Jobseekers Allowance & Rent A Room Allowance.

Irish_peppa

Hi there, Im moving from jobseekers Benefit to Jobseekers Allowance (means tested) in a few weeks. I rent out bedrooms rooms in my own home with the Rent a Room Scheme. Is there some way to calculate roughly what I would be entitled to get on the Allowance when the Rent a Room scheme income is taken into consideration? I dont need exact figures just a very rough indication. Between rent and bills I take in 450 per room per month. Currently two rooms rented out. Have a third room empty. Im wondering is it even worth renting the rooms out anymore

wifey28

from the citizens info site, income from rented rooms is taken into account for the means test.

It looks like they take the entirety as income, so if your entitled to 203 a week, theyll assess that you already have (900 * 12 / 52) 207 euro a week income so you may not be entitled to anything at all.

splinter65

As you have €900 per month income then you don’t need any further assistance.
Up the rent to €500 and rent out the third room until you find a job.

Caranica

splinter65 wrote: »

As you have €900 per month income then you don’t need any further assistance.
Up the rent to €500 and rent out the third room until you find a job.

Renting out the third room will put them over the 14k threshold for the year meaning the rent is taxable in its entirety.

splinter65

Caranica wrote: »

Renting out the third room will put them over the 14k threshold for the year meaning the rent is taxable in its entirety.

Oh that’s a good point caranica I didn’t think of that to be honest.

Irish_peppa

splinter65 wrote: »

As you have €900 per month income then you don’t need any further assistance.
Up the rent to €500 and rent out the third room until you find a job.

Hi sorry just seeing this now.
Yes thats why i cant rent third room as it goes over the 14K rent a room threshhold at the moment I get 370 from Government per week. If i continue to rent out my two rooms I will end up with an income of Euro 225 per week from lodgers. Thats why i am wondering is it actually worth renting the rooms to loose out 580 Euro per month after the means test. That will be tight with a kid and partner that doesnt work. Yikes
My choices should it come to it
A) keep both Lodgers for 900 Per month
Ask lodgers to leave and get full Government Jobseekers Allowance 1480 per month
I am currently job hunting so HOPEFULLY i get working before my JSB runs out fingers and toes crossed

splinter65

Irish_peppa wrote: »

Hi sorry just seeing this now.
Yes thats why i cant rent third room as it goes over the 14K rent a room threshhold at the moment I get 370 from Government per week. If i continue to rent out my two rooms I will end up with an income of Euro 225 per week from lodgers. Thats why i am wondering is it actually worth renting the rooms to loose out 580 Euro per month after the means test. That will be tight with a kid and partner that doesnt work. Yikes
My choices should it come to it
A) keep both Lodgers for 900 Per month
Ask lodgers to leave and get full Government Jobseekers Allowance 1480 per month
I am currently job hunting so HOPEFULLY i get working before my JSB runs out fingers and toes crossed

You never mentioned in the OP that you were claiming for a partner and child. I calculate your monthly JSA to be €1607. In that case if you keep renting the 2 rooms then your JSA would be €164 per week.

Irish_peppa

Thanks Splinter65, sorry i neglected to mention that my bad, So basically the government will normally make up the difference to your weekly minimum entitlements depending on what you bring in, but once you go over that your on your own makes sense.
You explain it better then citizens information website ! Maybe they deliberately complicate it to confuse people.
They really should have a calculator app that you can input these social welfare calculations to get answers, it wouldnt be that hard to setup.
Thanks for input Splinter:) now to finding a job:eek:

N2017

What if you are paying the mortgage for your home and rent out a room under rent a room scheme. The rent only covers the mortgage payments, if a homeowner does not have any other income ( looses the job) and is looking for welfair allowance or supplement under means assessed system, how would it work out? Would he be entitled to anything for basic living expenses?

Also in relation to revenue- on their website they mention that you still need to declare income under rent a room scheme. Does it mean that F11 needs to be sent to revenue with 2 incomes listed : welfair allowance and rental income... is there a tax liability on it?

Thanks

Dempo1

https://www.boards.ie/discussion/comment/117778985#Comment_117778985

I'm open to correction but it's been my experience in the past, SW only look at income, whatever its for and make no allowance for outgoings, including mortgage. It's ironic in one sense that if a claimant is renting, they may be entitled to rent allowance, if a claimant has a mortgage, there is nothing.

I appreciate there are revenue, tax considerations, reliefs etc but my understanding from a SW and JSA perspective, JSA payment will be reduced dramatically to reflect income from rent regardless if it used to pay mortgage.

There's also the living with Partner aspect and this too will be taken into consideration on assessment. On a positive note, the OP having a dependent will increase the amount of JSA awarded.

Again, I'm only speaking from previous experience, I'm single have a mortgage and whilst I had no rental income, there was no considerations made for my outgoings including mortgage.

N2017

Thank you for a quick answer.

People with mortgages in this case may end up in difficult situation if they loose their job.

I suppose another option is to contact the bank and look for interest only repayment break to decrease the outgoings and try to survive on the money recieved from tenants till situation changes.

Dempo1

https://www.boards.ie/discussion/comment/117779012#Comment_117779012

Honestly I would not in anyway discourage you from making a claim for JSA when it arises, people make the mistake of not claiming regardless of amount awarded and it has consequences like not having contributions continuing etc.

My only concern and I'm no expert (just speaking from personal experience), mortgage holders are at a disadvantage as its just not considered from a means tests point of view, so the rental income albeit perfectly ligitimate and sensible may affect ultimate payment your awarded, other posters have made excellent calculations, I'd just say every persons circumstances is different and there's the living with partner aspect I wanted to mention. You also have a dependent and this is absolutely considered.

Seperately, I certainly would be advising contacting mortgage provider and examine an interest only option (do not do a payment break if possible or split mortgage) I've been that soldier 😉. Crucially however, keep in mind whatever you arrange, discuss with mortgage provider is of little concern to SW (I'm not being harsh, you just need to understand its not something they'll consider from a means test point of view)

So absolutely move to JSA even if payment is reduced, very important to stay in the system until you find employment.

N2017

https://www.boards.ie/discussion/comment/117779029#Comment_117779029

thanks for the support. will research the options )