Do I pay household charge on my business address?

Q&A:I paid the household charge for my family home, where I reside most of the time. I sometimes also reside in my B&B (a small business) where I pay NPPR (€200). Am I required to pay household charge for my business address as well as the NPPR? Mr ND, Dublin

It appears you may have to pay the household charge in respect of both properties.

The situation with your home is very clear. In relation to the B&B, I am somewhat confused by your reference to the non-principal private residence charge of €200.

It is certainly the case that anyone paying the NPPR for a second home is liable also for the household charge, as I stated last week and as evidenced by the landlord reported during the week who forked out €19,000 for his 190 properties.

There has been some confusion in relation to commercial premises, including bed and breakfast businesses.

What now appears clear is that where an entire premises is subject to commercial rates, it is exempt from the household charge. If only part of a premises is covered by the commercial rates, then the balance is liable to the household charge as it is used essentially as a private dwelling.

With BBs the situation is even more complicated because I understand they continue to be exempt from commercial rates despite several recommendations to the contrary over recent years.

That being the case, it is very difficult to give you a definitive answer with any assurance. I would imagine that the same position broadly would apply as with commercial rates – i.e. if part of the property is private, then the charge applies. As you say you occasionally stay there, I am guessing that you may be liable.

However, the only way to be certain is for you to contact your local authority. If liable, of course, you are now past the registration deadline and will be liable for penalties and interest surcharge.

Claiming allowance for managing my property rentals

I own three small rental properties. I employ an agent to look after my tenancies, to liaise with tenants and to look after whatever requirements may arise from time to time. I pay a professional fee to my agent exclusive of maintenance expenditure. I include this fee as a deductible item in my tax return. Now, because of diminishing returns, I may dispense with my agent and do this work myself. Can I claim an allowance for myself?

Mr DN, Dublin

Unfortunately not. The Revenue sets down pretty clearly what expenses are allowable in terms of property rental.

Essentially, the rule is that any cost actually incurred in the provision of professional services and or maintenance and repair is allowable either as an expense set against rental income or as a capital allowance over a longer period of time.

However, the Revenue rules specifically exclude landlords making any deduction against rental income for their own “labour”.

If you employ an agent to manage the properties, vet tenants and oversee necessary repairs during tenancies, the 10 per cent or so of rent that they will charge is an allowable expense; if you do the same work yourself, it is not.

Will savings income mean I lose medical card?

Your column of March 20th refers to eligibility for a medical card. My semi-state pension is €612.33 weekly and I have €184,170 in savings and am married. The difference between the weekly earnings limit of €1,400 is €788. My query is: can I earn €788 in weekly interest and still be eligible? What is the weekly income from the savings of €184,170 using the notional rate and the €72,000 disregarded?

Mr B.O’M, email

When it comes to medical cards, you are effectively talking about a means test and how that works depends in part on your age.

From the tenor of your question, I am assuming you are 70-years-old or more as the €1,400 weekly income threshold for medical card eligibility applies only to married people in that age bracket.

All income is taken into account and, in your case, you state that to be €612.33. You must be sure that is the total income coming into the house – including dividends, rental income, any income due to your partner, etc.

Then we are down to savings.

For people over 70, the first €72,000 of savings is discounted. As you have stated savings of €184,170, we are left with a figure of €112,170.

If you are receiving a set interest rate on these, that will be the rate that applies in assessing your income from these savings. If not, a “notional rate” will be applied by the Health Service Executive. This changes from time to time.

Under the notional rate, as I understand it, the first €10,000 in savings over the threshold attracts a notional weekly income of €1, the next €10,000 yield a notional weekly income of €2 and the balance, a notional weekly income of €4.

In your case, the first €20,000 of your savings above threshold delivers weekly income of €3 under this calculation, with the balance yielding €36 or €40, depending whether the rate applies to each complete €10,000 or to every part thereof.

At the higher figure, you would be looking at a weekly income of €43 per week as I understand it, which should leave you eligible for the medical card.

This column is a reader service and is not intended to replace professional advice. Please send your questions to QA, c/o Dominic Coyle, The Irish Times, 24-28 Tara Street, Dublin 2, or to dcoyle@irishtimes.com. No personal correspondence will be entered into.