FORM 12 for Rental Income Return

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geri

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I'm filling in my first Form 12 this year for Rental Income. As I am a PAYE worker and my employer already takes care of BIK payments on VHI premiums, PRSA relief etc, is it still necessary for me to put all these details in the Form? As I have never had to do this before, and the only reason I am now filling in the form is for Rental Income, is it sufficient to just fill in this section? Any advice appreciated as always.
 
All that stuff normally goes into your standard tax return. Have you been supplied with one?
 
Hi,
I have never done a TAX return before as my this has always been done through payroll by my employer. I'm just not sure if I should put this info on the form 12 when my employer already takes care of this for me. The only reason I'm submitting the Form 12 this year is I started renting out a house last year, so was wondering if anyone knew if I should just put these details in, and leave out the VHI, and pension information.
Thanks.
 
If you leave out details of BIK & other income from your tax return, then you are breaking the law and could be prosecuted for (1) evading tax on this income; and (2) making a false tax returns. Unless you have a good knowledge of what's involved, and the implications attaching, you would be well advised to get professional assistance.
 
Yes you should include the VHI and pension. It should not result in additional liabilty as the BIK on the VHI has already been assessed through payroll

However you may be entitled to a credit (20% of the amount paid by your employer) if you have not made a claim to have your personal allowances reflect this already.
Tax relief is normally at source for individual VHI membership. But where you company pays the VHI, the individual must claim the tax credit from the tax authorities as the company pays the amount including tax.
 
Arch,
Thanks for your post. Sounds like good news.
Ubiquitious,
Thanks also for your advice. Just want to be clear though that the last thing I am doing is looking for ways to avoid TAX. I was hoping that I could do the return myself without having to go to extra expense of using an accountant, which is why I'm using this forum. I have found it very helpful and informative since I started to rent out a property last year, and will cotinue to use it to seek advice and information. I am aware that Askaboutmoney is not a substitute for professional advice. However even if I must seek professional advice on completing my return, I like to have as much information myself beforehand. Speaking as a non-financial expert, I sometimes find myself blinded by jargon, and legal-speak when dealing with Financial institutions or professionals. This site is great for arming yourself for these encounters so thanks Askaboutmoney!
 
Geri


I am interested to hear about your Form 12 problems. I am making one out for a rental property and am anxious to claim as much as i can. I have been advised here that i can claim unusal expences such as Visits and Telephone calls. Have you any other such expences??


Dublin 15
 
Could someone post a link on where to get a form 12 please as I need to start doing this myself.

Thanks
 
Hi Dublin 15,
The house I am renting out is next door, so I don't really have management expenses such as phone calls or visits etc. The only extra thing I can think of is the PRTB registration of 70 Euro. If you're paying for bincollection, or any other bills such as ESB, Heating etc, that can be claimed for. Have you had the Central Heating serviced? Done any paint or repair jobs of any kind? Sorry, can't really think of anything else, but will let you know if I do.
Hi Lilia,
You will get the Form 12 in the Forms section of the revenue website. www.revenue.ie Otherwise, if you call them, they will just send you one out in the post. I tried to print off the net and some of the margins were a bit off.
 
Doing the form 12 myself for the first time. I see there's a section for Credit Union dividends. Is this needed even when DIRT has been taken from the account?

And on a more general point, from reading the form, it seems that all interest on deposit accounts should be declared. To be honest never have done this in the past as my main source of income is PAYE, and the amount of interest is so minute.

S.
 
Is this the only form you need to submit to be up to date with declaration of rental income ? Apart from registering as a landlord under the tennancies act is there anything else that you need to do to be fully legal and above board in relation to renting an investment property. ?
 
I hope this is all you need to do. I'm not doing anything other than these two either. Maybe someone who has done this before can advise?
 
Here is a link from the Revenue website showing exactly which expenses are allowable deductions: [broken link removed]

Also, if your profit is greater than €3175 you will be dealt with through the self assessment system rather than PAYE.
 
The Revenue rarely spell out the meaning of their terms.

For example 'development' would include the building of a sunken garden; a swimming pool etc etc

Also somebody said not looking for ways to 'avoid' tax. Bear in mind that 'avoid' is legal. Why would you pay more than you should?

A
 
Some avoidance schemes, while technically legitimate, can fall foul of the Revenue anti-avoidance legislation (e.g. transactions which are artifically structured purely to avoid tax and which would not be structured in this way other than to do this).
 
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