Rent a room and tenants claiming tax relief

schmel22

I am about to rent a room in my house(as I can't rent the whole thing out as I am still within the 1st time buyer stamp duty clause)

If I apply for Rent a room scheme,does that impact on my tenant if they'd like to apply for rent relief? Or does it impact on me..............taking all factors into consideration.

I just need help towards my mortagage and this seemed like a good scheme,or am I blinkered by the jargan???

gamer

it has no effect on you ,you pay no tax as long as rent is under 7k per year,tenant gets around 750 tax allowance,they may ask you to fill in a form,you give them a rent book,best to get em to sign a rental agreement to protect yourself,you are not treated as a landlord .see revenue.ie rent a room scheme, google standard rental agreement uk.see threshold.ie ,get book in easons ,or stationary shop.you will pay no extra tax WHATsoever.
agree tenant pays x amount ,percentage of gas/esb bill.MAKE sure he/she is in permanent employment,get reference from the employer.ie joe is working here full time as a clerk etc

schmel22

hey thanks!

I've just heard that this scheme can turn into a nightmare,I wasn't aware that I had no control over who the tenants are?? The council put them in??? Or is this scaremongering?

spockety

You are confusing the Rent a Room scheme with the Rental Accomodation Scheme run by local authorities.

schmel22

spockety wrote: »

You are confusing the Rent a Room scheme with the Rental Accomodation Scheme run by local authorities.

I don't think I am but maybe the person I was talking to was. So rent a room scheme is just a way of recording what I'm up to basically,ie not renting my whole house out and being liable for the stamp daty claw back

That's fair enough!

spockety

Rent A Room - Exactly what it says. You rent a room or two out in your Principle Primary Residence (i.e. your home), and you can claim up to 10,000 euro in rent in total from your housemates without paying any tax to the Revenue.

http://www.citizensinformation.ie/categories/housing/owning-a-home/home-owners/rent_a_room_scheme/

Rental Accomodation Scheme - You rent out an entire house. You sign up with your Local Authority, and they will find tenants to house in your place and they will pay you the rent directly. It is usually about 10% lower than the market but they guarantee you a tenancy for a defined period (I think it might be 3 years). You effectively become a landlord, and you shoulder the tax burden that goes along with that. With this scheme, you are given no choice as to who is housed in your property. (You will be expected to have vacated the property )

http://www.environ.ie/en/DevelopmentandHousing/Housing/SocialHousingSupport/RentalAccomodationScheme/

Victor

Note - you must declare the rent-a-room scheme income, but there is no tax payable on it.

uncanny

gamer wrote: »

it has no effect on you ,you pay no tax as long as rent is under 7k per year

I think it's up to €10k pa tax free (rent a room)

schmel22

Hey!

Thanks for all your info,very much appreciated

andreac

Can i just ask where you get the form to declare your rent a room scheme? i have a lodger and i need to declare it.
Thanks

Eurorunner

andreac wrote: »

Can i just ask where you get the form to declare your rent a room scheme? i have a lodger and i need to declare it.
Thanks

You need to complete a tax return and declare it in the relevant section.

Thumpette

Hi Guys, Is it possible to have someone on rent allowance renting a room under this scheme?

Victor

I don't see any problem with it.

Mrs OBumble

Thumpette wrote: »

Hi Guys, Is it possible to have someone on rent allowance renting a room under this scheme?

I think so. But be aware that rent allowance (as opposed to rent-relief) is a bit more complicated: the rent cannot be above a certain level, and the landlord is paid the allowance portion of the rent by the HSE which can lead to delays.