Should I let myself be rushed?
Q: I’ve been on the affordable housing waiting list for a long time now, and recently received a phone call from my Local Authority, who asked me to view an apartment and to let them know whether I wanted it within a week. I went to see it, and it looks great – in fact, it’s the first half-decent place I’ve been offered! I told them I’d take it, but I feel a bit rushed into the decision. Is this normal? And can I back off if I need to?

A: Local Authorities aren’t normally this pushy in my experience, but I suppose they or the developer would be keen to shift the units quickly at the moment. I’d be slightly wary. Put signing anything on the long finger while you approach the whole thing with care, making sure your ‘snag list’ of issues with the apartment is thorough. More than anything, look at the valuation carefully while you’re going through the loan approval process, as this may explain the Local Authority’s eagerness to railroad you into the sale. It’s very possible in this falling market that the bank (or an independent valuer that you hire) will value the property at a lower price than you’re being asked to pay. In this case, you should ask the Local Authority to revise the value they placed on the apartment. Ultimately, it’s their call whether they’ll lower their valuation or not, and some Local Authorities are better than others at meeting people half-way on this issue. If they’re clinging to an unreasonable asking price, then you’re justified in pulling out of the sale and asking for a full refund of your deposit – in fact, your bank will probably force you to.

Does she qualify for longer maternity leave?
Q: My sister has recently had a baby and is on maternity leave. However, she’s quite sick and is in hospital at the moment. Will this extend the time that she’s able to spend on Maternity Leave – does the period when she’s sick qualify her for Illness Benefit, for example? She’s got herself worried about this now, as she doesn’t want to miss out on time alone with her baby. At this point, an answer either way would help her focus on just getting better.

A: Unfortunately, you can only postpone maternity leave if the child itself is in hospital. As this isn’t the case, the best thing she can do is to concentrate on getting better, so she can get back to her baby as soon as possible. For what it’s worth, I hope she gets well soon.

Can I get my deposit back?
Q: I recently moved out of an apartment and (surprise, surprise) my ex-landlord is refusing to return our deposit. She’s claiming that €1,800 worth of damage has been done to the apartment, which I know is nonsense – the place was in near-perfect condition when I moved out. I’ve been offered an email showing a breakdown of the €1,800, but surely I don’t have to just accept this? What can I do?

A: First off, get the email from the landlord. Also ask for receipts to make sure that the figures she’s quoting for the damage aren’t inflated. That will give you a firmer idea of why she’s hanging on to your deposit. Legally, a landlord is only entitled to withhold a deposit if a tenant didn’t give proper notice before leaving, left outstanding bills to pay, or caused damage beyond normal wear and tear. Assuming you gave her proper notice and took care of the bills, that plunges you into the fuzzy area of damage to the apartment. It’s difficult to define what ‘normal wear and tear’ is, and this is where you might want to make contact with the Private Residential Tenancies Board (PRTB). They run a dispute resolution service, which is generally geared towards finding a middle ground between tenants and landlords, and is particularly useful for fuzzy areas of the law such as this. It costs €25, and you may not get the full deposit back (assuming the landlord’s claim has some basis in reality), but you have nothing to gain from a long stand-off anyway. 
 

Has my stock punt turned sour?
Q: I bought shares last year in a promising-looking Irish company, but trading in the stock was suspended in January. I thought that it was just a short-term thing, but it seems to be ongoing. Does this happen often? Will I ever see my money again?

A: While this kind of thing does happen (and is likely to get more common in a tougher business environment) it is quite rare, usually arising when a company is in critical litigation or deep trouble. In fact, I can almost guess which stock you bought based on what you’ve told me! It’s worth making contact with the company to find out more about the situation and whether the legal issues that caused the stock to be suspended have been resolved. It’s likely that your shares are going to take a dip in value. Based on what you find out about the company and its management team, you’ll have to make a call on whether to stick with the shares or not. If it’s a well-run outfit, and the conditions that made the stock so promising when you bought it still exist, my instinct is to hang in there.

How can I prove my earnings?
Q: I’m currently self-employed and my partner wants to apply for Home Carer’s Allowance to look after our daughter. However, I’m being asked for proof of my income. I’m a total novice, so don’t really have any kind of book-keeping system set up – I just have a folder with mounds of receipts. Will this kind of information do?

A: I’m afraid the Social Welfare service is highly unlikely to accept that. In any case, it would be a good idea to do some basic book-keeping and find out if you’re actually making any money! If you’re feeling particularly intimidated by accounting (judging by your current approach, that seems a high possibility) consider hiring someone to do it on an ongoing basis or to set up a simple book-keeping system for you. It’ll be worth the investment.

Do I face tax trouble?
Q: I’ve recently decided to leave Ireland and have accepted a job in Abu Dhabi – a big leap, I know! My salary there will be tax-free. I want to find out whether there are any tax implications here in Ireland, as I’m hoping to return home in a few years. I’d also feel a bit more comfortable having my money in Ireland, so I’m thinking of transferring part of my salary back here every few months to put in a savings account. Would it be subject to any taxes if I do this?

A: Congratulations on a pretty bold move, and I’m glad to have some good news for you. Once you spend less than 173 days in Ireland, you’re no longer a tax resident here, so all your income tax liability will go towards your country of residence – in this case, you’re in the clear. As for sending money to an Irish deposit account, this shouldn’t be a significant tax issue, barring the costs of transferring the money levied by your bank. To tell you the truth, however, I’m not sure if it’s worth the hassle. Abu Dhabi is one of the most stable countries in the Middle East, and their banks are well-capitalised. I’d be inclined to check out what rates are on offer from local banks before making a decision to send your money out of the country. You may well get a better deal, and it doesn’t hurt to ask.

Is this dodgy?
Q: I’ve been renting for about 12 months now and recently signed a lease for another year. I was finally getting around to claiming tax back for my rent and asked my landlord for his PPS number, but he refused to give it to me. Instead, he offered to send me a cheque. Surely there’s something fishy going on here? Should I take the cheque and, if I don’t want to, what are my options? 

A: Yes, this is fishier than the old cod ‘n’ chips, and I suspect that the landlord isn’t keen on the Revenue knowing that he gets rental income. That’s no reason for you to act as an accomplice to fraud, though. While many people would go along with it, it’s neither morally right nor sensible to do this for a quiet life, as it puts you in a messy situation if the landlord gets audited or a dispute arises between you both.
I would hold off taking the cheque (if he insists on sending one, don’t cash it) and claim the tax relief that’s legally due to you. You don’t necessarily need the landlord’s PPS number – usually, if you have his address, that’s more than sufficient to make a claim. I’d also recommend getting the tenancy registered with the Private Residential Tenancies Board (PRTB). It may be a battle getting this guy to do things above-board, but it’s worth the hassle to make sure you enjoy all the legal protections that have been introduced for tenants in recent years.

Should she sign on?
Q: My wife has left her job to raise our kids full-time for a couple of years and, thanks to my salary, I don’t believe she’s not entitled to any payment. Is there any point in taking the time for her to sign on?

A: Whatever about the money now, it’s worth her registering her status with Social Welfare under the Homemaker's Scheme. They’ll note your application for Child Benefit anyway – you should be entitled to this – and will also note her status for her insurance record. This could prove very useful if she wants to claim any contribution-based payments later on in life.

Can I get support?
Q: I was recently made redundant and am thinking about making a change in my career – maybe taking a course in teaching English as a foreign language (TEFL) or payroll through a Certified Payroll Technician (CPT) course. However, will I lose my Jobseeker’s Allowance if I go ahead and take it? Are there any state supports for people in my position?

A: While some state supports are fantastic for people who want to bounce back from unemployment, it’s easy to fall through the cracks and end up missing out. This is particularly true in your case. You’ll miss out on Jobseeker’s Allowance if you go into full-time education, as you’re no longer available for work. As for supports while taking this course, you could in theory apply for a ‘Back to Education Allowance’. You would have to be kicking your heels on Jobseekers Allowance for six months to do this, though, which isn’t ideal.
You may be able to get a bit more success with FÁS. I understand that the state agency has formally recognised the CPT course anyway, providing up to 70 per cent of the course’s cost to eligible candidates, quite apart from the courses they run themselves. Given the fact that you’ve named two very different potential careers, I’m guessing you’re pretty open-minded about your next move. In that case, it would be a good idea to schedule a meeting with a FÁS placement officer, who may be able to suggest courses that would benefit you. It’s better than waiting six months for the Back to Education Allowance, which is geared towards people in long-term unemployment, at any rate! 

Can I apply for Rent Allowance a second time?
Q: I opted out of taking Rent Allowance about two years ago, and moved back to the family home with my partner. However, we recently split up and I’m earning around €300 a week. I was told that I’m not earning enough to be a suitable candidate for affordable housing, so I was thinking of applying again for Rent Allowance. Am I likely to be turned down because I opted out last time?

A: The fact that you previously declined Rent Allowance shouldn’t have any bearing over whether your new application is successful. In fact, because you’ll be applying for Rent Allowance to the Community Welfare Office (CWO) that covers the property you’ll be renting, you may not even be dealing with the same people. Your income and any state benefits you’re receiving will be assessed to decide whether you’re eligible but, from what you’ve told me, it should be ok. I’d recommend that you start looking around for a place and drop in to the local CWO for any property that interests you.

Is my wife liable for CAT?
Q: I recently received a lump sum from my father for a house renovation. It was well below the Capital Acquisitions Tax (CAT) exemption levels for a father-child gift, but I lodged it into a joint account that I have with my wife. Since we’re both benefiting from the renovation, does this mean that she has some tax liability? Or would I be liable if she received a gift from her parents? It’s too late now anyway but, if we were taxed separately with separate bank accounts would that make a difference?

A: Don’t worry about separate accounts – you’re fine. If a gift with no tax liability was made directly to you, what you subsequently decided to do with the gift (in this case, to earmark it for renovations) is your own business. Even if you look at it from a particularly rigorous point of view, there’s no liability as you can treat it as two transactions – one lump sum gift from your father to you, and another gift from you to your wife of half the lump sum. Since there’s no CAT levied on such gifts between spouses, it’s all kosher.

Can I get a tax break on laser eye surgery?
Q: I’m considering getting laser eye surgery, which I understand makes me eligible for a tax break. However, my earnings next year are likely to be a good bit higher than this year, where I’m still paying tax at the lower rate of 20 per cent. Is it possible to get the surgery done now and claim a higher rate of tax relief next year, or is that a no-no?

A: You’ll normally make claims for medical expenses at the end of the tax year in which a procedure takes place, so you won’t be able to claim tax relief at the 41 per cent rate if it’s done this year. If you’re going to be paying tax at the higher rate next year, and the surgery isn’t urgent, it would be financially worth waiting to get the procedure done in January and claim greater tax relief later. It depends, though, on whether holding off will make a significant difference to your quality of life in the meantime. If you don’t think it will, then wait. If it will, then a larger tax rebate simply isn’t worth putting yourself through four miserable months.

Should I switch companies for my AVC payments?
Q: I’m considering topping up my pension fund while I can with an AVC payment. Would it be better to do this with the pension administrators my company already pay, or is it worth contacting a new one?

A: My default answer is that it’s always worthwhile seeing what other companies will offer you – while charges are depressingly similar across the Irish pensions industry, there may be some more promising fund choices available from other administrators. However, if you stick with the existing crowd and can do your AVCs through your company’s payroll, your tax and PRSI relief will be processed automatically at source. The hassle factor of chasing this relief up manually leads many people to take the safer option of going with the existing administrator. However, if you’re making AVCs, then you already know that a secure future is worth a bit of discomfort or hassle in the present. I would arrange a meeting with the present administrator to discuss it if you haven’t already, getting some insight into what fund options you’ll have. If making an AVC contribution through them entails a commitment to the bum bet of Irish equities while ignoring developing markets and soaring energy demand, then forget it. Catching gains from the global megatrends of the next 40 years including peak oil, a switch to renewables, and the inevitable economic rise of China, India and Brazil is well worth making a call to a new administrator and claiming tax relief manually.  

Is it worth a switch?
Q: I’m thinking of transferring a balance of around €2,500 from my credit card to a new card with a zero per cent APR introductory offer. It should take me about five months to pay off. I want to keep my existing card for purchases. Do I have to pay stamp duty on both cards, and is it worth switching if I have to pay it?

A: You will have to pay Stamp Duty on both cards so, ultimately, you’re paying €40 for a five month interest-free loan. Whether the break from interest depends on the rate you’re currently paying now. If you calculate how much interest you would be paying over the five months on your current rate, and compare that to the €40 stamp duty, you should have your answer on whether it’s cost-effective or not. However, based on my rough calculations (and assuming you’re not on a market-beating deal) it should make financial sense.
Be sure, of course, that you actually discipline yourself to pay off this €2500 within the introductory interest-free period. Otherwise, you’ll get stung with a heavy rate once it’s over. Also, if you don’t intend to use this second card, cancel it once you’ve paid off the balance, or you’ll find yourself paying €40 again next year. Meanwhile, consider changing your billing preferences for the first credit card so that your full balance owed is debited from your current account every month – that’s one way to ensure that a big lump sum doesn’t build up again!

Can our child have an offshore account?
Q: Our six-month old son has been given a bank account in America (with money in it) as a gift from an aunt who lives there. While the account is in the baby's name, it was requested without our knowledge – we now need to give his aunt a copy of the baby’s birth certificate for the bank. I’ve heard a lot about offshore accounts and, even though I’ve never heard of a toddler being chased by the Revenue, I’d like to double-check that this is okay. Will there be a problem with him having an offshore account?

A: This should be fine – our tax authorities may have upped their game in recent years, but your son won’t be getting threatening letters any time soon. However, all offshore accounts must be declared to the Revenue. Strictly speaking, you should complete a Form 12 return for your child. It’s crazy, I know, but you may as well do everything properly.

What currency should I pay in?
Q: I do a fair bit of shopping online and love travel, which means I come across foreign-based traders giving me the option to pay them in their home currency or euros. It may just be the strong euro at the moment, but I’ve noticed that a lot of them don’t apply the correct exchange rate. They seem to be creaming a bit from me off the top! Am I better off taking Bureau de change rates and changing cash in advance when travelling, or paying by credit card?

A: ‘Dynamic currency conversion’ is one of those little practices that businesses love, as it allows them to charge you an extra few per cent when you choose to pay in your own currency. It’s a hole in the head for consumers, and means that it’s almost always cheaper to pay a trader in their local currency and get the money converted by your credit card company. Check with your card issuer what charges they’ll levy for currency conversion – however annoying, they should be noticeably less than those charged by most traders. As it’s impossible to check whether you should pay in local currency or euro for every transaction, a general policy of paying for goods or services in local currency should serve you well.
 

Pull-quote 1:  While some state supports are fantastic for people who want to bounce back from unemployment, it’s easy to fall through the cracks and end up missing out.

Pull-quote 2: Our tax authorities may have upped their game in recent years, but your six-month-old son won’t be getting threatening letters any time soon.

Tip!
Even if you don’t qualify for state benefits, it’s worth registering your status with Social Welfare when you’re taking time out of work. Many Social Welfare payments later in life are based on PRSI credits, which you can ‘sign on’ to receive.

Tip!
Exchanging money can sting if you don’t do it cost effectively. While you can’t check the rate on every transaction you make, watch out for traders bumping up their prices when you pay in Euro.

Fact Box:
14.8%
Less workers are employed in construction than this time last year, according to Central Statistics Office (CSO) figures.

Fact Box:
€15,000
Has been sliced off the price for the average Irish home, according to a report compiled by Permanent TSB and the ESRI.