Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Rent-a-room tax

  • 24-11-2013 11:03am
    #1
    Registered Users, Registered Users 2 Posts: 665 ✭✭✭


    I know the income from a rented room is tax free under 10k but does USC and prsi apply to the income?


Comments

  • Moderators, Society & Culture Moderators Posts: 32,286 Mod ✭✭✭✭The_Conductor


    sohappy wrote: »
    I know the income from a rented room is tax free under 10k but does USC and prsi apply to the income?

    Providing your gross income (aka absolutely every penny that changes hands- including billshares for utilities etc) is less than 10k- then the total income is exempt from income tax, PRSI, the health levy and the income levy, or the universal social charge.

    Go one penny over the 10k- and all the above apply to *all* the income- not just that portion over 10k.

    Note- you still have to declare the income in an annual tax return.


  • Registered Users, Registered Users 2 Posts: 8,429 ✭✭✭wirelessdude01


    Note- you still have to declare the income in an annual tax return.

    Never knew this. Have been renting rooms for the past 6 years, Ooops. Could this result in a fine?


  • Moderators, Society & Culture Moderators Posts: 32,286 Mod ✭✭✭✭The_Conductor


    Never knew this. Have been renting rooms for the past 6 years, Ooops. Could this result in a fine?

    In theory they could issue you with a fine.
    In practice- it never ever happens.
    You haven't incurred taxable income- so its a revenue neutral exercise from Revenue's perspective. They have far bigger fish to fry than someone who mistakenly hasn't declared rent-a-room income under the threshold.

    Just make sure you declare it going forwards- its better to have it all accurate and above board.

    You can make a retrospective amendment to tax returns for the previous 3 years- however I suspect even Revenue would advise you not to bother.

    If you're worried at all- give them a ring- they're actually surprisingly nice and helpful on the phone (I'm not being sarcastic- they are some of the easiest to deal with and most helpful people I've ever communicated with over the phone.........)


Advertisement