Rent Relief calculation

I_Love_Tomatoes

I've gorra question:

I rented a room in my house out to two tenants for 9 months. Price of room was 480 per month.

This means that their total rent was 4320, or, divided by two, giving 2160 per person.

They would now like to claim rent relief.

I have read this: http://www.citizensinformation.ie/categories/housing/renting-a-home/tax_relief_for_tenants

My reading of this tells me that they should both be entitled to €2000x20%= €400, as they have both spent over the €2000 allowance.

Am I talking shtye here or is that correct?

Or do they need to spend something like €3500 per person on rent in a year before they can claim?? I thought I saw that written somewhere before but I might be waffling... I just don't want them to end up with nothing (they are couple). If it is more prudent to put down just one name on the Rent Form, and make sure that they get at least one €400 refund, then I'd like to know before I fill the form in...!

Anyway, if someone knows the answer, that would be great.

Tazzle

It doesn't really concern you. They get this money back through their tax credits at their place of employment. Basically, as they have paid more than 2000 euro in rent, they can earn an extra 2000 euro before being taxed. Which equates to getting 400 euro back, if they have paid that much tax.

Are you under the impression somehow that you have to give them the money?

I_Love_Tomatoes

I see how it works now... thanks

Tazzle wrote: »

Are you under the impression somehow that you have to give them the money?

No. I just felt like giving them a hand to get the most back possible as they have minimum wage jobs and need to watch their pennies. (Goodwill gesture and all that... if you know what I'm getting at). If they can both legitimately get €400 back then I would like both of them to get €400 back... as opposed to say, just one of them getting it back.

Indeed it does concern me, as I want to make sure that the numbers are the same on
1. their Rent Relief form as both my PPS No and name must appear on it
and
2. Page 5 of my Form 12 for 2008....

I may as well get it right the first time rather than invite questions from the revenue... whenever they get around to audits on tax-evading landlords, of which I know many.

eden_my_ass

I wouldn't worry overly about the figures matching to be fair, I'm in the same situation as you, but have had a higher turnover of temporary tenants in the last year or two....I can gaurantee what I submit won't match the sum of what is claimed by tenants since either some won't bother while others will just guess a figure. I "think" under the rent a room scheme the Revenue just want to see that some reporting is going on, I'd imagine this isn't where they expect to clean up on lost revenue!

Mr. Incognito

If they are married and jointly assessed, both working and have enough PAYE paid they will both get the credit.

In addition Revenue run these things through like rain as the amount (400) is small and it doesn't pay to go chasing them. Forms without landlords PPS numbers are run through no problem.

Although they are trying to computerise eveything atm

I_Love_Tomatoes

Good to know - thanks for all that info.

I suppose 400 is peanuts in the grand scheme of things.... and I have never come close to the 10k allowance in the last two years I was renting...

Tazzle

Also, if they're working minimum wage jobs, as you say, they won't be taxed anyway, and so not entitled to any relief.

I_Love_Tomatoes

Gotcha. thanks for that....

peustace

Hi guys,
Sorry to hijack this thread now but I have a quick question I couldnt find an answer to anywhere else.

About two years ago I was on placement from college and lived in Galway renting a room in a house. I was earning money and so paying Prsi.

Am I entitled to claim Rent Relief on this? Or has it gone to far past the date/I was on placement?
Thanks for any info.

shoegirl

If they are not a married couple they should put in separate forms, they will get the correct amount. Its a pittance anyway compared to what mortgage relief is worth, but I guess better than nothing.

gratusa

Hi,

I'm in the process of claiming this back through revenuerefunds.ie

Basically if you are paying rent you are entitled to 400 if you are single and double that if you are married. It doesn't matter if you rent for a week or the whole year.

If your landlord rents rooms out in their private home then up to 10k they don't have to declare to the revenue. anything above this and they do.

It's the same if you were living at home with your parents! Where loads of us will be considering the house situation!

Anyway I'm claiming mine back for the last few years - woohoo and it's only costing 50 quid, no headaches

calex71

dont forget folks this can be claimed for the 2 or 3 years previous , they'll send you a nice cheque for that and then tax credits going forward.