Mortgage Interest Relief stopped by Revenue - I believe incorrectly

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Dublin_Resident

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Hello,

I hope someone can let me know if I have grounds to challenge Revenue for removing my Mortgage Interest Relief.

I bought a large 1 bed apartment in late 2006 and this has been my Principal Private Residence (PPR) since that date. I've had a child since then and my partner and I decided last year to use my unpaid parental leave entitlement and visit her family abroad on an extended 4 month holiday (I'm a full time employee).

I didn't want to rent the apartment out while I was away and lose all my entitlements for such a relatively short period of time. At the same time I still had the mortgage and bills to pay so I researched potential options that were available to me.

A friend suggested the 'Rent a Room' scheme and was also prepared to be the 'rent a roomer' for the 4 month period. He would pay me for using a room and also all the bills while I was away.

I researched the scheme in a lot more detail and it seemed like a viable option as:
- The apt would remain my PPR (Revenue view this over a 12 month period as I see it).
- Any payments received by me would be well under the exemption limit of €12,000.
- We didn't need to register with PRTB

I also understood that I didn't need to inform Revenue of our plans to use this scheme. I didn't see where you had to 'appy' for this scheme in advance and was reassured by the following line on the Citizens Information site:
"If you do not make an annual tax return and your income from rent and related services is under the exemption limit, you do not have to claim rent-a-room relief as it will apply automatically"

Long story short we went ahead with it. My small family and I were abroad for about 16 weeks (end of 2015 until last week).
My friend has been 'renting a room' at my apt and paying the bills while we were away.
We are now moving back in to the place and returning all the bills to my name. I am also returning to work.

Today I opened a letter from Revenue (dated mid January) stating that they believed the apt was not my PPR (interested in how they figured this actually - probably the Irish Water bill?) and that unless I completed a form and furnished them with a recent utility bill my Mortgage Interest Relief would be stopped. This was due by the end of January!

I would love to understand if I have grounds to challenge Revenue for removing this?
I am also concerned if there could potentially be any further implications if Revenue believe this is not my PPR - such as loss of my Tracker mortgage, TRS clawbacks etc.
Any help or advice greatly appreciated.
 
The tracker mortgage is not an issue.

No idea if this kind of letting for four months is allowed under rent a room, sounds dodgy to me but the fact it's perfectly legit to go on holiday for four months would seem to make it ok, odd the utility bills being change though.

Seems to me all you have to do is sent them a utility bill, can you not send one that is four months old !

No way do I think revenue is this efficient though so I suspect there is more to this story than meets the eye.
 
definitely sounds like more to the story, did someone call revenue about you.....?
 
Is this not just simply a case of phoning revenue and:

a) explain to them that it is and has been your ppr
b) out of curiosity (and indeed if you can), how did they find out you were away and I suppose also on what basis are they claiming that it isn't your ppr

Surely the burden of proof is on them to prove that it isn't your ppr? if the burden is on you then how does any individual prove that their ppr is in fact their ppr? home insurance? bank (if mortgaged)?
 
Thank you for the replies.
We didn't change all the bills so I do have recent bills that I can send, I have missed the deadline that they set of January though so the TRS has already been stopped.
I took unpaid leave so that I could go on this trip. Having most of the bills covered while I was away was a huge help.

I certainly could not imagine someone called Revenue about me. What could they say anyway apart from that I was away on an extended holiday?

Jim, I certainly hope it is a case of calling Revenue as you say. I posted here so I could be 100% sure of my position when I speak with them.
For b), I really don't know how they would have come to this conclusion. Would be interested to know though.
 
Write to them and don't mention rent a room. Simply say it's your PPR and if they ask who someone you had in is, you simply say you were on holidays and he was minding your apartment for you.
 
He was minding the apartment for me yes but he was also paying a fee for the luxury and covering the bills.
I'd like to be as honest as possible when I'm speaking to Revenue.
I believe that to the letter of the law that I have nothing to hide and I can disclose all of this information.
Would love to hear any other opinions there may be....
 
It sounds like a misunderstanding and all thats required is a phone call to explain to them the facts. The revenue are reasonable.
 
You could also make the case that while you were away that you needed proof that there was some one in the apartment and that is why you changed over bills. By proof of someone in the apartment I mean for insurance purposes in case of a claim. Some apartment block policies can require that the apartment is not vacant more than 30 days. Same as a house. Would seem to be a logical and acceptable explanation.
 
Thank you for all the feedback.
Any other comments welcome; I want to call Revenue as soon as possible so I can put this to bed.
 
Id say that explains it..irishwater must have dobbed you in! Or 1 of them did...in any case im pretty sure it can be easily resolved over the phone. Good luck!
 
Thanks Jim. I didn't think they would be allowed to 'dob me in'??
It's easy to be wise in hindsight but I'm guessing a simple phone call before I left could have avoided all of this.
 
It for sure is not the Gas and Electic. I also find it hard to credit that the revenue would be this quick in any case. Four months is nothing. And Irish water is an 'unmitigated' disaster as the FG Minister said yesterday. By any chance was your tenant on social welfare. It seems to me all you need to do is email revenue any bill in your name, a four month old esb bill, or a current one, you can get one right now by phoning in the gas or electric the meter reading and requesting a bill ! Your house didn't change from a PPR with four months non residence.

Do you not have a bill for your bin company or a phone company?
 
Bronte, no my tenant is in full time employment also.
I received the letter from Revenue in mid January so it was actually sent when I was barely 10 weeks out of the country.

The bins are covered by the management company service charge. The phone/broadband are still in my name.
As I said I have recent bills that I can send; at this stage though I think I should call to clear this up once and for all??
 
Seems very odd to me that you'd transfer utility bills to a lodger in your ppr for a shortish holiday .
 
vandriver said:
Seems very odd to me that you'd transfer utility bills to a lodger in your ppr for a shortish holiday .
Click to expand...

exactly my sentiments, his friend could just have carried on paying the bills in his name and he wouldn't be lumbered with this mess now.
 
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I thought it was a long holiday to be honest.
As far as I remember a few phone calls was all that was required to change the bills. Something I should have done with Revenue also.
Peace of mind for me while I was away knowing those bills were not coming out of my account.
 
Dublin_Resident said:
Bronte, no my tenant is in full time employment also.
I received the letter from Revenue in mid January so it was actually sent when I was barely 10 weeks out of the country.

The bins are covered by the management company service charge. The phone/broadband are still in my name.
As I said I have recent bills that I can send; at this stage though I think I should call to clear this up once and for all??
Click to expand...

My advice to you is not to telephone or contract revenue. Just reply to the letter with a utility bill and say nothing. This looks like a paper exercise and the answer to that is to send paper back. On the face of it that should be the end of the matter.
 
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