Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Accepting social benefit?

Options
  • 08-09-2008 9:12am
    #1
    Irishcrx
    Registered Users Posts: 2,861 ✭✭✭


    One of my friends has asked can he rent a room from me as the lease in his current place is about to run out, I don't mind but he has asked me will I accept social welfare rent allowence and i'm not quite sure how this works , he says they will pay a certain percentage of his rent but from what I've heard this can be messy. Will I be taxed and have to register as I don't really want to be taking on a lot of extra effort/ Anybody shed some light please?


Comments

  • Options
    #2
    John Mason
    Hosted Moderators Posts: 10,661 ✭✭✭✭John Mason


    Dont know exactly how it works but you can earn €7,700.00 (i think) from renting a room before you have to pay tax on it.

    If you log on to www.revenue.ie, you can see the exact figures


  • Options
    #3
    jetski
    Registered Users Posts: 820 ✭✭✭jetski


    its €10,ooo.oo before you pay tax


  • Options
    #4
    Emerald Lass
    Closed Accounts Posts: 439 ✭✭Emerald Lass


    As far as I know he won't get social welfare for the rent a room scheme, only if he is renting the entire house. Sw gives 90% of the rent each month, and teh tenant pays the 10%. If he only wants to rent a room he needs to contact social welfare and apply on a different basis for benefit - such as the rent a room scheme.

    You may have to work a fiddle for him to rent the house - i.e pretend you don't live there, and if that were the case you would have to register the property with the PRTB and arrange tax etc. But if you got caught the repercussions for both of you would be huge. So I don't recommend it!

    There are pros and cons to taking SW - one pro is that you can arrange for the money to be paid direct to your bank account, meaning that you get 90% of your rent each month directly. A cons is that some SW tenants treat their rentals quite badly.

    As you already know this person as a friend, if you think they are good tenant and trust them, then you don't need to worry too much.

    But another worry is living with a mate - you know the old saying if you want to know me, come live with me! It could be the making or the end of a friendshp if you live together!

    Done be surpirsed if you get asked to say the rent is higher than it is so that he doesn't even have to pay 10% - but you will then be taxed on rent you are not receiving.


Advertisement