Tax return on rental income-newbie

[Dipso2]

Hi
I became a sort of accidental landlord when my family circumstances changed and I moved out of Dublin. As I was not able to sell my home for personal reasons the house is rented out now for the last few months.
I know I need to declare all rental income in Oct and this is a responsibility I take seriously.
I am nervous having not done this before about whether I should engage an accountant (which on reduced working hours is an expense I could do without) or whether this process is straightforward enough.
Has any small landlords renting out their home done this themselves and could offer any advice. I am a PAYE earner on a reduced wage at the moment.
Any advice appreciated.

 

[Paul O Mahoney]

Hi
I became a sort of accidental landlord when my family circumstances changed and I moved out of Dublin. As I was not able to sell my home for personal reasons the house is rented out now for the last few months.
I know I need to declare all rental income in Oct and this is a responsibility I take seriously.
I am nervous having not done this before about whether I should engage an accountant (which on reduced working hours is an expense I could do without) or whether this process is straightforward enough.
Has any small landlords renting out their home done this themselves and could offer any advice. I am a PAYE earner on a reduced wage at the moment.
Any advice appreciated.

Could you provide dates please as it would be easier to calculate and if you don't mind what is the legal ownership of the property, married, single, divorced.

Monthly rent too.

But in general the Gross Rent less appropriate costs, mortgage interest, insurance, maintenance etc are deducted from gross and then taxed either at 20% or 40% PRSI and USC are also payable, and you said your income has reduced recently and that will dictate your liability too.

And yes you can do this yourself, but I fear you might need to do a form 11 via ROS as you are now a chargeable person, but I'll stand corrected on this.

 

[Dipso2]

Could you provide dates please as it would be easier to calculate and if you don't mind what is the legal ownership of the property, married, single, divorced.

I own the property from when I was single. I am married now with a family. I am the named landlord with the PRTB. Only rented out property since Marxh 2022.

 

[jpd]

As the rental income is un-earned income, you will have to report it under self-assessment on a Form 11 or Form 12

The good news is that the tax on the rental income for 2022 will not be due until November 2023. You will have to file a tax return in 2023 detailing the income, the allowable costs and the profit. When you file the return, Revenue will calculate the tax due and it need to be paid by end October/mid November 2023.

Normally under self assessment you have to pay preliminary tax in the year of assessment, but as this is your first year this does not apply. In Oct/Nov 2023 you will have to pay the tax due for 2022 and preliminary tax for 2023 based on either the tax paid for 2021 or your estimate of the tax due for 2023 - so in effect you will have to pay two years tax in one go. After that, you will have to pay any balance due plus the preliminary tax for the next year.

If you have records of the expenses, you can probably dispense with an accountant but using an accountant at least for the first year, will probably help to make sure you claim the correct allowable expenses

 

[Paul O Mahoney]

I own the property from when I was single. I am married now with a family. I am the named landlord with the PRTB. Only rented out property since Marxh 2022.

JPD has given you a more comprehensive reply than I would ever be able to.

 

[elcato]

The process for paying your tax on this starts around Febuary 2023 when you need to apply/register to be a chargeable person for 2023. If you apply now they will expect a form 11 in 2022. You apply by email and it takes a week or so to get registered and get an account for ROS (As opposed to MyAccount that you probably use now online).
I suggest you read this thread above for examples of what can be claimed for and what not.