Four Years of Rental Income

Firstly, it is important that you try to file all of your returns as soon as possible as the more you delay, the more penalties that can build up. The responsibility is on you to file your tax returns even if the Revenue has not yet contacted you. You have until 31st October to file your return for 2012 so there is still time left to organise your return in time this year.

For prior years late filing surcharges and penalties may be applied by Revenue. By making a voluntary disclosure to Revenue rather than waiting for them to contact you, this will help mitigate any possible penalties.

If you are unable to pay the outstanding liability you can set up a phased payment plan with Revenue to pay the liability over a period of time. Revenue may also reduce your tax credits allocated to your PAYE employment. These would reduce your net pay you receive from your employer.

Revenue will not enter into any negotiations on payment plans until all outstanding returns have been submitted so it is important to get the returns submitted as soon as possible.

If you are renting a residential property you will also need to be registered with the Private Residential Tenancies Board (PRTB). If you are not registered with the PRTB, you will not be able to claim any relief for interest on any loan used to purchase the property. In addition you are required to pay the Non Principal Private Residence (NPPR) charge on any property located within the State which is not your primary residential address.

Finally you are also required to pay the new household charge on the property as in the vast majority of cases it is the landlord rather than the tenant who is liable to this charge.

Date published 4 Oct 2013

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.