Tax issues with landlords abroad

Q My landlord (a friend, Irish) now lives in Australia. He has supplied me with his Irish bank-account details into which I am to pay my rent every month. I have heard anecdotally of a similar situation where there was a tax problem for the tenant and the foreign-based landlord and it made me nervous, but I am having trouble finding out any details .

A As your landlord lives outside the State and you pay directly to him, then you must deduct tax at the standard rate (20 per cent) every month from the gross rent. Revenue (revenue.ie) gives this clear example: gross rent = €1,000; tax deduction: €200, pay to landlord: €800. The same site also points out that if you don’t do this, then as a tenant, you may be liable for the tax that should have been deducted. At the end of the year you must complete Form R185, again available on the Revenue site. The landlord then claims this as credit on his annual tax return.

The situation would be different if your landlord had appointed an agent to handle the rental. In which case, you would pay the full amount and the agent would handle the tax details. For renters, it’s a question worth asking prospective landlord and some renters simply won’t want to get involved with the extra work of filling out Revenue forms.

Also, as some landlords are reluctant first-time landlords, they may not be aware of this stipulation from Revenue, and you may want to download the details from the Revenue site before you approach your landlord/friend – in case he thinks you are simply trying to knock some money off the rent.

Am I liable for workers in my house?

Q To what extent is a homeowner responsible for workmen in the house. We are due to get our chimney stack stripped and replastered, which involves scaffolding and other equipment. My partner is concerned that if something happens, such as an injury, there could be a claim on our insurance.

A When you are getting quotes for your chimney job, it is crucial that you first get three quotes from builders who come recommended. Part of that quotation process should be ensuring that the builder has up-to-date liability insurance – with written confirmation from them that it is in place. You may find, for example, that a builder with no insurance can quote lower – but in the long-run, if there is a claim on your policy due to accident or injury on your property, that cheaper quote could turn out to be very expensive.

Getting work done on the roof is of course potentially dangerous, which is probably why the issue of liability has cropped up in your partner’s mind, but the same applies for any work. A painter in your kitchen falling off a ladder could cause significant injury to themselves, for example. It is the responsibility of anyone employing any tradesman or anyone who comes into their home to work to ensure there is adequate liability insurance in place.

Your questions

Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irishtimes.com. This column is a readers’ service and is not intended to replace professional advice.