Tax Compliant

[kilross]

I am currently investigating the possibility of entering a RAS scheme with my local housing authority. The home was bought and used as a family home until recently when we had to move to N Ireland for a job, since then it was been rented to a family claiming rent allowance.
The guideline for the RAS scheme state that the landlord must be tax compliant. Can i be compliant when no longer resident in the country.

 

[kilross]

Can anyone offer any guidance here. It would be appreciated.

 

[T McGibney]

Yes, as a non-resident, you can indeed be tax compliant.

What you should do is (1) register as a non-resident landlord (2) appoint another person resident here (usually a relative friend or estate agent/letting agent) to act as 'collection agent'. Essentially this means that they are responsible for ensuring that you meet your tax obligations here. (3) file annual tax returns in this country in respect of this rental income and pay any tax arising.

Alternatively you can skip steps (1) & (2) by having your tenant deduct 20% tax at source and reclaiming excess tax from Revenue at year end, although this option can get messy and I do not recommend it.

 

[mathepac]

... Alternatively you can skip steps (1) & (2) by having your tenant deduct 20% tax at source and reclaiming excess tax from Revenue at year end, although this option can get messy and I do not recommend it.

This is not something OP has any discretion over or a decision he can participate in. As the landlord will not be resident Revenue will come after the tenant for the tax, so the decision in these circumstances will be the tenants exclusively.

 

[DB74]

It's not a decision of the tenants either - they HAVE to deduct the tax. If they don't they may be liable for it should Revenue decide to come looking for the tax.

 

[T McGibney]

This is not something OP has any discretion over or a decision he can participate in. As the landlord will not be resident Revenue will come after the tenant for the tax, so the decision in these circumstances will be the tenants exclusively.

It's not a decision of the tenants either - they HAVE to deduct the tax. If they don't they may be liable for it should Revenue decide to come looking for the tax.

Both these posts are incorrect. Once the non-resident appoints a 'collection agent' as described above, and properly registers this appointment with Revenue, the tenant has no statutory obligation, or even right, to deduct tax at source from the rental payments.