I've owned a rental property since 2002, out of all of those years since I've been assessed through a Form 12 (as a PAYE worker) at my local revenue office bar 2005 when my tax return was sent to Collector General in Limerick and again this happened for tax year 2007 (2006 I was on maternity leave and hence PAYE earnings were low) due to my rental income having crossed the €3300 threshold or whatever it is around that amount.
Anyway, have just received my notice of assessment back and I owe Revenue €1350, not a huge amount I know but a lot right now because I don't have it (I had expected a payment due to them of approx. €500-€800 as that's what it's always been max till now). I was talking to a girl in Revenue and she said not only to I have to pay the €1350 by 31st October but I also have to pay a preliminary tax payment of €1350 again in advance of next year by the end of this October so I owe them €2700. If I don't pay the additional €1350 I could get stuck for interest, is that right? I can't understand how this has never come up before. Just seems to me that I'd be much better off if I reduced my monthly rent to my tenant (it's only €995 a month now) than have to go through this.
Anyway, have just received my notice of assessment back and I owe Revenue €1350, not a huge amount I know but a lot right now because I don't have it (I had expected a payment due to them of approx. €500-€800 as that's what it's always been max till now). I was talking to a girl in Revenue and she said not only to I have to pay the €1350 by 31st October but I also have to pay a preliminary tax payment of €1350 again in advance of next year by the end of this October so I owe them €2700. If I don't pay the additional €1350 I could get stuck for interest, is that right? I can't understand how this has never come up before. Just seems to me that I'd be much better off if I reduced my monthly rent to my tenant (it's only €995 a month now) than have to go through this.