Mortgage Interest TRS - are you sure you're getting it?

Hi,
I recently noticed that I wasn't getting the mortgage interest tax relief at source. I had remortgaged in the last year and had assumed that my TRS would be automatically switched to the new account, as it was same mortgage provider and same house. However you actually need to apply for it all over again and in fairness the financial institution did send me the form with all of the other documents and probably advised me to send it off in the correspondence. I assumed it wasn't necessary as I was already in the system.
I think this is happening a lot as I checked it out with a number of other people who had assumed all was ok and we were very surprised to find how often it was happening. Some of them had never received it at all.
All you need to do to check it is to call Lo-Call 1890 46 36 26 the TRS helpline and have your PPS number to hand. I'd be interested to hear if anyone finds the same.

Scrambler said:

I had remortgaged in the last year and had assumed that my TRS would be automatically switched to the new account, as it was same mortgage provider and same house. However you actually need to apply for it all over again

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Bear in mind that if you remortgage for purposes other than purchase or renovation of your PPR then interest on the additional amount borrowed does not qualify for owner occupier mortgage interest relief.

That's correct but I ended up not getting relief on any interest. The original loan was cancelled and so was the trs. I was entitled to relief on the same amount of the new loan but it didn't happen automatically and nobody flagged it. And it seems to be happening a lot. You should check yours.

The same happened to my sister. She remortgaged in September 2005 and only found out in March of this year, that she had not been getting any TRS since then.

My wife and I are in the same boat, we have a mortgage almost 18 months now and have not been getting TRS. Will we be entittled to get this credit back dated? The mortgage is in my name only, she wants to keep her ftb status.

Hi Jaid79

I'd expect the Revenue will give you credit for the period gone, assuming you can provide them with a statement to prove your claim.

Given the mortgage is only in your name, you'll only be entitled to claim single persons allowance I'd think .... although I'm no expert.



On a general note, you'd think it only fair that as part of the great Switcher Code between the various banks now, they'd also ensure you go your Revenue records updated - it would be a simple letter from Bank B, telling them you've moved from Bank A and providing details of the amount of the loan, any new advance etc. ... if only, this was not Ireland



For anyone who needs to get detail on their TFA for Mortgage Interest Relief or to Make Application for their TFA, please see the following page: [broken link removed]


Cheers

G>

Has TRS changed much in the last 7 years? Ive been through 2 houses and several mortgages with diff banks since then - where could i find out historic trs rates?

And if I find this out - is there a simple calulation for working out how much I should have been getting?

I want to approach revenue - but not untill im sure there is something wrong.

Hi Yankinlk

The allowances were certianly changed in the last budget, you'll find the differences shown in a table on that link I posted.

Prior to this, I think they were fairly static for quite a while ... mind you, you might also want to give consideration to the fact that there was an additional allowance available for first time buyers, for the first 7 years I think.

Best to speak to Revenue directly I'd suggest - you'll probably be told to fill out a claim form and send it in, but ring them first I'd think

Cheers

G>

Jaid79 said:

My wife and I are in the same boat, we have a mortgage almost 18 months now and have not been getting TRS. Will we be entittled to get this credit back dated? The mortgage is in my name only, she wants to keep her ftb status.

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I tried this and Revenue were not impressed with my reasoning. They said as we were married we both by law have to apply for TRS on the property.

Lo-Call 1890 46 36 26

Hi, the first and easiest thing you should do is ring this number and have your pps number in front of you. It's a dedicated TRS helpline - all they need is your pps no. and they'll tell you if you've being receiving it , when it stopped etc . Then you can try and calculate the accuracy of it afterwards but I think the main problem is people aren't getting it at all but don't realise. I did this exercise for a bunch of people and there was a problem with about 30% of them. I just feel it could be a huge area where people are losing out but I haven't heard it mentioned when they talk about overpaid taxes and underclaimed reliefs - the revenue, the government and the tax institute have all been highlighting medical expenses etc recently but everyone assumes the TRS is running smoothly. I don't think it is - and I think more could be done by the lenders who should be able to see clearly - someone is receiving x euros from revenue every month, they remortgage and thereafter they receive zero. This wasn't limited to one or two institutions either. If something like even 5% of taxpayers with mortgages are not getting their tax relief imagine the sum of money you're talking about.
Ring the number, especially if you've remortgaged at some stage.

Garrettod,

Thanks for the information, I`ve contacted the revenue and filled out and returned the forms. The guy at the revenue told me roughly, I would be due back 1,400E and thats just for last year.

They will also credit me for this years under claim. Thats a substancal amount of money to forego, just for the sake of one phone call and a bit form filling.

Bond-007, too the best of my knowledge your correct about the TRS for a married couple, but there is also a thing called individualisation. This means that everybody in the state has a right to be considered as a single person, married or not, for tax purposes.

I dont think your partners ftb status should be effected, as long as they apply for the mortgage in their own or with another ftb.

Its crazy to think how much of our money is lying in the coffers pockets and we don`t or didnt know about it.

Jaid79 said:

Bond-007, too the best of my knowledge your correct about the TRS for a married couple, but there is also a thing called individualisation. This means that everybody in the state has a right to be considered as a single person, married or not, for tax purposes.

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Revenue told me that individualisation does not apply to matters such as TRS. While we both may be treated as single for PAYE we cannot be treated as single for TRS. I was told that if my wife continued to claim TRS as a single person she would be defrauding the revenue.

Revenue told me that individualisation does not apply to matters such as TRS. While we both may be treated as single for PAYE we cannot be treated as single for TRS. I was told that if my wife continued to claim TRS as a single person she would be defrauding the revenue.

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Recently I have read a paper on individualisation and it did say that the Irish tax system is not fully individualised. I suspect this is one such area?