Rent-a-room relief Question

olearydc

Hi

We have a Family house and want to work with the Rent-a-room scheme

We had a large room (which was our garage about 15 years ago, attached to our house)...we recently knocked this room through to our utility room to make a larger room

With the larger room, We then created a bedroom study area, a separate shower room and a small kitchen area - neat and tidy
We made it in such a way that they have privacy if they need it - -its part of our house


Looking online I saw this
https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/what-type-of-residence-qualifies.aspx

Self-contained unit
The rented room or rooms can be a self-contained unit within the house, such as a basement flat or a converted garage. If this unit is not attached to the property it cannot qualify for the relief.

It is attached to our house so revenue says its all good

But looking at this

https://www.citizensinformation.ie/en/housing/renting_a_home/sharing_accommodation_with_your_landlord.html

citizensinformation is saying

Self-contained flat or apartment
If you are renting a self-contained flat or apartment in your landlord’s home, your tenancy is covered by the Residential Tenancies Act 2004 and the Residential Tenancies (Amendment) Act 2015. You have certain rights and obligations under this legislation and so does your landlord.

If the flat or apartment was originally part of the main house, your landlord must register the tenancyunder the Residential Tenancies Act 2004. However, the landlord can choose to opt out of the provisions on security of tenure, which are in Part 4 of the Act. This option is available under Section 25 of the Act. You must get notice in writing, before the start of the tenancy, if the landlord wishes to take this option.

So it looks like we cant do the rent a room scheme

Wondering if other people have a better idea on this or am I missing something
Question being, having a small self contained unit within the house, is this allowable?

Thanks again

HBC08

I didn't rent a room thing 2 years ago and it's a great idea
I don't know the answer but I would just let it out and do the scheme,who is going to check, I'd just fire ahead.

davindub

The two legislations are unrelated to each other. But ask for professional advice/ revenue themselves, you will frequently get the wrong answer online.

goldenhoarde

Is there a separate entrance to this from outside? And can you enter main house from it?

Also I'd be inclined to favour revenue as they will be after you for money if there was any issues.

Ring them and see what they say and take it from there?

olearydc

goldenhoarde wrote: »

Is there a separate entrance to this from outside? And can you enter main house from it?

Also I'd be inclined to favour revenue as they will be after you for money if there was any issues.

Ring them and see what they say and take it from there?

Thanks. There is no separate entrance from outside, just a door from inside the porch. Basically a large room on the ground floor which has been split up into sections

Mrs OBumble

The rent a room scheme cover your tax obligations. Effectively you can get up to 14k per year, inclusive of bills, and it's tax-free under "rent a room".

The information on Citizen's Information about tenancy obligations is separate. I think that the separate door question is critical: the room is inside your home, so you would have a license not a tenant.

filbert the fox

HBC08 wrote: »

I didn't rent a room thing 2 years ago and it's a great idea
I don't know the answer but I would just let it out and do the scheme,who is going to check, I'd just fire ahead.

OP is looking for advice having done lots of research. The likes of this confusing and reckless comment has no place in the debate. What you're suggesting is that it doesn't matter whether it's legal within the Rent a Room scheme or not as nobody's going to check. I believe we have a tax collection system which gets results and as you are required to make a return to Revenue under the scheme then you are subject to possible audit. Perhaps you might review your opening sentence as it make no sense.

My opinion is that the house, if owned and occupied by the OP, is suitable and complies with the terms of the Rent a Room scheme

HBC08

filbert the fox wrote: »

OP is looking for advice having done lots of research. The likes of this confusing and reckless comment has no place in the debate. What you're suggesting is that it doesn't matter whether it's legal within the Rent a Room scheme or not as nobody's going to check. I believe we have a tax collection system which gets results and as you are required to make a return to Revenue under the scheme then you are subject to possible audit. Perhaps you might review your opening sentence as it make no sense.

My opinion is that the house, if owned and occupied by the OP, is suitable and complies with the terms of the Rent a Room scheme

My most sincere and humble apologies,there was indeed a typo as I typed didnt instead of did.

I rented out a room in my house for 6 months in 2017. My point to the op was certainly not meant to advise them to dodge Revenue,that wouldnt be clever.I was making the point that if they go ahead with the scheme , are under the threshold and declare everything that will be sufficient imo.I dont see somebody from Revenue or anywhere else calling to their house to see if theres an external door or not.

dory

I looked into this a few years ago. They said it all came down to entrances. As you've said that they will enter your main front door, you can do the Rent a Room scheme. If the unit had its own entrance you couldn't.

4ensic15

The revenue will accept the Rent a Room scheme in a basement flat with its own entrance. that is the tax position. The fact that the Revenue accepts it for rent a room does not meant that the Residential tenancies Act does not apply. As far as the RTB are concerned it is a self contained unit and not a dwellimng in which the landlord resides and is therefore subject to the RTB. The landlord can avail of Section 25 of the RTA.

Section 25.—(1) This Part does not apply to a tenancy of a dwelling where the conditions specified in subsection (2) are satisfied if the landlord of the dwelling opts, in accordance with subsection (3), for this Part not to apply to it.

(2) Those conditions are—

(a) the dwelling concerned is one of 2 dwellings within a building,

(b) that building, as originally constructed, comprised a single dwelling, and

(c) the landlord resides in the other dwelling.

All that does is change the notice requirements.

The danger with being under the RTA/B is that you have to go through the full hoops to get the tenant out, even if the income is tax-free.

olearydc

4ensic15 wrote: »

The danger with being under the RTA/B is that you have to go through the full hoops to get the tenant out, even if the income is tax-free.

I agree

This was our main thought, wanted a licensee and not a tenant when it came to the rent a room scheme.

We have only one front door (which I never thought about, so some great advice here--thanks).

Did not want the hassle of contracts just in case, it being our home -- thanks again