Extra tax for "land lords"

loch ness

MODS: Please feel free to move this if I have posted on the wrong place.

I own a house and my brother who is unemployed is moving in.
He doesn't have rent allowance on his old accomadation but is hoping he will get it for the room in my house.
The rent wouldn't be much, just enough to cover bills etc, maybe 50 per week.
My question is, will I get taxed extra then on account of being a land lord?

Thanks for reading.

Ste.phen

Look up the "rent a room" scheme, it allows you to earn rental income tax free if it's below a certain amount (which i believe 50 a week would be WELL below) and if you continue to live in the house

BC

It depends on whether you are living in the accomodation or not.

If its your PPR then as Iggy says, you can sort it out under the rent a room scheme. I'm fairly sure that 10,000 is the max rent per year allowed under this but check it out.

If its not your PPR then you are a landlord and should be paying the relevant tax.

Edited to say - I read your post properly. Is your brother actually paying you rent?

loch ness

Yes I live in the house.
My brother hasn't moved in yet but will be by the end of the week.
I will look into this rent a room scheme, thanks for your replies.

MysticalSoul

Under the rent a room scheme, you would be taxed, as from memory you are not entitled to avail of the scheme by renting a room out to family members.

snubbleste

I'm pretty sure a rule was brought in where rent supplement might not be granted if the tenant has a relationship to the landlord.

The_Conductor

The Rent-a-Room scheme does not apply to direct family members (Mother/Father/Son/Daughter/Brother/Sister). Similarly he/she is not entitled to Rent-Relief, and may possibly (they will need to check this) not be entitled to rent-allowance (they would have other allowances- such as job seekers allowance, unemployment benefit etc).

It might be worthwhile posting your question in the state benefits forum here

Victor

Have him talk to the community welfare officer and ask if he can get some contribution towards rent.

Mrs OBumble

What kind of b*&%^&^& charges his unemployed brother rent for a room that would otherwise be vacant, anyway?

OTOH, perhaps he could be buying the groceries for you, or paying some bills, that just happen to come to the same value as the "rent" he would otherwise be paying. If you get my drift.

NB don't try this with non-relatives: if you're a landlord and let rooms at less than market value, then there is a tax liability for the difference as well.

Supercell

Bit strong there Mary, I think the OP just wants to cover any extra costs her brother is going to cost her.
TBh, if she didnt charge him anything he'd probably just treat it like living at home with the mammy and he'd never leave!
€50 is far far below what he'd pay if he had to rent a place for real.

shoegirl

snubbleste wrote: »

I'm pretty sure a rule was brought in where rent supplement might not be granted if the tenant has a relationship to the landlord.

Correct.

Victor

JustMary wrote: »

What kind of b*&%^&^& charges his unemployed brother rent for a room that would otherwise be vacant, anyway?

What of the brother's self esteem? Should the brother feel like he is free-loading off the original poster?

NB don't try this with non-relatives: if you're a landlord and let rooms at less than market value, then there is a tax liability for the difference as well.

No, I don't think so. Sure if he gave the third party the hosue, there might be a CAT issue, but with a reduced rent there shouldn't be a problem.

Kipperhell

The way I read this is not so he can charge his brother rent it is so he can say he will in order to get the eastern health board to give him money.

They will not pay for a family member and I think rightly so not because some people couldn't do with the help but it is open to too much abuse.