I completed a form 12 some weeks ago, in respect of rental income, and was disconcerted to receive my return back today with a requirement that I complete a form 11 instead on the basis that I was a "chargeable person" (though they've kindly cashed my cheque ).
Now, it's my understanding that a chargeable person must have a profit rent in excess of €3175 (according to a couple of the more knowledgeable sounding frequent posters), which I don't, nor do I have other non-PAYE income.
Obviously, I'll be querying this with Revenue, but does anyone know why I might be defined as a "chargeable person"? The vast bulk of my income is PAYE, and the profit rent is below the threshold by a reasonable margin.
They did the exact same thing to me last year. After wasting good tax payer’s money and harming the environment my sending me Form 12 in the first place. I just filled out the 'exact same' information on the Form 11 and sent it back to them. A total waste of time and effort. Honestly, the only reason I would think of was that Form 12 is handled by your local tax office and Form 11 is processed centrally in Limerick and they were too lazy to handle it in the local office.
On the above tax briefing, it seems to indicate that the non-PAYE income must not only be less than €3174 - itself an oddly arbitrary-looking number because they haven't changed it since old money - but must also effectively be managed through PAYE tax system:
"[...] all non-PAYE sources is less than €50,000 and the net assessable income is less than €3,174 and the income is coded against PAYE tax credits." (emphasis mine).
I've chosen not to have my tax credits changed since the investment mortgage is a tracker and therefore costs vary too much to do it through PAYE.
But I really wish they'd put that up front and easy to find (say on the guidance notes for the relevant forms - or is that just too helpful?), because I didn't manage to find that last time I looked.
I think it is on the front page of Form 11. But still it does not take into account the fact that you have now got to fill in the same information on a form which is 6 pages longer which will all be left blank. BTW don't mention ROS as I will only go into a rant.
I have been returning Rental Income (Nett profit less than €3174) for the past 15 years on a Form 12
In 2006 my husband became self-employed and had to change to Form 11 due to his change of status. (Nothing to do with the rental Income).
I totally agree that the form 11 seems to be a very cumbersome way to deal with a simple piece of Rental Income added to the main PAYE income
).