Rental income when spouse out of work

blast06

Hi,
I am in a lucky position that i have a pretty nice holiday home down along the west coast. We have not had to rent the house out up to now but are considering doing so now as my wife is about to be laid off (and not intending to return to look to return to work for a few years given 3 young kids). Rental income would be 650-700 per month.

My question is regarding the implications of this rental income to my wife claiming job seekers benefit for 9 months (from next month).
Would she be entitled to it at all given that something like half the rental income is hers - say €300 per month (allowing 50 a month for expenses). Not being entitled to it wouldn't make a lot of sense given the job seekers benefit would be more than the rental income.
Or is it a case that the job seekers benefit would be reduced according to the amount of rental income received ?

And after the 9 month window of job seekers has elapsed, will half of the rental income from the house be more or less tax free cos it would be my wife's only source of income ?

Perhaps i am really over-confusing this ?!!

Cheers.

maringo

Jobseeker's Benefit won't be affected by getting rental income. The income would have tax implications. But once the 9 months ends she would be means tested for any social welfare payment.

blast06

Thanks Maringo.
A quick follow-up for you if possible !.... after the job seekers benefit period has elapsed and my wife has no income (she will be entitled to any job seekers allowance based on me earning), can half the rental income be considered her income (house is in joint names) and thus have next to no tax liability cos over a year it would only amount to 3-4K ....... meaning tax on the rental income would only be based on the relevant rate for my half (3-4K - miuns expenses) ?

Cheers.

dearg lady

If your wife is going to be out of work you would be better to opt for joint assessment to cut down on your tax bill