Oh i could never be that mean, emm what will I spend all that money on....me me me!!!
Good for you, well get it done ASAP and let us know what you get!
Tax relief for paying parents weekly
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Good for you, well get it done ASAP and let us know what you get!
liteweight
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Not sure on this liteweight, I get confused by that kind of thing
Oh God...if I had a euro for every time someone in the Tax Office has told me to go ahead...only to be told the next week..definitely not....
It'll be very interesting to see if others got the same reply from the Taxman and even then to see what happens at a future date!!I also told the revenue that my parents did not file the tax returns for the previous years as they did not realise that they had to, so could they file them now back to 2002, they said to download Form12 from the revenue website for each year and send them in together.
I was a bit suspicious about the whole thing too so I rang the revenue a couple of times to double check and was told the same thing each time so it seems to be ok!!!
I was a bit suspicious about the whole thing too so I rang the revenue a couple of times to double check and was told the same thing each time so it seems to be ok!!!
No my boyfriend just wrote, 01, 02, 03, and so on.
I don't think that this is correct. While rent a room scheme income up to €7,620 is tax free it still must be declared as far as I know. The above suggests that it doesn't even have to be declared. I think that this is incorrect.
liteweight
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You're right Clubman, the income does have to be declared. People on the thread seem to think the Taxman will simply accept failure to make a return in the appropriate year(s). I've never heard of this before and it certainly hasn't been my experience. Ignorance is no excuse etc. etc......
Also, will receiving 'rent' from children affect certain parent's rights to benefits, e.g. claiming unemployment/disability or in fact, anything that's means tested?
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Hmm, maybe you're right. I'm sure someone will clarify it, I'm just telling you what the Revenue told us. His parents didn't have to sign anything though or fill in any seperate form. Just PPS number on Rent1 form.
Revenue can and do make mistakes. They dispense information and not advice. If they make mistakes then they will not accept this as a defence against making an incorrect return. If in doubt get independent, professional advice when assessing liabilities and making returns. Far too many people who post here on AAM are in danger of making incorrect decisions based on incomplete or inaccurate information which could cost them. Especially when it comes to rental issues.
liteweight
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He's definitely right Roxy. They will have to file a return from now on...at the very least!!
Just to clarify what I have been told to do by the Revenue.
Rent received under the rent a room scheme MUST be declared to the revenue by parents, however if thus far they have failed to declare this income they can now do so by completing a Form 12 for the years 2002, 2003, 2004 and 2005.
Once the rent received is less than the threshold of € 7620 per annum they will NOT be liable for any tax.
My parents will be sending these forms into the Revenue next week, I will post back any response they get from the Revenue
Rent received under the rent a room scheme MUST be declared to the revenue by parents, however if thus far they have failed to declare this income they can now do so by completing a Form 12 for the years 2002, 2003, 2004 and 2005.
Once the rent received is less than the threshold of € 7620 per annum they will NOT be liable for any tax.
My parents will be sending these forms into the Revenue next week, I will post back any response they get from the Revenue
Are you sure about that? I thought that one could only backdate claims for the previous four tax years which would be the calendar years 2005, 2004, 2003 and 2002 and not extending back to any part of 2001. Note that 2001 was the last tax year that started in April before the alignment of the tax and calendar years starting in 2002. Thus it was also a "short" tax year (April-December 2002). However I believe that it is beyond the four year cut off point now that we are in the 2006 tax year.
liteweight
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So they definitely have to file a return from now on...that's a given. I already realised that they wouldn't have to pay tax...the question is:- are there any penalties in law for not filing a tax return for the previous years, even if they didn't owe tax?
Also are other benefits which might be received by some parents affected by the Rent A Room Scheme? I think people should check these things out before all in sundry rush to fill in the form.
In the cases mentioned so far on the thread, it doesn't seem to matter as parents are in agreement but for others dipping into this forum at a future date, there may well be implications??
In my experience (e.g. see here) one should (well must!) always keep Revenue update with any changes in circumstances that affect earnings and tax etc. and might want to request a P21 balancing statement each year to make sure that one's tax affairs are up to date. I like to think that I understand a bit about personal taxation in general and my own in particular and yet somehow ended up in a situation in which I was owed over €2,800 in tax refunds over the past three tax years even after thinking that I had made sure to keep my single and then married credits/allowances up to date, reclaimed any tax/PRSI/health levy relief (e.g. on pension contributions) along the way, checked my payslips and caught mistakes by my employers etc. etc.
liteweight
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Again, correct!! Perhaps the poster applied for 2001 but was only reimbursed from 2002 and didn't notice???
I stand corrected. As I said I'm not too up to scale on the legalities of these type of things, just passing on info that was given to me. They haven't been sent any such forms as yet, maybe they'll come out with the cheque? Perhaps tml might confirm it for me. I really thought it was 6 April 2001 but I'll find out for sure when it comes out.
I was told also that you could only backdate claims as far as 2002.
I agree that Parents should check that this income does not affect any other means tested benefits they may be claiming ( not necessary in my parents case)
I was also told by the Revenue that there would be no penalty for not filing the tax returns in previous years as the amount involved is under the threshold so there is no outstanding tax due on it.
I agree that Parents should check that this income does not affect any other means tested benefits they may be claiming ( not necessary in my parents case)
I was also told by the Revenue that there would be no penalty for not filing the tax returns in previous years as the amount involved is under the threshold so there is no outstanding tax due on it.
You can claim back until 2002 only, so your parents need not worry about making returns for years prior to 2002.
All they need to do is submit a Form 12 with details of the rent-a-room income on it (and at the same time claim any additional credits or reliefs they may due for those years) to their own tax office.
To be fully compliant in the future, just ensure they submit their Form 12 by the 31st of October of they year following (i.e., 2006 return to be submitted no later than 31/10/07).
When you submit your own claim be sure to request that the credit is added for this year too.
The maximum amount of rent allowable for the credit is as follows:
2002, 2003 & 2004 €1270 @ 20% = €254 credit
2005 €1500 @ 20% = €300 credit
2006 €1650 @ 20% = €330 credit
All they need to do is submit a Form 12 with details of the rent-a-room income on it (and at the same time claim any additional credits or reliefs they may due for those years) to their own tax office.
To be fully compliant in the future, just ensure they submit their Form 12 by the 31st of October of they year following (i.e., 2006 return to be submitted no later than 31/10/07).
When you submit your own claim be sure to request that the credit is added for this year too.
The maximum amount of rent allowable for the credit is as follows:
2002, 2003 & 2004 €1270 @ 20% = €254 credit
2005 €1500 @ 20% = €300 credit
2006 €1650 @ 20% = €330 credit
Excellent, great info thanks a mill
liteweight
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Thanks for the link Setanta. So basically if parents are receiving payments from social welfare or any means tested supplements, the rent a room scheme payments are included as income. But they do not effect the Old Age (Non Contributory) Pension or the Widows Pension.