TRS revenue demand

H

Hubert

Registered User
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Hi All

Just opened my post after two weeks away and got a bill for €8k!!! from Revenue for Mortgage interest TRS granted on a property that was my wife's PPR until 2009. They claim she never informed Revenue she left the property and rented it out.

While she did receive the TRS (I checked bank statements) my question is will Revenue agree to a payment plan? I'm going to call them tomorrow.

I'm self employed and have a tax bill to pay in October and this amount is a hit we could do with out as we invested all our spare cash in the business this year so ideally could do with 12-18 months to sort this out.

Any views appreciated.

Great way to come back from the summer holidays - lashing rain, mayo draw and a big bill from the tax man!!
 
Hi Hubert

When she made tax returns of her rental income, did she claim the interest paid as a tax deduction?

Brendan
 
Hi Brendan

I did check that and it turns out what she did was take the amount she received at source and doubled it (her logic was she was grossing it up) and then deducted that amount from the 75% of the actual mortgage interest paid. Weird logic I know but it seems like she has underclaimed quite an amount of mortgage interest paid - her thinking was she was getting the relief at source and was then self deducting some interest.

I hope this makes sense.

Thanks
 
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