claiming rent as tax back

Random

I pay my parents x amount in rent each month. How much can I claim for back before they'll get hit for more tax?

Anyone have any experience?

Eoin

ciaranfo wrote:

I pay my parents x amount in rent each month. How much can I claim for back before they'll get hit for more tax?

Anyone have any experience?

I am presuming that you are renting a room in their house. They can earn up to €7620 per year, but they have to declare this income in their tax returns regardless.

Random

So you're saying if I start claiming tax back on rent over the last 4 or 5 years that my parents are going to be contacted to verify this? And they're going to get done for not declaring it?

Eoin

ciaranfo wrote:

So you're saying if I start claiming tax back on rent over the last 4 or 5 years that my parents are going to be contacted to verify this? And they're going to get done for not declaring it?

I don't know - I was just going by what's on this page. You will have to supply their PPS number, so I would imagine they will chase it up from there. An accountant would be be better suited to say whether they would be done for not declaring income that would have been tax free in the first place. I'd thought that Accomodation / Property forum would be more appropriate than this one?

Random

Right, I'll bump this up again as I really need to get it done.

Can I buy a reciept book and make out reciepts for all the payments to my parents since I started working full time 2 years ago? (provided they are all actual payments of course ..).

Will my parents be taxed for it? Or done for not declaring it? Has anyone done this successfully?

Thanks.

zAbbo

Of course you're parents tax details will be assessed !

I assume they haven't declared this income.

Move out ya big lump

Random

Yah, the big lumps staying here til he finishing his part time college course

It's not a huge amount of income really ... how much can they "earn" without having to declare it? Or if they have to declare everything anyway, how much can they earn before paying extra tax on it?

I don't wanna bother them too much with it, is there an easy way they could declare for this and previous years without major hassle?

spunkymunky

I claim rent relief and so does my brother. Im paying about 250 a month. Fill in the rent 1 form and send it of. I was able to back date couple years aswell. Your parents can earn up 7K or something like that before it affects their taxes.
You get lump sums for the years gone by and backdated tax for this year. No rent book needed or any proof of rent at all. Simple!!

Random

spunkymunky wrote:

I claim rent relief and so does my brother. Im paying about 250 a month. Fill in the rent 1 form and send it of. I was able to back date couple years aswell. Your parents can earn up 7K or something like that before it affects their taxes.
You get lump sums for the years gone by and backdated tax for this year. No rent book needed or any proof of rent at all. Simple!!

When did you last submit a claim?

zAbbo

you get around 300 euro per year, and can claim for the last 2, afaik.

Check the CI site - http://www.citizensinformation.ie/search?SearchableText=rent+relief&x=0&y=0

spunkymunky

I claimed last year for '04 '05 and 06. Only have to do it once.

Random

@zabbo
The CI link you gave me says you don't need reciepts for the rent-a-room, but the form "rent 1" requires reciepts and doesn't mention rent-a-room. Any ideas?

@spunkymunky
Are you in the same position as me living at home? Did you require reciepts etc?

i71jskz5xu42pb

I'm pretty sure the rent a room scheme was closed off in the last budget for people living at home - have a look for yourself, I didn't read it in detail.

http://www.askaboutmoney.com/showthread.php?t=42935

Random

Interesting read but unfortunitly (correct me if I'm wrong) it lacks any real links to sources?

My understanding of the read is that I can claim for 2005/2006 living at home with my parents under the rent-a-room scheme and my parents would pay no tax on payments up to 7000 euro in each year, but for this year I would need reciepts and my parents would need to pay tax on it?

Is that correct?

Thanks lads, sorry if I keep repeating - it's all very confusing.

TCollins

PaschalNee wrote:

I'm pretty sure the rent a room scheme was closed off in the last budget for people living at home - have a look for yourself, I didn't read it in detail.

http://www.askaboutmoney.com/showthread.php?t=42935

It was indeed.
The possible effects for the OP claiming back tax might be something like the following.

They wont get it from this year anyway.

They are alerting revenue to money that the parents are receiving as rent.

Do parents now have to register you with PRTB - i wouldnt think so.

Do parents now have to fill in forms at the end of every tax year - Probably, but they should do this anyway. Everyone should, because you can bet every PAYE worker is owed money from the tax man going back several years - but thats another story for another thread.


So, In a family situation, i dont see the harm in applying at all. You may get it backdated for several years up to this year, so i think its worth applying for it retrospectively.