Renting room as owner occupier

paddles

How does this work?
1. How much rent can you take in before it's taxed?
2. If you live in the property, do you still need landlord insurance, register with tenant board etc?

snubbleste

1. €10k per annum.
2. No.

The_Morrigan

paddles wrote: »

How does this work?
1. How much rent can you take in before it's taxed?
2. If you live in the property, do you still need landlord insurance, register with tenant board etc?

Although you don't need landlord insurance, you should really tell your insurance company that you have another person living there. Make sure whoever does rent has insurance for their own items.

paddles

snubbleste wrote: »

1. €10k per annum.
2. No.

So what way does it work? If I went over that in any way, is the difference taxed at my tax rate of 41%?

D3PO

snubbleste wrote: »

1. €10k per annum.
2. No.

Just to be a little more specific on point 1. It isnt €10k rent per annum. Its 10K income.

The difference being any money recieved for things like utilities, bins etc also count for the 10k.

You still shouldnt reach it but just wanted to be specific

The_Morrigan

OP the revenue have guidelines on their website

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section2

D3PO

paddles wrote: »

So what way does it work? If I went over that in any way, is the difference taxed at my tax rate of 41%?

if its over by even one cent. Every single bit of it is taxable not just that over the threshold

please be aware you have to file a return regardless of weather you have any taxable liability or not.

paddles

This will probably sound silly but how do revenue know how much you take in as rent anyway? I have rented in houses over the years without signing a single form, just handed my rent in cash to landlord. Or at times, set up a standing order for rent to landlord.
I presume if the tenants claim rent relief, that's different. But is that not enough to inform the revenue?

D3PO

paddles wrote: »

This will probably sound silly but how do revenue know how much you take in as rent anyway? I have rented in houses over the years without signing a single form, just handed my rent in cash to landlord. Or at times, set up a standing order for rent to landlord.
I presume if the tenants claim rent relief, that's different. But is that not enough to inform the revenue?

how do the revenue know people are doing nixers whilst on the dole ? They may or may not find out. Personalyl I think it would be stupid to assume you wouldbe one of those not detected.

If your renting a room your not likely to get over 10k but if you do then pay what you owe.

jelly&icecream

OP, its a matter of filling in one box on the tax return form with the amount you received during the year so its not a big hassle and is worth doing for the piece of mind alone.

You have until the end of october the following year to submit the tax form. So if you start renting out a room this year you have until October 31st 2012 to submit your form.

paddles

I know all that. I was just curious. The rent is clear enough cos I presume potential tenants would want to claim rent relief. That's fine. But I didn't know about that you are expected to include money received for bills etc. Do you really have to submit how much each tenant paid for utility bills during the year? Is that a recent development?

Penny Dreadful

I thought the rent relief was taken away in the last budget

paddles

Was it?? Well THEN how do you prove how much rent you are receiving from rent-a-room scheme for the taxman?????

Penny Dreadful

paddles wrote: »

Was it?? Well THEN how do you prove how much rent you are receiving from rent-a-room scheme for the taxman?????

I don't know:o When I first bought my house (10 years ago) to make ends meet I had to rent out the two spare rooms and never even thought about declaring the income. Not in a bad way I genuinely never thought about it or thought I had to. Years passed and my ex and I broke up and so I'm renting those rooms out again soon and once again never thought that I had to declare the money. Now the most I'll be getting in a year is €6000 (incl bills) so I'll be under the €10k threshold by a long shot but are you saying that I should declare this to the revenue? I've never had to make a tax return in my life, everything has always been sorted out at work tax wise for me.
I'm very confused now. :(

paddles

No, I wasn't saying that. I was referring to the tenants claiming rent relief. I didn't realise it was gone. If you are well under the 10K, you should be fine. I was just wondering how do you prove you are UNDER the 10K if tenants are not declaring the rent via rent relief scheme? I mean with other things for tax, you can show receipts. As owner occupier, you're not obliged to keep receipts for rent, leases or anything from what I can gather. So how do you back it all up?

Penny Dreadful

paddles wrote: »

No, I wasn't saying that. I was referring to the tenants claiming rent relief. I didn't realise it was gone. If you are well under the 10K, you should be fine. I was just wondering how do you prove you are UNDER the 10K if tenants are not declaring the rent via rent relief scheme? I mean with other things for tax, you can show receipts. As owner occupier, you're not obliged to keep receipts for rent, leases or anything from what I can gather. So how do you back it all up?

Haven't the foggiest:eek: I could have the rent relief being taken away all wrong but I genuinely thought that it was removed in the last budget.
Maybe someone else can clarify that.

paddles

Who knows? Just trying to figure out this whole nightmare myself also and trying to figure out what to do myself in the future.:(

not even wrong

Penny Dreadful wrote: »

Haven't the foggiest:eek: I could have the rent relief being taken away all wrong but I genuinely thought that it was removed in the last budget.
Maybe someone else can clarify that.

Rent relief for tenants is being abolished gradually over the next 8 years.