Revenue owed 10k for two rentals - paye worker

D

DAVID1974

Registered User
Messages
15
Hello,
I owe the revenue circa 9,500 for tax due on rental properties,I spoke with Revenue who stated as a PAYE worker I can pay half in October 2011 and the balance can be taken off my wife and I tax credits over next 2 years.

I have spoken to another person (non revenue) who stated I should endeavor to pay in full as deducting tax credits over 2 years will screw me with future rental income reliefs. The whole problem lies in the fact I do not have 9500€,I could stretch 5,000€ but I would be very stretched to pay it.

Do revenue charge interest and penalties on late payments?

Any advice out there?
 
This amount of tax liability looks very high, unless the rentals in question are extremely profitable or cover a number of years. Are you sure your tax returns which give rise to the liability are completed correctly and you have claimed for all allowable deductions credits etc.
 
Hi David,

Sorry to hear about your prediciment.

First of all, the fact that you are asking this question on this forum would suggest that you don't have a tax agent/accountant and that you may have prepared the rental/tax calculations yourself. It is possible that you may have missed something and that the liability maybe less than €9.5K.

Assuming for a moment that the figures are correct it sounds to me like Revenue are giving you the opportunity to pay the tax without the imposition of interest and penalties. I may be wrong but that's me reading between the lines based on other cases I've dealt with.

Not sure what your non-revenue source is talking about as it doesn't make any sense. I would sugggest running with Revenue's suggestion or even leave your tax credits as are and just pay the balance by DD over 12/24 months.

Don't forget you might have tax liabilities for 2010 and future years too so you should factor this in to any agreement you make with Revenue from cashflow perspective.

I might be no harm to have a 20 minute talk with a tax advisor about this.

HS
 
The true rental property tax liability was 4000€, the balance was due to an incorrect submission by me on the PAYE website for healthcare expenses etc.
 
DAVID1974 said:
The true rental property tax liability was 4000€, the balance was due to an incorrect submission by me on the PAYE website for healthcare expenses etc.
Click to expand...

If you are happy that the figures are correct then I would run with the Revenue suggestion for payment...based on what you have said!
 
DAVID1974 said:
deducting tax credits over 2 years will screw me with future rental income reliefs.

Do revenue charge interest and penalties on late payments?
Click to expand...

Could you give a bit more detail on how that will mess around with future rental income reliefs.

Yes revenue charge interest and penalties, but maybe they are not doing so here as it seems it was a genuine error in your submission of health care expenses.

Nevertheless you don't have the money so the revenue suggestion seems very helpful.

Ideally as a landlord you need to be saving any profit you make each month into a separate account so you can pay your tax liability.
 
Your right Bronte RE saving for such issues, however, the + surplus on the rent is swallowed up paying the mortgage on my PPR.
 
You must log in or register to reply here.
Back
Top