Latest News

by admin admin No Comments

Revenue advising taxpayers to claim their entitlements before 31 December Deadline

Revenue has written to over 125,000 PAYE taxpayers

that have not claimed any additional tax credits/reliefs in the previous four years, reminding them to claim their entitlements for the year 2014 before 31st December 2018.

 

As you may be aware, there is a four-year time limit on claiming tax back on for example; medical expenses,

tuition fees and for claiming tax credits/reliefs on, for example, home carer’s credit.

 

If you have a claim for 2014, you need to submit this by 31st December.

Generally, Revenue are issuing refunds within 5 days so there is still time to claim yours before Christmas!

 

Why not avail of our ClaimMyTaxBack.ie service for PAYE only?

We can review the last four years for you and calculate if you are entitled to a refund for any of those years.

This review is undertaken on a No Refund/No Fee basis. Therefore, if you are not due a refund, no fee applies

If a refund is due, our fee is 10% of your refund (minimum of €35) per year.

 

Should you wish to avail of this service, please request an application form at taxback@claimmytaxback.ie or visit our website www.claimmytaxback.ie

 

Should you have any queries on this issue, please contact us on 01 5397999

by admin admin No Comments

Getting tax back on your Pension Lump Sum

As the October 31st tax deadline races towards us, you may want to consider topping up your pension, as this is the deadline for claiming any tax relief this amount for the 2017 tax year.

You can make lump sum payments to your private pension or an AVC (Additional Voluntary Contribution) to your occupational pension.

If you ‘top up’ your pension by 31st October 2018, you are entitled to claim tax relief on that ‘top up’ amount against the tax paid in 2017.

Let us show you an example;

Ann ‘tops up’ her pension €1,000
Ann claims tax relief on €1,000 @ her marginal rate (40%) €400

In the above example, Ann has ‘topped up’ her pension by €1,000 but the real cost to her was €600 as she claimed back €400 tax relief.

Remember

Your pension ‘top-up’ needs to be paid by 31st October and your return completed.

 

Should you have any queries on this issue, please contact us on 01 5397999 or request our application form here

by admin admin No Comments

Rental Income including Airbnb

There has much press coverage of Revenue investigating tax affairs of homeowners, in particular, those letting rooms through the Airbnb website, as previously highlighted by us here.

A press release issued by Revenue on 18th September (read it here) has now directly referenced the recipients of Airbnb income. They state they are writing to 12,000 people, as a reminder to include this income in the yearly tax return.

In reference to this, we highlight the main areas you need to be aware of when receiving rental income –

 

If you receive rental income from renting out a property

If you are renting out a property and your profits exceed €5,000 per year, you will need to register for Income Tax. Each year you will need to file your Income Tax Return by 31st October through a Form 11.

If this rental income is less than €5,000 per year, then you are not required to register for Income Tax but you are still liable to be taxed on this income. You will need to file this yearly through a Form 12.

 

If you are renting out a room in your home (long term)

If you are renting out a room for a long period of time and your income exceeds €14,000, you will need to register for Income Tax. Each year you will need to file your Income Tax Return by 31st October through a Form 11.

If your rental income is less than €14,000, you may be eligible to apply for rent-a-room relief.

 

Rent-a-room Relief

This allows a homeowner to earn rental income tax free, you much meet the following criteria to apply;

  • Rental income does not exceed €14,000 in the tax year
  • The property must be in Ireland
  • The property must be your sole residence during the tax year
  • This relief only applies to residential and not to short term or temporary lettings i.e Airbnb

 

If you are renting out a room in your home (temporary/short term)

If you are renting out a room in your home or the entire property temporarily (i.e Airbnb) you are not eligible to apply for rent-a-room relief.

If this rental income is less than €5,000 per year, then you are not required to register for Income Tax but you are still liable to be taxed on this income. You will need to file this yearly though a Form 12.

 

Airbnb Rental Income

If you are in receipt of rental income through the Airbnb website, your rental income will be subject to 20% or 40% depending on your circumstances. This income has been split by Revenue;

Trading Income

  • Rental income exceeds €5,000 in that year or
  • You rent a room or property on 6 or more occasions per year or
  • Host for 30 or more nights in that year or
  • The property is available for renting all of the time
  • You will need to register for Income Tax. Each year you will need to file your Income Tax Return by 31st October through a Form 11.

Other Income

  • Rental income does not exceed €5,000 in that year
  • You are not required to register for Income Tax but you are still liable to be taxed on this income. You will need to file this yearly through a Form 12.

 

 

Renting to family members

Read our recent blog post on this here

 

Remember, you can offset a number of rental expenses which must be included in your rental return and keep a record of all invoices and receipts of expenses incurred. These include;

  • Mortgage Interest (80% for 2017, 85% for 2018)
  • Bank Charges
  • Letting Expenses
  • Insurance & Mortgage Protection premiums
  • RTB Registration Fee
  • Accountants Fees
  • Utilities
  • Advertising Expenses
  • Repairs & Maintenance
  • Wear & Tear

 

Why not also read our Pre-Letting Expenses blog here

 

Should you have any queries on this issue, please contact us on 01 5397999 or request our rental income form and application here

Top