Based in Roscrea, Co Tipperary, Liam McGrath & Co, Chartered Certified Accountants & Chartered Tax Advisers, established in 1992, has grown steadilyover the last 24 years.
We are relocating our Laois office to Dublin Road, Portlaoise in the office of Elite Auctioneers, opposite St Peter and Pauls Church in the town centre.
We prepare individually tailored 5 year tax plans for each client and update them on an annual basis, ensuring you minimise the tax you pay.
Taxation Planning and Compliance
As Chartered Tax Advisors, we provide advice on the most effective way to structure your business from a taxation viewpoint, and ensure your tax affairs are dealt with in a timely and efficient manner.
We can ensure that you meet your obligations with regard to Income Tax and Corporation Tax, VAT, Employer Taxes and CGT Liabilities, etc. and provide advice on tax returns and payment of liabilities when they fall due.
We are members of the Association of Chartered Certified Accountants (ACCA) and of the Irish Taxation Institute (AITI).
Both are highly regarded organisations, with ACCA an internationally recognised qualification, and AITI seen as the pre-eminent tax advisory qualification in Ireland, with its focus on Irish taxation law.
Indeed Inspector of Taxes themselves often hold this qualification.
Some Issues for Landlords to consider - Rentals:
Revenue audited hundreds of landlords over the last few years which resulted in substantial tax liabilities. Issues arising were some landlords are receiving TRS credit on their rental mortgages through their bank, which is not allowed.
For a high rate tax payer, they will save twice as much tax by not claiming the TRS credit, and keeping the rental interest (albeit that only 75%is allowed) for offset against rental income.
There have been a number of significant changes to both the taxation, and the extra administration work associated with these properties over the last number of years.
One of the most important items is to register with the PRTB (Private Residential Tenancies Board) either online via PRTB.ie or by completing the PRTB form. This must be renewed every 4 years if the tenancy does not change or at every change of tenancy. It is essential that this is completed on time as PRTB are fining landlords for non compliance but more importantly from a tax point of view, the rental mortgage interest on the property is disallowed for income tax purposes.
As this is the main expense for offset against the rental income, this will result in a large income tax bill, especially for those already paying the high rate of income tax.
Other Rental Expenses:
A landlord should keep receipts for all of the following which are allowable for deduction against rental income: insurance, repairs & renewals, agent letting fees, 1/8 per annum of cost of furnishings and fittings over 8 years, some telephone and motor costs, and other rental costs.
Local Property Tax (LPT):
Any self employed person or a proprietary director who does not pay the LPT on time each year, will be liable to an extra 10% on their income tax for that year which can be a significant increase in taxes.
Landlord and Self Employed?
A self employed person with a number of rental properties, should consider incorporating the trade/business into a company, thereby leaving the rental properties liable to lower rate income tax.
This would need to be discussed with a professional tax adviser before proceeding.
Liam Mc Grath & Co. FCCA, AITI Chartered Certified Accountants & Chartered Tax Advisors
Dublin Road, Roscrea, Co Tipperary. 0505 22992
Dublin Road, Portlaoise, Co Laois (Elite estate agents office)
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