Rent-a-room - date of tax return?

D

D8Lady

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Hi there,
I'm a PAYE employee who has just started renting out 2 rooms.
This would be my only other source of income.

Do I have to send in tax return at the end of October or at the end of December? Am a bit confused.

Thanks, D8Lady
 
Neither.

PAYE folk with incidental income - such as rent a room relief - are spared the trauma of not being obliged to file a return unless they want to or some tax official sends you a return via Pat the postman. So unless you are a Company Director - relax. There are about a million of you.

In any event, this october would be for 2004 - in your case December 31 2004, so the Rent a Room would not be on the return.

Its prudent in my view to make a return on the basis that they might owe you money anyway.

If in doubt, always ask yourself how does this affect the Civil Servants. You dont think they would be going to jail merely for not filing a tax return ??
 
Are you sure about that? See [broken link removed] (my underlining):

Rent a Room Relief

From 6 April 2001, where an individual rents a room (or rooms) in a “qualifying residence” and the gross rent received, including sums arising for food, laundry or similar goods and services and the income does not exceed €7,620 this income will be exempt from income tax by including it in the individuals tax return. Where more than one individual is entitled to the rent, the limit is divided between the individuals concerned.

The relief is available to individuals only. It does not apply to companies or partnerships. However, it can apply where individuals have the income jointly (for instance husband and wife where there is no partnership), there the limit can be divided between the individuals concerned. Individuals who rent as well as individuals who own their own home may avail of the relief.

A “qualifying residence” is a residential premises in the State, which is occupied by an individual as his/her principal private residence during the year of assessment.

Room rentals coming within the scope of this scheme will not affect the person’s entitlement to mortgage interest relief or the capital gains tax exemption on the disposal of a principal private residence.

There is no deduction for expenses made in ascertaining the rental income received and if the income does not exceed the limit in the year then those profits/losses are treated as “nil” for the year of assessment.

This income is not liable to either PRSI or the 2% Health Levy but it must be included on an individuals annual income tax return.

An individual may, if they wish, elect to have any income/losses from this source assessed under the normal rules for rental income, e.g., if there is a rental loss on the room(s). To elect, complete the relevant section on your annual income tax return.
Click to expand...
 
Clubman:
You are right, but there are a million people who never make a tax return.
It would be the Revenue style to put in a technical piece like this.
That said, a PAYE person could file the return much later as in there appears to be no time limit as to when a PAYE person can file a return. They might not get a refund after 4 years but thats a different matter.

Like all the technical details, how is the Revenue policing these obligations it seems to create which are pointless?
 
WizardDr said:
You are right, but there are a million people who never make a tax return.
Click to expand...
I haven't filed a PAYE tax return in years but I always write directly to Revenue when there is any material change in my circumstances that requires their attention (either liabilities or overpayments).

It would be the Revenue style to put in a technical piece like this.

...

Like all the technical details, how is the Revenue policing these obligations it seems to create which are pointless?
Click to expand...
Well you could argue that all Revenue rules are technical but that doesn't mitigate the responsibility on people to play by the rules. I'm not sure what you mean by "pointless" but I assume you are referring to the declaration of income on which no tax liability arises? Surely this is not the only situation in which Revenue require the declaration of income etc. on which no tax liability arises?
 
just as a matter of interest

has the revenue put a time limit on filing personal returns, i have my last 3 years returns sitting at home for perosnal tax so can I claim for all 3 years - rent allowance tec etc
 
If you are owed tax then I think that 4 years may be the limit to backdating claims. For liabilities there is no limit as far as I know.
 
Hi again,

Thanks for the replies. I had read the detils on the revenue site. I'm a fool in the ways of Revenue. I have some PRSA contributions & some medical expenses that I could claim so I was going to file a return anyway.

Last year was the first time I'd ever sent in a return. I had 3 jobs during the previous year & tax was all over the place. An accountant said that I could be owed thousands.

I eventually got €189.63...
 
For someone on PAYE who is availing of the rent-a-room exemption, there is a risk in neglecting to file an annual tax return, in that they are technically breaking a central condition of the exemption and disqualifying themselves from the exemption if any tax inspector was ever awkward enough to hassle them on it. Best to file and have the matter sorted beyond doubt, in my opinion.
 
I am in the process of filing out form 12 but there is no address to send

it too any know what the address is?
 
If you log onto www.revenue.ie and use the contact locator link. You just have to key in your PPS number and it will tell you where you should send correspondance.
 
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