Rent a room scheme question

jondom

Hi

I have owned and lived in a house since 2006 and have been renting 2 rooms since day 1.
I have never declared this to the taxman due to laziness and general ignorance. My tenants have never tried to claim tax relief so it was never an issue. I've decided to declare now as there may be money to be made!
So my questions are, what information do I need to have when I go into the tax office? Can I make a claim for tax relief for over a number of years or just for last year? Can I get in trouble if I tell them that rooms have been let out for 4 years and i never declared it?

Thanks for your help.

Jondom

jenniwenni

If the GROSS income from renting these rooms is under 10K you don't have to do anything.

If the income is under 10K You can still file a form 12 to claim any tax relief on medical expenses etc, you just put the income received from renting a room in the exempt section

If it is more you will have to fill in a form 12 tax return, I think you can go back 4 years. You'll be able to claim any expenses arising from renting the room, including mortgage interest (restricted to 75% and proportionate to rental portion) but you will loose personal mortgage interest relief (deducted at source)


I've come across a few situations where revenue requested that you be registered for income tax, not a big deal, but you will have to file yearly returns.

barneystinson

jondom wrote: »

I've decided to declare now as there may be money to be made!

How exactly do you think there may be money to be made?!

cacks100

regardless of whether you are over the threshold for rent a room, it is advisable to notify revenue commissioners that you are availing of this scheme.