as they want in Fraud or Neglect cases. Have you been filing returns/claiming reliefs etc each year without declaring the income or have you totally avoided Revenue since you started renting? Do you have records of your expenses associated with the property as well as income? Were the tenancies PRTB registered. Negative equity or capital repayments are not of interest in Income tax calculations. If your rental income exceeded your allowable expenses each year then you may have a tax liability multiplied by however many years you are talking about. Get an accountant and make a disclosure.
 
you will need to contact a tax advisor which will be money well spent . You should be able to backdate the prtb registrations , deduct the mortgage interest and expenses Etc . There will be a number of steps involved . You will end up with a tax liability which will likely be deducted from your tax credits for a number of years. The NPPR is a separate issue to the revenue and is potentially a worse problem
 
Open to correction - I thought NPPR ceased sometime in 2013 when LPT was introduced?
 
True: the OP doesn't say how long they have been renting though. So if post 2013 then NPPR wont apply.

OP - hopefully, you've kept all your receipts & interest certs, take yourself and your box of paper work to a tax agent.

Yes you'll have to pay back taxes, but you'll do better with an agent who knows the ropes and with Revenue as well.

Better to take action now to get it sorted, than have the constant worry niggling at you.
 
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