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Renting out my home and studying abroad

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  • 15-06-2018 10:15pm
    #1
    Anynameisgood
    Registered Users Posts: 3 ✭


    Anyone know the tax implications of renting out my house and moving abroad to study?

    Am I still liable to pay the usual PAYE, USC on the rent even though I will not be working for 12 months?

    Thanks for input


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    #2
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Anynameisgood wrote: »
    Anyone know the tax implications of renting out my house and moving abroad to study?

    Am I still liable to pay the usual PAYE, USC on the rent even though I will not be working for 12 months?

    Thanks for input

    PAYE is not paid on rent.


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    #3
    TomOnBoard
    Registered Users Posts: 5,111 ✭✭✭TomOnBoard


    Anynameisgood wrote: »
    Anyone know the tax implications of renting out my house and moving abroad to study?

    Am I still liable to pay the usual PAYE, USC on the rent even though I will not be working for 12 months?

    Thanks for input

    Income Tax, USC are still payable on profits. 80% of mortgage interest and other allowable expenses can be offset against rent received in arriving at the taxable profit. Once profit has been computed, then tax credits and allowances would come into play.

    HTH


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    #4
    Anynameisgood
    Registered Users Posts: 3 ✭Anynameisgood


    4ensic15 wrote: »
    PAYE is not paid on rent.

    You will be subject to PAYE and USC on your rental “profits”

    This is from a tax tips for LLs website


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    #5
    Anynameisgood
    Registered Users Posts: 3 ✭Anynameisgood


    TomOnBoard wrote: »
    Income Tax, USC are still payable on profits. 80% of mortgage interest and other allowable expenses can be offset against rent received in arriving at the taxable profit. Once profit has been computed, then tax credits and allowances would come into play.

    Only 75% of the interest portion of a mortgage repayment is allowed as a tax deduction against the rents received

    This is from the same website


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    #6
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Anynameisgood wrote: »
    You will be subject to PAYE and USC on your rental “profits”

    This is from a tax tips for LLs website

    You will be subject to income tax, not PAYE, which is simply a collection mechanism and not a tax. PAYE is collected by employers and remitted to the Revenue. A landlord in receipt of rental income does not have an employer to deduct PAYE.


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    #7
    davemie
    Registered Users Posts: 99 ✭✭davemie


    You will have to pay tax, usc etc. and you will receive tax credits as normal. So most of the tax you pay (just as if you had a salary) will be 20% minus tax credits.


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