Rent a room scheme tax question

drummer20

Hi,

I know the limit I can earn from my house tax free is €10,000 a year
but does anyone know if after this amount tax will be applied to
all the income from the house or just the portion over 10k?

I wont have anything to worry about this year as I've no rooms rented yet,
but for next year I am wondering would it be best to lower room rates to fit the amount if all of the money will be taxed if it goes over the 10k.

I haven't really done the sums yet but I've three rooms I'd consider renting and could easily go over this limit, but don't want to worry too much about the tax calculations just yet if it will only apply to anything over the 10k.

Heisenberg1

drummer20 wrote: »

Hi,

I know the limit I can earn from my house tax free is €10,000 a year
but does anyone know if after this amount tax will be applied to
all the income from the house or just the portion over 10k?

I wont have anything to worry about this year as I've no rooms rented yet,
but for next year I am wondering would it be best to lower room rates to fit the amount if all of the money will be taxed if it goes over the 10k.

I haven't really done the sums yet but I've three rooms I'd consider renting and could easily go over this limit, but don't want to worry too much about the tax calculations just yet if it will only apply to anything over the 10k.

yes you would be taxed on the whole amount not on the diffrence over 10k

if you sold your house you would have to pay capital gains tax@20%

beeno67

luzon wrote: »

yes you would be taxed on the whole amount not on the diffrence over 10k

if you sold your house you would have to pay capital gains [EMAIL="tax@20%"]tax@20%[/EMAIL]

Capital gains tax at 22%. Went up in budget.

drummer20

Thanks luzon,

Guess I'll have to stay under the 10k so,
or go way over for it to be worthwhile, probably not worth the hassle though.

was hoping i wouldn't need to do any calculations!

jdivision

It's his principle private residence presumably given he's letting out rooms under the rent a room scheme so no capital gains tax applies

drummer20

Its her principal private residence actually!

and seeing as I do live there I don't plan on
selling it any time soon either.

Just hoping to make some extra money for paying bills,
my income after loans, bills, taxes is ~60 a week,
could do with a bit extra!

athtrasna

Be warned that the 10k figure applies to all monies received including contributions to bills :eek:

Terri26

athtrasna wrote: »

Be warned that the 10k figure applies to all monies received including contributions to bills :eek:

just wondering as a tenant do i put in the price of bills plus rent when I am filling out the for. isnt it the same amount you gte back regardless of how much rent is???????/

ZYX

jdivision wrote: »

It's his principle private residence presumably given he's letting out rooms under the rent a room scheme so no capital gains tax applies

And that's even if rent is over €10,000?

Heisenberg1

beeno67 wrote: »

Capital gains tax at 22%. Went up in budget.

bloody rats what gidnt go up!!

The_Conductor

ZYX wrote: »

And that's even if rent is over €10,000?

The property continues to be his/her PPR- even if they go over the 10k limit (which includes all bills and bill shares too). There are no CGT implications- unless they rent the whole property out. It has come up in here a few times previously.

Terri26- what form are you referring to filling out as a tenant? Rent relief? In which case its the 'rent' you paid- not the gross amount paid- which includes bills. Technically you are not a tenant- you are living with the person under licence in their PPR. Originally people renting a room under the rent-a-room scheme did not qualify for rent-relief, but this was relaxed later. The relief is very minimal, I don't remember the exact figures but I think its between 200 and 300 per annum.

S.