Airbnb room rental

siobhan1983

I’ve been renting out my spare room on Airbnb for the last year. I was naive and thought I was covered under the rent a room relief but I have just discovered that I am not and now in a blind panic. I earned €380 from it in 2017 and haven’t declared it. Have earned a bit more this year but now I’m sick with worry over the tax implications of it. Has anyone any advice for me?

tmh106

Given the amount involved (€380) I wouldn't be sick with worry over it. And as it was from 2017 I'd believe you still have until Oct 2018 to pay the tax - though hopefully someone who is more expert on tax than I can comment on whether tax for 2017 Air BnB rental is due in 2018 (as I believe) or in 2017. Assuming I'm correct, your 2018 rental income will not be due until Oct 2019.

relax carry on

siobhan1983 wrote: »

I’ve been renting out my spare room on Airbnb for the last year. I was naive and thought I was covered under the rent a room relief but I have just discovered that I am not and now in a blind panic. I earned €380 from it in 2017 and haven’t declared it. Have earned a bit more this year but now I’m sick with worry over the tax implications of it. Has anyone any advice for me?

How are you arriving at the 380 figure for 2017? If that's your taxable profit you just use a form 12 tax return for 2017 to declare it online. Login to your Revenue My account and fill in the form 12.

https://www.ros.ie/myaccount-web/home.html

siobhan1983

relax carry on wrote: »

How are you arriving at the 380 figure for 2017? If that's your taxable profit you just use a form 12 tax return for 2017 to declare it online. Login to your Revenue My account and fill in the form 12.

https://www.ros.ie/myaccount-web/home.html

Sorry I just calculated the amount of money I received from bookings. I’ll send in for 2107. It’s just this year I am worried about as I didn’t realize I had to pay tax on it and will now face a hefty bill on my earnings at the end of the year. I have actually taken my listing down now this morning. Financially I don’t think it’s worth the effort if it is to be taxed that much

dennyk

As long as your net non-PAYE income is less than €5000 per year, you can just file a Form 12 and list your AirBnB income under "Other Income". You don't have to pay preliminary taxes on Form 12 income, so you're still fine for your 2017 income, just file your 2017 Form 12 now and you're still well before the deadline. With so little tax owed (for 2017 at least), they likely won't even ask you for payment, they'll just lower your future PAYE tax credits for the next tax year by the appropriate amount and collect it from you that way.

siobhan1983

dennyk wrote: »

As long as your net non-PAYE income is less than €5000 per year, you can just file a Form 12 and list your AirBnB income under "Other Income". You don't have to pay preliminary taxes on Form 12 income, so you're still fine for your 2017 income, just file your 2017 Form 12 now and you're still well before the deadline. With so little tax owed (for 2017 at least), they likely won't even ask you for payment, they'll just lower your future PAYE tax credits for the next tax year by the appropriate amount and collect it from you that way.

Thank you very much for that advice. Do I wait until next year then for this years? I’m trying to decide whether to keep doing it or stop as it won’t be worth it. Charging €50 a night for the room and having to pay half of it in tax doesn’t make it too worthwhile for me

dennyk

Yep, for your 2018 income you'd just file before October 31st 2019.

The tax is something you'd have to account for when deciding whether AirBnB is worth it or what price to charge for your room, for sure.