"You are in receipt of Rental Income" letter from Revenue

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pipercadet

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Got a letter from the Tax office recently " I understand you are in receipt of Rental Income" and to fill out attached form TR1 for Income Tax.
My story bought my house in 2004 rented out 2 rooms last two years, recieve 8400 euros per year. Mortage payments 8160 per year. Never registered with tax, did i have to as small money (under threshold???). House is my primary residence. I am now not working, back studying.Worried about claw back penelties etc. any similar stories, advice, or solutions. Thanks a bit worried about it.
 
Re: you are in receipt of Rental Income letter!!

Well one problem is that the limit was only €7,620 a year until I think it was last years budget so you would have been over the threshold
 
Re: you are in receipt of Rental Income letter!!

Are you living in the house? Is it rented by persons privately or are they in receipt of rent allowance?
 
Re: you are in receipt of Rental Income letter!!

yes, i wouldnt say i stay there a lot. but its still my primary residence. Also i think they could have applied for medical card, not in receipt of rent allowance, they asked about it ,as one of them was laid off for a while. i didnt sign anything, could of gone ahead anyway, caused this prob maybe.
 
Re: you are in receipt of Rental Income letter!!

yes, i wouldnt say i stay there a lot. but its still my primary residence.
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I suspect Revenue smell a rat here. Do you stay in the house more than 50% of the time?
 
Re: you are in receipt of Rental Income letter!!

pipercadet said:
Got a letter from the Tax office recently " I understand you are in receipt of Rental Income" and to fill out attached form TR1 for Income Tax.
My story bought my house in 2004 rented out 2 rooms last two years, recieve 8400 euros per year. Mortage payments 8160 per year. Never registered with tax, did i have to as small money (under threshold???). House is my primary residence. I am now not working, back studying.Worried about claw back penelties etc. any similar stories, advice, or solutions. Thanks a bit worried about it.
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Given what you have posted in this thread so far I would suggest that you get professional tax advice on the matter ASAP. Even under the rent a room scheme you are supposed to declare the income (even if exempt) as far as I know. But in your case you were above the exemption threshold for a period of time as far as I can see and you may also not actually be an owner occupier.
 
Re: you are in receipt of Rental Income letter!!

well i am there more than 50% of the time, yes it is my primary address etc. Will they throw the book at me altogether, that what i want to know.Does anyone know of how they delt with similar issues. I will be seeking prof advice.
 
Re: you are in receipt of Rental Income letter!!

pipercadet said:
well i am there more than 50% of the time, yes it is my primary address etc. Will they throw the book at me altogether, that what i want to know. I will be seeking prof advice.
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You need professional advice in my opinion.
 
Your situation from what you are disclosing, does not seem to have anything that would arise suspicion I would have thought.

You may have been rumbled by a random bank acc check up( do they can they do this??? I assume they can ... ) or not submitting a form 12 that may have been issued you ?

Have you anything else on the go that may have caused reason for a bit of a check up that may also complicate the issue ?

How do you think it was alerted to?
 
cookie said:
Your situation from what you are disclosing, does not seem to have anything that would arise suspicion I would have thought.

You may have been rumbled by a random bank acc check up( do they can they do this??? I assume they can ... ) or not submitting a form 12 that may have been issued you ?

Have you anything else on the go that may have caused reason for a bit of a check up that may also complicate the issue ?

How do you think it was alerted to?
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or a tenant claiming rent relief....
 
cookie said:
Your situation from what you are disclosing, does not seem to have anything that would arise suspicion I would have thought.
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What about the non declaration of total rental income that was in excess of the rent a room exemption limit?
 
Re: you are in receipt of Rental Income letter!!

bleary said:
Well one problem is that the limit was only €7,620 a year until I think it was last years budget so you would have been over the threshold
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If you go above the threshold, you are liable for tax on the whole amount AFAIK.
 
jhegarty said:
and stamp duty claw back
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If the property was rented out within 5 (pre Budget 2008) or 2 (post Budget 2008) of purchase as an owner occupier. The former seems to apply here so if the original poster is actually classed as an investor because they breached the rent a room scheme and/or are not actually deemed an owner occupier then the SD clawback could also be an issue.
 
Pipercadet - The best way to deal with the Revenue is to be upfront, open and honest about the issues involved. You may fare better than you think. They are very tough but fair too.
That's what I did and while the end result wasn't justice in the pure sense, it was acceptable to me in order to bring closure to a smallscale but irritating problem.
That's what a lot of people have had to do with a lingering tax problem.
I can say positively that where you have profited however minimally from a 'tax oversight' it is very rare in the current taxation climate for them to leave emptyhanded.
As regards how you came to revenue attention, an acquaintance with seriously good revenue experience assured me once that where the revenue contact people with a tax payment claim out of the blue, the reason therefor is usually traceable to a third party and some very obvious activity or incident of recent occurrence, i.e. they don't hang about once they have your scent.
Like that old saying...."there's death and there's taxes".
 
The best way to deal with Revenue where you are not aware of your liabilities etc. is through a professional tax advisor/accountant in my opinion.
 
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