Accommodation Recognition Payment (ARP) - how to remediate initial arrangement

Birdland

I know someone who has rented their house to two Ukranian families. It was initially suggested by the tenants that the landlord gets €800 ARP plus a further €600 cash in hand (they were very happy to pay the going rate for a house). The landlords situation has changed and is now concerned about SW finding out about this cash income - they now want to create an above board proper rental arrangement. So the question is can they have an arrangement where one family is paying ARP for 2 x rooms and the other family pays rent of €600 for another two rooms?

https://www.boards.ie/discussion/2058373407/accommodation-recognition-payment-arp-how-to-remediate-initial-arrangement

Yes they can. If the owner is not living in the house , he will be liable for tax on the 600 as a landlord.

Marcusm

https://www.boards.ie/discussion/2058373407/accommodation-recognition-payment-arp-how-to-remediate-initial-arrangement

The first thing he will need to do is to return the ARP to the department as he is not entitled to it if he receives anything from the occupier other than a contribution towards utilities and costs - the €600 would be well in excess of any reasonable contribution. If he was aware that he would be accepting €600 in addition to the ARP then the application was fraudulent. It’s highly unlikely that he would be prosecuted for fraud but, in a functioning society, that would be more of an issue than the taxation point.