Rent Allowance

MysticalSoul

Does anyone know how rent allowance under the rent a room scheme works?

Xiney

It works the same as through a non resident landlord.

The home owner still needs to sign the forms and so on.

MysticalSoul

I have someone interested in the room, who got made redundant. I do send in details of what I am charging into revenenue every year - not sure how this is the same as a non resident landlord? A tenant of a non resident landlord withholds the tax portion of the rent, but as I am well under the €10,000 threshold, that part would not apply to me.

Xiney

I meant non-resident landlord for landlords who don't reside in the premises. You're talking about non-resident landlords who are not resident in the state. Sorry for the confusion.

You will have to send in details of your income from the rent every year whether your tenant is getting rent allowance or not. You don't get charged tax up to 10000 but you still have to report it.

MysticalSoul

I do that anyway. So, I take it I can take a lodger claiming RA so? Does the RA come to me directly or the lodger? Does the RA come in on time etc. What about when/if lodger finds employment - is it up to me or lodger to inform them of this?

Xiney

It seems to vary as to whether the payment goes to the landlord or the tenant.

I'm afraid I don't know about payments being on time.

As far as who is responsible for letting the social welfare and the HSE know that the tenant has found work, it is ultimately up to the tenant. However, if the tenant is working while getting benefits, you can report them for welfare fraud.

MysticalSoul

Thanks for your input. I do appreciate it. Never been in this situation before. Anyway, potential lodger is coming over later to have a look, so will look into it more after I have met him.