Preliminary Tax?

J

Jane1

Registered User
Messages
48
Hi I am a PAYE worker and I have one rental property. Each March once I get my P60 from the previous year I do my taxes myself which includes my rental property which is making a loss. I thought my taxes were up to date for 2008 however last month I got a letter from the tax office saying I had not filed my preliminary tax for 2009. Could anyone please explain this to me. Should I be filing the rental property separately. Thanks in advance!

J.
 
Hi

From what you are saying you would not have any preliminary tax to pay.

This appears to be an automatically generated correspondence and I would return it as nil.

Kind Regareds

dbran
 
Jane1, one thing to watch re the 2009 preliminary tax is that the payment due had to take account of the income levy. This was the case whether basing the payment on 100% of 2008 or 90% of 2009. Even though the income levy was not in operation in 2008, a preliminary tax payment based on 100% of that liability had to be calculated on the basis that it had been. Therefore the rental profit/loss had to be calculated without taking into account capital allowances on fixtures and fittings and/or losses forward from a prior year for the purpose of the income levy. If still a rental loss then there should be no issue and you should just confirm with Revenue that no preliminary tax was due.
 
Also dont forget that for 2009 unlike previous years, you can only offset 75% of your mortgage interest against tax. So are you sure you are still making a profit !!!???
 
Thanks guys. I have done my taxes for 2008 already. I missed the Preliminary taxes for 2009 as I did'nt understand it. Next year when I do my taxes for 2009 I will be making a profit when you factor in the 75% interest offset.

J.
 
You must log in or register to reply here.
Back
Top