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Landlords Beware! You are probably paying too much tax!

Landlords Beware! You are probably paying too much tax!



1. The landlord property market


2. Poor cash-flow, unexpected tax burden or difficult tennants


3. From the software you can: 



1. The landlord property market


The landlord property market is a hard place for anyone to navigate, especially in Ireland. Whether you are looking to rent a flat in the bustling streets of Dublin or renting an apartment with a seaside view in Wicklow, you should be aware that you could be losing large amounts of your potential income from your rental property. 


With prices in the Irish housing market fluctuating over the past few years; the last year has seen a 6.2% increase in the index for house prices, but if you are a landlord, your financial priorities cannot depend on the recent surge in house prices. Can an accountant or financial advisor help keep your head above water? 


Cash-flow is a critical pillar to any small and medium-sized property business. A qualified and experienced accountant can help you save money on your rental apartment by exposing the benefits of hidden tax rules in Ireland, specifically written to help bolster Irish landlord income.  


Your rental property and your rental income are perhaps subject to these rules too. If you are an owner you should ask yourself these questions.


  • When do I need to file a tax return for my rental Income and if it's late what are the consequences?


  • How do I compute my Rental Profit and what tax must I pay?


  • What can I deduct to reduce my Rental Profit and consequent Tax Liability?


  • Am I entitled to claim Rent a Room relief?



Released this year, a large survey from the Residential Tenancies Board was one of the most comprehensive reports on the rental property market ever conducted for Ireland. 


The report itself shows a generally healthy level of satisfaction among tenants, with only 3% reporting “dissatisfaction” with their rental property. 


However the report’s diagnosis for landlords is vastly graver: 25,000 fewer rental apartments in Ireland since 2016. So why are landlords in Ireland selling up? 


The survey clearly shows that many landlords leave the property sector for financial reasons.



2. Poor cash-flow, unexpected tax burden or difficult tennants


The good news is that there is a simple solution for Landlords: contact a qualified accountant or financial advisor.


As professionals of the financial industry, an accountant or financial advisor will have an eye trained to spot the opportunities to potentially reduce your tax liabilities from your rental profit, keep your tax returns up to date and most importantly keep you informed of important deadlines to avoid any unneeded costs or penalties. 


Along with this, they can also guide you through the process of expanding your landlord property portfolio should your business be in the growth phase. And, let’s face it, sometimes business does not go the way you planned. Accountants, if you choose the right one, can offer a helpful, analytical but sympathetic approach should your business be doing badly. 


The emergence of websites such as  www.daft.ie or www.rent.ie has made the process of both letting and renting faster, easier and cheaper compared to working with a letting agency. As a landlord, there are numerous advantages to chucking away your old filing cabinet and embracing the digital revolution taking place around you. 


A qualified accountant or financial advisor can set up your property business digitally, to smooth out the process of reporting your revenue streams from your properties in Ireland. 


With the use of technologies such as Sage, landlords can have full control and visibility of their finances at the touch of a button.


It’s easy-to-use design facilitates all your financial processes, making managing your properties hassle-free and even a pleasure to do. 


3. From the software you can: 


  • Organise and associate transactions and bills in just a click
  • Send bills and receive payments instantly
  • Organise your inventory by product category, price, and more
  • Connect Sage to your bank account to compare cash flows with transactions
  • Automate VAT payments and create dashboards


Whether your property portfolio is the size of a shoe box or half the size of Leinster, you need to look at the financial health of your business. If you are looking for any sort of information relating to letting your property contact Armstrong Associates Chartered Certified Accountants for the answers to your questions.



                                           Landlords Beware! You are probably paying too much tax!

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