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As you’re aware, a Tax Clearance Certificate is Revenue confirmation that your tax affairs are in order.  From 21st May 2021 Revenue will recommence their assessment of the tax clearance status of businesses.  Your Tax Clearance Certificate may be withdrawn or rescinded if you become non tax compliant or if your tax clearance has expired.  This relates to taxes under all headings including VAT, payroll, personal and business taxes.

Please be aware that this may result in the rescinding of the tax clearance status of businesses that are currently in receipt of the EWSS and/or the CRSS.  It is essential to check the status of your tax clearance as your business may becoming ineligible to receive further payments under these schemes until the compliance issues concerned are fully resolved.

If Revenue have contacted you to remind you of your requirement to file outstanding returns or to address other compliance issues in order to retain your tax clearance status, please make sure you do so as a matter of urgency.

In summary, businesses which are reliant on the EWSS and/or the CRSS should take immediate action by contacting Revenue and addressing the outstanding issues.

For further information, please click: https://www.revenue.ie/en/starting-a-business/tax-clearance/tax-clearance-under-review-refused-or-rescinded/tax-clearance-certificate-rescinded-withdrawn.aspx

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Mortgage Interest Relief – Income Tax Consultants – Personal Tax Advisors

The Revenue Commissioners have just published a useful guide on mortgage interest relief (Tax Relief).  As you’re aware, the Mortgage interest relief rate is 30% for first time buyers who took out their first mortgage between 2004 and 2008.  The rate is 25% for first time buyers who purchased in 2012 while the rate is 15% for non first time buyers who purchased in 2012.

The key points in Revenue’s Guide on Mortgage Interest Relief are:

1. Tax relief for mortgage interest on a home loan is tax relief given to mortgage holders based on the interest paid on a qualifying mortgage on your home.

2. This includes a new mortgage for a home, a top up loan used for the purposes of developing or improving your home, a separate home improvement loan, a re-mortgage or consolidation of existing qualifying loans secured on the deeds of your home.

3. The relief is given at source, by your mortgage provider, either in the form of a reduced monthly mortgage payment or a credit to your funding account.

4. You do not have to be earning a taxable income to qualify for mortgage interest relief.

5. You can also claim tax relief in respect of the interest on a mortgage paid by you for your separated/divorced spouse or former partner in a dissolved civil partnership.

6. You can also claim tax relief in respect of a dependent relative for whom you are claiming a dependent relative tax credit (i.e. widowed parent or a parent who is a surviving civil partner or elderly relative).

7. Switching lender or mortgage type to achieve a better interest rate is not the same as taking out a new loan. However, a new mortgage when you move home and take out a mortgage with a new or existing lender is eligible for relief.

8. A mortgage taken out from 1st January 2004 to 31st December 2012 used to purchase, repair, develop or improve your sole or main residence, situated in the state, is eligible for mortgage interest relief until 31st December 2017.

9. Mortgages taken out after 31st December 2012 will not qualify for mortgage interest relief.

10. Mortgages taken out prior to 1st January 2004 are no longer eligible for mortgage interest relief.

11. Top up loans / equity release loans taken out since 1st January 2004 on these pre-2004 loans may be eligible for the relief provided they are used to purchase, repair, develop or improve your sole or main residence situated in the state.

12. From 1st January 2012 the rate of relief for first time buyers who took out their first mortgage between the years 2004 and 2008 and are residing in the property increased to 30% until 2017.

13. If you took out a loan outside those dates the existing rules remain unchanged.

14. Mortgage interest on loans taken out for investment, rental, secondary or any properties other than your main residence does not qualify for interest relief.

15. If you are living in the state and paying a mortgage to a qualifying lender in the state but working in Northern Ireland, you can still claim mortgage interest relief in this country provided you have a PPS number.

16. Other loans such as loans in sterling (UK currency) are not eligible for relief through the Tax Relief at Source Scheme but may be eligible for relief from your local tax office.

17. Where a parent is a co-mortgagor/guarantor and is not living in the mortgaged property or making any repayments on the mortgage, the person’s eligibility for the Relief at the rate applicable to the first time buyer is not affected by the fact that a parent is also party to the mortgage deed.

18. Home loans taken out in 2013 or later do not qualify for mortgage interest relief.

For further information please click: https://www.revenue.ie/en/property/mortgage-interest-relief/index.aspx#:~:text=Mortgage%20Interest%20Relief%20was%20a,31%20December%202012.

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.