Surrendering rent tax credit?

M

maxol

Registered User
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Hello. My LL has asked me to give up my claim to rent tax credit so he can claim the house as his PPR and thereby minimise the effects of recent budget changes to his finances. He is concerned they are going to make it difficult for him to sustain things. Thing is I am very happy where I am and want to stay.

What are the ramifications and should I be asking for rent reduction or some such deal in return?

Thank you
 
Is it actually his PPR? I presume not. In which case he is asking you to collude with him in tax evasion and you are asking what sort of quid pro quo you should get for this?
 
Judgements abound!

No. I was asking what did it mean in real terms. A more polite answer would have been..it means tax evasion. I didn't know that. I thought it was a bookkeeping exercise designed to minimise costs. That's different from being illegal.

And to be honest I am more concerned with how it might concern me legally. If he has different moral values that's his issue not mine.
 
Clubman isn't judging, but merely pointing out certain facts to you.

The last sentence of your 2nd post is at odds with your first post- you started off asking for advice as to what you should get in return for giving up the tax credit, but when you felt like Clubman had called you out over being willing to collude in tax evasion, you suggest you want legal advice, which wasn't what you started out looking for....

My legal advice would be keep claiming your rent tax credit, it's none of your LL's business, just like it's none of your business if he wants to lie / fudge things on his tax return.
 
Judgements abound!
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If it's not his PPR and he approached you with the scheme outlined in the first post then I find it difficult to believe that anybody could fail to cop this as an attempt at tax evasion/fraud.
 
Jese I genuinely wasn't sure if it was an accounting exercise designed to maximise his reliefs. I no nothing about TRs or whatever it is he needs to claim.

When I say legally I mean..am I likely to be doing anything illegal or fraudulent if I had agreed(which I didn't, I said I needed to get advice). I know he was a reluctant LL and us not making profit so I was just seeing if a simple paperwork exercise would help (I wasn't sure if there were 'evasion' implications) and all based on the fact I dint want him to have to tell me he can't afford to be LL anymore because I want to keep living here.

Now that may sound dumbass to some but it's genuine.
 
maxol said:
Jese I genuinely wasn't sure if it was an accounting exercise designed to maximise his reliefs. I no nothing about TRs or whatever it is he needs to claim.

.
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The tax system is complex and if you are not a landlord you wouldn't know about any of this. A lot of my own tenant's over the years have to get help filling out social welfare forms and even need help on how to claim rent tax credit etc.

Your landlord is crazy to suggest this, as it is tax evasion by him. It is not unknown for landlords to 'give' in cash the tax credit to tenant's to stop them claiming the tax credit for rent. Of course tenant's can still claim it without landlord knowing.

If I were you I would tell the landlord that you are not happy about doing this and see what he says. No landlord in these times wants to lose a good paying tenant.
 
serotoninsid said:
Not sure how long since your tenancy started, but isn't the tax credit on rental being phased out?
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http://www.revenue.ie/en/tax/it/credits/rent-credit.html

Tax years 2011 to 2017 inclusive

Credit for rent paid will be withdrawn on a phased basis over the next 7 years. To see the maximum amount of the credit that will be due, see Leaflet IT 1.
The credit for the years 2011 onwards applies to individuals who were renting a propety on 7 December 2010. No credit is due to individuals who began renting after 7 December 2010.
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