# Rent relief and not declaring income tax



## Cream Bun (16 Feb 2011)

Hi All
Im wondering can somebody give me advice please. I am renting a property since 2008. The current tenants moved in last July 2010 and are renting since. I am not declaring tax on the rental income. I am not making any profit on it either. One of the current tenants wants my PPS number to claim rent relief for last year. He said it shouldn’t affect me once im not making over 8.5k a year. I’m not sure what to do. I know he is entitled to this relief but what will happen if I give him my PPS number? Could I just give him the money he would get back myself? I know I should have sorted this out ages ago but would appreciate any advice. Thanks


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## Berni (16 Feb 2011)

By not doing things right, you have actually created a tax liability that probably wouldn't have existed otherwise. 

For the years you weren't registered with the PRTB you can't deduct mortgage interest as an expense, so most of the rent you got will be taxable. The longer you leave it to sort this out, the greater the penalties and interest will become.

If you try buying your tenant's silence, bear in mind that he can take your cash, and then look for his credits from Revenue at any point in the next four years. He doesn't need your PPS, just your name & address.


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## Cream Bun (16 Feb 2011)

Ok, thanks. Do you think I should just get an accountant and sort it all out now so? 
I know it might be a stupid question but how will they know it has been rented since 2008. None of the previous tenants claimed rent relief. Can i not just say its been rented since last July?


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## WindUp (16 Feb 2011)

How do you know the previous tenants wont claim tax relief? they have 4 years to do so. Have you registered with the PRTB ?


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## shesells (16 Feb 2011)

Cream Bun said:


> I know it might be a stupid question but how will they know it has been rented since 2008. None of the previous tenants claimed rent relief. Can i not just say its been rented since last July?



Doing that is tax evasion, fraud and a criminal offence. You are legally obliged to declare all taxable income including any rent.

It doesn't matter whether previous tenants have claimed rent relief or not, there are many ways Revenue can find out that a unit is rented. It's easier, and cheaper to come clean now.


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## Cream Bun (16 Feb 2011)

No I bought the house as an affordable house when I was 24. When I got offered it I was in 2 minds whether to go ahead or not. It was all very fast I needed to decide by a certain time and I just went along with it without doing any proper research. I was very young when I think about it and didn’t have much guidance. Anyway,  I lived in it for a couple of months and couldn’t afford to pay the mortgage anymore. I didn’t register with the PRTB as I wasn’t supposed to rent out the house so that’s the reason. If it wasn’t an affordable house I would have done everything above board. I know its wrong but its also very stressful as I don’t have a clue about taxes and all that so I just take each day as it comes with it and try not to worry about previous tenants claiming. Now I’m trying to deal with this situation and really don’t know what to do.

Can anyone tell me if I sort it out now how much will I have to pay?


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## shesells (16 Feb 2011)

Check out www.landlord.com - there are spreadsheets over there that will help


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