Ptrb question / scenario

I am looking for some advice, and apologies if this may seem repetitous, but I cannot find the exact answer to my question.

I rented my house (principle private residence) for 2 years while I worked overseas. I was non resident for the 2 years in question. I had a letting agent arrange the let and the lease, but the rent was paid directly to me. This is where it gets complicated;

The letting agent assured me that he registered the property on my behalf with the PTRB, but there is no record of the same.

The tenant moved out in February this year, and I moved back in.

The tenant had done a good bit of damage that was above normal wear and tear, and while trying to be as reasonable as possible (I did not include any cleaning costs etc) identified the broken items and put costs to the same. All in all it amounted to approx 50% of the deposit. The tenant would not accept this offer, and has not made contact since. Strange but true.

I just received a letter from the PTRB, who have informed me that property was not registered with them, which is a surprise to me as per above. Obviously the ex tenant has informed the PTRB that there is a dispute, and before they can get involved in the same I must be registered with them.

Now for my questions ;

1) As the individual is no longer a tenant, and the property is no longer rented since Feb 2010, do I need to register with the PTRB?

2) I have made a tax return in the UK (using PWC), and was advised at the time that as I was non resident in Ireland it was the tenants responsibility to withold tax;

Where rents are paid directly to a person whose usual place of abode is outside the State, the tenant is obliged to deduct income tax @ the standard rate from the payment (section 1041 TCA 1997). The tenant then gives the landlord a certificate of the tax deducted on form R 185. The landlord is entitled to claim relief for expenses which are usually allowed in arriving at the rental profit and may be entitled to a proportion of personal allowances.

However, the tenant has not done this, and cannot issue me with a R185. Who is liable for the tax? Tenant or Landlord.

3) Any recommendations of how to deal with this tenant, who I believe is being unreasonable?

... 1) As the individual is no longer a tenant, and the property is no longer rented since Feb 2010, do I need to register with the PTRB? ...

Click to expand...

I don't see what you gave to gain by registering now as registration cannot be retrospective; save yourself the fee. Not being tegistered does however mean you cannot deduct the mortgage interest paid from your tax bill.

... 2) I have made a tax return in the UK (using PWC), and was advised at the time that as I was non resident in Ireland it was the tenants responsibility to withold tax; ... However, the tenant has not done this, and cannot issue me with a R185. Who is liable for the tax? Tenant or Landlord ...

Click to expand...

The non-resident (at the time) landlord. If the tenant had deducted the tax, remitted it to the Revenue and issued the R185, the tenant's deduction is treated as a credit against the landlord's eventual tax bill.

... 3) Any recommendations of how to deal with this tenant, who I believe is being unreasonable?

Click to expand...

Send all the evidence of the damage (pictures, valuations, copies of invoices, copy of lease, etc) to the PRTB and inform them in writing that you view the tenant's complaint as vexatious, that you have money to refund to him but that he hasn't made contact. BTW, cleaning is not an item you can deduct from a tenant's deposit.

Do you have anything in writing from your letting agent stating that they had registered you with the PRTB. Perhaps it is mentioned in your contract with them or a fee invoice from them. The fact that they have not registered you with the PRTB and the tenant has moved out could cost you i.e. as mathepac points out, it is unlikley that you will get a deduction for mortgage interest when calculating the net rental income assessable to Irish income tax (unless the PRTB or Revenue allow it by concession given your particular circumstances, this is not likely!). This is matter I would be taking up immediately with the letting agent.

If the property was rented since 2008 then you need to get your 2008 Irish tax return submitted asap. Your 2009 tax return is due by 31 October this year. You will probably also need to amend your UK tax returns to include a credit for Irish tax if it arises.

[broken link removed]

Thanks guys for the advice, pretty much the same as I was thinking.