QI am on a tracker mortgage, so my mortgage debts have risen twice since last July following the European Central Bank’s two interest rate hikes. The interest rate on my tracker mortgage was 1.5% before the ECB started raising the rate in July. It is now nearly double at 2.75pc. Tracker mortgages have always been considered gold dust, but I am now considering adjusting my mortgage as I fear the ECB may raise its rates again in the coming months, which would push my mortgage debts even higher. Would it be a good idea to give up my tracker and fix my mortgage?
A Tracker mortgage rates are among the first to rise when the ECB raises its rates. They are also the first to go down when rates are cut, according to Joey Sheahan, credit manager at mymortgages.ie.
Although some lenders have recently raised their flat rates, it is still possible to fix your mortgage at a lower rate than your current 2.75% tracking rate. There are still four- and five-year flat rates out there around 2% or 2.25%.
Opting for a fixed rate now would surely protect you from further interest rate hikes
Opting for a fixed rate now would surely protect you from further interest rate hikes, and it looks like more rate hikes are on the way.
Resolving your mortgage may not be a good idea if you are planning to move soon as you may have to pay a fine if you repay your mortgage early due to a move. However, some lenders are more lenient than others.
If you keep your tracking rate, it will drop when interest rates start to go down. Nobody knows when rates will start to fall, or how long rates will rise, Sheahan said.
Q I am self-employed and preparing for my next tax return. I just stumbled upon some additional revenue from 2020 that I didn’t archive last year by mistake. Is it better to contact revenue directly about it or just include it in my 2022 presentation? Am I liable to a fine?
A If you discover that you have made a mistake in your self-assessment, you should immediately contact your local tax office to explain the mistake and how it occurred, according to Marian Ryan, Taxback.com’s consumer tax officer.
In this case, the 2020 tax return deadline was October 31, 2021, so you have some time to correct yourself. Taxpayers can use self-correction without penalty as long as certain conditions are met.
The taxpayer must notify the Revenue Agency within 12 months of the filing due date of the adjustments made, must provide a calculation of the correct tax and legal interest payable and the payment, in full, should accompany the presentation of the amended return, Mr. .ra Ryan said.
Submitting an amended declaration on ROS does not constitute notification to revenue
It should be noted that the submission of an amended declaration on ROS does not constitute notification to the Revenue Agency as a written notification is required. This could also be done via ROS. Once the terms of the self-correction have elapsed, the taxpayer can still take advantage of the benefits associated with unsolicited qualified communication.
Unsolicited qualifying disclosure is considered qualifying disclosure before the Revenue Agency has issued any notification of intervention. With the full cooperation provided by the taxpayer, the minimum penalty is 3% for cases of negligent behavior and 20% without full cooperation.
In both cases, statutory interests apply.
Q We are a family of two adults and two small children on the VHI First Care 150 Day-to-Day plan. Is this a good cover?
A This is still a good-value semi-private plan that costs € 965 per adult and € 192 per child, according to TotalHealthCover.ie broker Dermot Goode.
If you’re happy with the coverage, Mr. Goode said he wouldn’t recommend changes. However, there is no high-tech heart coverage on this plan, and for some private hospitals, the plan’s coverage is only 75%.
If you are interested in upgrading your coverage, we recommend that you consider the VHI Company Plan Plus Level 1.3 business plan, which costs € 1,245 per adult and € 319 per child.
This is a more comprehensive scheme that includes full high-tech cardiac coverage, full semi-private coverage in all standard private hospitals subject to the policy deductible, and increased reimbursement for outpatient expenses.
You can also split your coverage, which means you could upgrade the adult-only benefits and leave the kids on the same plan if they want to, Goode said.
