Should I be paying tax on money my partner gives me?

Bumbler

Would appreciate any assistance please.

My partner who lives with me 90% of the time contributes towards running of the household. They are self employed and have being paying my mortgage, electric etc. As soon as the funds are transferred, from their account into my account, I pay the bills.

I too am self employed however my business is going down the tubes and not generating enough income. My partner has suggested that I re-skill but stay self-employed in case I get any work in. I will not be claiming benefits.

A civil servant has informed us that I will have to pay tax on what ever money my partner gives me as we are not married. Surely this is incorrect is as my partner is already paying income tax on the money he receives in so why should I pay tax again on the same sum of money.

silent_spark

All gifts are taxable, unless they're under set limits.

In your case, if it's a small one off, it might be considered a gift and be tax free (somewhere around the €3,000 mark per year for non-relatives, I'm not sure). Other than that... it could possibly come under the rent a room scheme, if it's under €12,000 over the year? This is tax free, but needs to be declared to Revenue. Also good to check that if they're living at 'your' address most of the time it could be considered their home, and they may have a claim on the property if the relationship breaks down, depending on how long you have been together. Worth checking out. Also, don't rely on my word for any of this.

Mrs OBumble

Is your partner giving you money or simply paying a share of the bills?


Theres a huge inequity here: you are treated as a married couple from a welfare perspective, but as single individuals for tax purposes.

And theres the question of how you value household labour, which the under employed person usually does more of.

Bumbler

Thanks folks. The money I receive to run the house is relatively consistent i.e. weekly or monthly. There is very little left over once bills are paid; maybe €50 max. All money goes towards bills. We have been in a relationship almost twenty years but never tied the knot both have our own property.

I hear you Spark re claim on property. This had crossed my mind.

silent_spark

Really? How come it doesn't fall under the scheme? Their partner is effectively renting a shared room from the OP. Is there an exclusion on renting to partners? Can you post a link? (Genuinely asking).

Edit: Nevermind, vandriver deleted their post. Maybe someone else can confirm either way?

exaisle

You are effectively cohabiting.

I've never heard of a cohabiting partner being assessed for contributions to a household....has anybody else?