# Maintenance fee - tax relief



## kmelvin

Hi, 
I've heard it is possible to claim back on Maintenance Fees paid to Management Companies.

Does anyone know if this is true and how to go about claiming it?

Thanks 

Karl


----------



## Satanta

kmelvin said:


> Does anyone know if this is true and how to go about claiming it?


You may claim tax relief on the "bin charges" related to maintenance fees, as you would as if you were paying normal "bin charges".

You should have recieved a breakdown with your maintenance fee detailing how the costs were calculated, including what portion of the fee is related to the refuse charges.

I'm not sure if this is what you were referring too, but it's the only available tax relief I know of from maintenance fees.


----------



## kmelvin

Thanks Satanta, yeah you could be right.

Although I thought there was other service charges I could claim.


----------



## Newby

kmelvin said:


> Although I thought there was other service charges I could claim.


 
Do you live in the apartment or are you renting it out to others? If you rent it out to others you may be able to deduct the cost of the management services. Speak to an advisor before you do this.


----------



## shesells

Indeed, it's a sad state of affairs but owner occupiers only get tax relief on refuse but landlords get tax relief on the whole lot. Sickening really when we're paying almost €1500 a year and the refuse equates to about €40!


----------



## ClubMan

shesells said:


> Indeed, it's a sad state of affairs but owner occupiers only get tax relief on refuse but landlords get tax relief on the whole lot.


Is that actually true about investors?


> Sickening really when we're paying almost €1500 a year and the refuse equates to about €40!


 Most householders in privately managed housing/apartment developments are members/shareholders of their management company so they have the power to influence how they work. If you are in this situation and not happy with the management company's budget/expenditure then you should consider getting actively involved in the running of the company, possibly even running for election to the board of directors.


----------



## CCOVICH

Where can you get refuse collection for €40 per year?


----------



## KalEl

Satanta said:


> You may claim tax relief on the "bin charges" related to maintenance fees, as you would as if you were paying normal "bin charges".
> 
> You should have recieved a breakdown with your maintenance fee detailing how the costs were calculated, including what portion of the fee is related to the refuse charges.
> 
> I'm not sure if this is what you were referring too, but it's the only available tax relief I know of from maintenance fees.


 
We've been advised that we cannot claim tax relief on the bin-charge element so this is news to me?


----------



## CCOVICH

KalEl said:


> We've been advised that we cannot claim tax relief on the bin-charge element so this is news to me?




Advised by who?  You will find reference to apartment owners being allowed to claim for the refuse charge element of their fees if you search the Revenue site and AAM as it has been discussed here before.


----------



## KalEl

CCOVICH said:


> Advised by who? You will find reference to apartment owners being allowed to claim for the refuse charge element of their fees if you search the Revenue site and AAM as it has been discussed here before.


 
By the management agents! How would you go about calculating it?
I'm on the residents committee but the management company is still controlled by the builder. I get to see accounts which would contain the refuse charges but this figure includes recycling too. And the residents as a whole do not get these figures. I suppose logically you'd use the same ratios for dividing the annual management charge to work out your share of the refuse?


----------



## Newby

ClubMan said:


> Is that actually true about investors?



Well it is an expense in the running of the property business... Off the top of the head I would have thought it is allowable for investors.


----------



## CCOVICH

KalEl said:


> By the management agents! How would you go about calculating it?


 
The management agent is wrong-you can claim tax relief.

On the fees-yes, simply look at the total refuse cost, divide it into the total cost, and apply this % to your total fee.


----------



## KalEl

CCOVICH said:


> The management agent is wrong-you can claim tax relief.
> 
> On the fees-yes, simply look at the total refuse cost, divide it into the total cost, and apply this % to your total fee.


 
That's about €300...so I'd get €150 odd back in tax?
Can I claim for previous years?
This is great, thanks for the info


----------



## ClubMan

There are limits on the amount that you can get relief on. It [broken link removed] €400 for 2007 in respect of charges paid in 2006. It may have been different prior to this. You can backdate claims for outstanding tax relief by up to 4 tax years.


----------



## KalEl

ClubMan said:


> There are limits on the amount that you can get relief on. It [broken link removed] €400 for 2007 in respect of charges paid in 2006. It may have been different prior to this. You can backdate claims for outstanding tax relief by up to 4 tax years.


 
Thanks Clubman...one thing worries me though. Nowhere on that leaflet does it say anything about claiming tax relief on refuse charges if you don't pay them directly.


----------



## CCOVICH

_KalEl_-other residents in a development I lived in claimed.  So did I.  Call the Revenue.


----------



## KalEl

CCOVICH said:


> _KalEl_-other residents in a development I lived in claimed. So did I. Call the Revenue.


 
I will...it'd be worth €600 to me which is not to be sneezed at.


----------



## Thrifty1

You can claim tax back on service charges paid to management agent, not just limited on the refuse charges.

Look at the 2007 budget and it gives you the limit.


----------



## CCOVICH

KalEl said:


> I will...it'd be worth €600 to me which is not to be sneezed at.


 

I'd be surprised if it's worth that much.  Does this include prior years?


----------



## KalEl

Thrifty1 said:


> You can claim tax back on service charges paid to management agent, not just limited on the refuse charges.
> 
> Look at the 2007 budget and it gives you the limit.


 
Fascinating...that brings it up to €1000!
I know for a fact the 20 or so of my neighbours who I know have no idea about this. In fact, as I said earlier we were advised otherwise!


----------



## CCOVICH

Thrifty1 said:


> You can claim tax back on service charges paid to management agent, not just limited on the refuse charges.
> 
> Look at the 2007 budget and it gives you the limit.


 
Are you referring to owner occupiers or investors?


----------



## KalEl

CCOVICH said:


> I'd be surprised if it's worth that much. Does this include prior years?


 
My share is  €300 per annum for four years.
Closer to €500 I suppose


----------



## CCOVICH

€300 per annum 
@20%
is €60

so more like €240?


----------



## ClubMan

Thrifty1 said:


> You can claim tax back on service charges paid to management agent, not just limited on the refuse charges.


What sort of service charges? I thought that it was just for refuse and water etc. I'm pretty sure that it doesn't relate to most or all of any management company charge that might apply in a privately managed development (whatever about the portion that might be attributable to refuse charges etc.) if that's what anybody thinks.


----------



## KalEl

CCOVICH said:


> €300 per annum
> @20%
> is €60
> 
> so more like €240?


 
Oh right, it's at 20%?

Still better than a kick in the head I suppose


----------



## Newby

ClubMan said:


> What sort of service charges? I thought that it was just for refuse and water etc. I'm pretty sure that it doesn't relate to most or all of any management company charge that might apply in a privately managed development (whatever about the portion that might be attributable to refuse charges etc.) if that's what anybody thinks.



I think the claiming back of management charges that do not relate to refuse and water (management fees) may only be deductible where the property owner is an investor. This is one of the advantages of being an investor vs being an owner occupier.


----------

