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Rent a room scheme - Question

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  • 08-12-2007 2:59pm
    #1
    ooter
    Registered Users Posts: 3,194 ✭✭✭


    what way does this work?
    i was always under the impression that if you went over the annual allowance you then had to pay tax on the entire amount but i was speaking to someone during the week and they said if you go over the allowance you only pay tax on the rent collected after the allowance.
    could somebody clear that up please?
    thanks


Comments

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    #2
    SarahMc
    Closed Accounts Posts: 517 ✭✭✭SarahMc


    You are right, you pay tax on the whole amount. Allowance went up in the budget though.


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    #3
    ooter
    Registered Users Posts: 3,194 ✭✭✭ooter


    thanks Sarah.
    yeah,i seen that it went up in the Budget allright......


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    #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Ooter- the other thing to be aware of is that its total income that is counted- that is rent+ any contributions towards billshares of any nature. So- if you have a joint food kitty and share the ESB, Gas, NTL/Chorus, Internet, Contents insurance, TV licence etc- the whole lot is counted- not just the rental income for the room. The "tenant" is also allowed to claim rent relief- and could potentially be asked to prove the amount they claim (which they can do retrospectively after they have left the house) so there is no point in only declaring part of the income.

    S.


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