Working with several property owners daily we realise that many owners are unaware there is a tax relief due to them as PAYE workers at the standard 20% rate.
Income tax relief is available for individuals who pay service charges to local authorities and other independent contractors. Relief is given for service charges paid in full and on time in the previous calendar year.
Service Charges which qualify for tax relief are all service charges paid to Local authorities for the provision of domestic water supply, domestic refuse collection, domestic sewage disposal, group water schemes for domestic water supply. There is also tax relief for Independent contractors for domestic refuse collection or disposal.
For more detailed information on this you should contact your local revenue office or you may download the tax relief form 'IT27 Tax Relief for Service Charges'
There will be elements of your service charges that do not qualify for this tax relief such as sinking fund or Managing Agents Fees, however as all PAYE property owners are entitled to claim this relief on other services we recommend that you do this. A.K. Property Services provide a detailed breakdown of all service charges so any property owner can easily calculate their individual costs in all areas. Should you require any assistance in completing your IT27 you should contact your Managing Agent.
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