Rent-a-Room technicality question

SwordofLight

I'm just wondering about the scheme as thinking of getting a lodger in for the student term.

My question is: if I allow the lodger to have their own entrance and lock up/ block off their accomm from the main house (granny flat type situation), does it still qualify at R-a-R, or is that then rental income as a separate unit? What's to stop someone letting rooms in their home under the R-a-R scheme, for 14k tax free, and then letting another room or granny flat as a rental unit - i.e. having the 14k tax free and then the granny flat at 20% tax.

Victor

Blocking up is problematic. That is subdividing, which needs planning permission.

You need to read the rules on Rent-a-Room and planning permission for subdividing a property.

The granny flat flat attract tax at your highest rate, not necessarily 20%. You need to consider if PRSI and USC will apply.

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.

I read that as meaning it can be blocked off fom the main house and have its own entrance, but must be part of the house (eg not a granny flat or separate building down the end of the garden).