Disability Allowance question?

Dude240502

I'm on Disability Allowance, I read that you can earn up to E480 a month and still claim full benefit, would I be allowed to rent out a room in my house if the rent was less than E480? Does it matter if the income doesn't come from actual paid employment, does anyone know?

splinter65

Dude240502 wrote: »

I'm on Disability Allowance, I read that you can earn up to E480 a month and still claim full benefit, would I be allowed to rent out a room in my house if the rent was less than E480? Does it matter if the income doesn't come from actual paid employment, does anyone know?

If you rent a room in your house and charge €480 per month then your DA will be reduced by €105 per week.
You can earn €120 per week from employment without your DA being deducted but it will be reduced pro rata after that.

Dude240502

Is income from rent different to income from employment, where does it give the rates at which your Disability Allowance is reduce for renting a room?

splinter65

Dude240502 wrote: »

Is income from rent different to income from employment, where does it give the rates at which your Disability Allowance is reduce for renting a room?

e) Property partly occupied by the claimant.

Any cash income from letting out a portion of a house that is not personally used or enjoyed is assessable against the claimant as income. For example, a room might be rented on a seasonal basis to students, ‘Air B n B’ customers, or for use as a business office.

If a portion of the house is being let or is being used for business purposes the following deductions from profits can apply to establish the net income for inclusion in the means assessment. Deductions from profits should be allowed in respect of ground rent and mortgage interest (not the full amount of the loan repayment) in proportion to the area used for business purposes. If rooms are let furnished, 5% of the gross amount received is allowed for wear and tear and 15% of the gross receipts may be allowed for voids (i.e. periods when the accommodation is vacant between lettings).

Dude240502

splinter65 wrote: »

e) Property partly occupied by the claimant.

Any cash income from letting out a portion of a house that is not personally used or enjoyed is assessable against the claimant as income. For example, a room might be rented on a seasonal basis to students, ‘Air B n B’ customers, or for use as a business office.

If a portion of the house is being let or is being used for business purposes the following deductions from profits can apply to establish the net income for inclusion in the means assessment. Deductions from profits should be allowed in respect of ground rent and mortgage interest (not the full amount of the loan repayment) in proportion to the area used for business purposes. If rooms are let furnished, 5% of the gross amount received is allowed for wear and tear and 15% of the gross receipts may be allowed for voids (i.e. periods when the accommodation is vacant between lettings).

Where does it say that and what if I wanted to rent out a room full time not for business purposes?

splinter65

Dude240502 wrote: »

Where does it say that and what if I wanted to rent out a room full time not for business purposes?

http://www.welfare.ie/en/Pages/Means-Assessment.aspx#sect2

My best advice to you is that you ring 1890 82 7770 tomorrow and tell them that you are thinking about letting a room in your home and you want to know how it will affect your payment.
Don’t forget, it doesn’t matter if it affects your payment or not, you are obliged by law to notify them if a paying guest (or anyone) moves into your home because it’s classed as a MAJOR CHANGE IN CIRCUMSTANCES.

Dude240502

splinter65 wrote: »

If you rent a room in your house and charge €480 per month then your DA will be reduced by €105 per week.
You can earn €120 per week from employment without your DA being deducted but it will be reduced pro rata after that.

Where are you getting E105 a week, I was told it was euro for euro, does anyone else know?

Cherry Blossom

I cant find where i read it now but i thought it was euro for euro as well €480 x 12 / 52 is approx €110 per week.

splinter65

Cherry Blossom wrote: »

I cant find where i read it now but i thought it was euro for euro as well €480 x 12 / 52 is approx €110 per week.

You can deduct 5% for wear and tear on the room. 5% of €110 is €5.50.
So €105 or thereabouts.
€203-
€105=
€98 DA

splinter65

Dude240502 wrote: »

Where are you getting E105 a week, I was told it was euro for euro, does anyone else know?

What you’re looking for is someone to tell you that you can let the room keep the rent and all your DA.
That’s what we call “wrong answer syndrome” as in, you keep getting the answer you don’t want so you keep asking the same question in the hope that someone gives you the answer you want to hear.

Dude240502

splinter65 wrote: »

What you’re looking for is someone to tell you that you can let the room keep the rent and all your DA.
That’s what we call “wrong answer syndrome” as in, you keep getting the answer you don’t want so you keep asking the same question in the hope that someone gives you the answer you want to hear.

No I really was just wondering because I couldn't find the information anywhere on the website, does that mean that if the rent was E350
350 x 12/52= 81, 5% of 81 is 4.05
81-4.05 is about 77
so 203-77= 126, so I would be allowed to keep E126 a week, is this right and could anyone else confirm that he is correct above about the way this is calculated?

Dude240502

Can anyone help?

Caranica

Dude240502 wrote: »

Can anyone help?

Give citizen's information a call