Miscalculation in rental income tax liability?

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vixter

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Hi all,

My accountant submitted my rental income tax return for 2014. I have just received a revenue bill for €4300 which is significantly higher than I had calculated. I am registered with ROS but can't access the actual return submitted on Form 11.

The rental income for the year was 10,800. I am a PAYE worker on the top rate of tax.


Mortgage interest (75%) - 2099
Mortgage protection, insurance, management fees -1780
Repairs - 695
Health expenses (20%) - 120

Total:4694

10,800 - 4694 = 6106 taxable income

52% of 6106 = 3175

Total owed = 3175

I haven't been able to get a hold of the accountant to discuss matters with him but do my figures look roughly okay?

Thanks
 
They look fine but your actual tax liability may be affected by other income and PAYE/USC deductions etc.
 
Is there any penalty/interest payable? Should not 2014 tax have been paid by Oct/Nob 2015?
 
Hi, thanks for the replies. A return was filed at the end October but I didn't get the assessment until December. The accountant appealed the figure, the process took several weeks, and then yesterday I received an amended assessment for slightly less than the original. Anyway, the accountant figures its the higher than expected liability is to do with the way myself and my husbands tax credits were shared that year.

Thanks again.
 
vixter said:
Hi all,

My accountant submitted my rental income tax return for 2014. I have just received a revenue bill for €4300 which is significantly higher than I had calculated. I am registered with ROS but can't access the actual return submitted on Form 11.

The rental income for the year was 10,800. I am a PAYE worker on the top rate of tax.


Mortgage interest (75%) - 2099
Mortgage protection, insurance, management fees -1780
Repairs - 695
Health expenses (20%) - 120

Total:4694

10,800 - 4694 = 6106 taxable income

52% of 6106 = 3175

Total owed = 3175

I haven't been able to get a hold of the accountant to discuss matters with him but do my figures look roughly okay?

Thanks
Click to expand...
 
How do accountants get away with shoddy work.

It's a self assessment system, they should be able to tell you that you are underpaid on your salary before submitting the return.
 
Do you not have more expenses to off set against income such as wear and tear 12.5% over eight years. PRTB reg. etc.
Where does health expense come in?
 
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can't you claim your health expenses against revenue bill for rental income, I have always done this. instead of doing return in Jan I hold off an put it against bill in Octover
 
Joe_90 said:
How do accountants get away with shoddy work.

It's a self assessment system, they should be able to tell you that you are underpaid on your salary before submitting the return.
Click to expand...

Sounds like the "accountant" isn't using ROS, which otherwise tells them the liability before the return is filed and generates an assessment that is an integral part of the tax return itself.

Beggars belief in this day and age.
 
Clara16 said:
can't you claim your health expenses against revenue bill for rental income, I have always done this. instead of doing return in Jan I hold off an put it against bill in Octover
Click to expand...

I don't understand this. Unless you're doing it and you have other income that is eligible for this deduction.
 
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