Paying tax as a landlord?

Pauleeeeeeee

I've been renting a room in an apartment for the last year and a half.
This apartment is owned by a friend of mine. He's there about 50% of the time.

The arrangement up to this point has been that I pay him cash once a month and that I don't have any bills/letters etc. under my name coming to the address.

Now, as far as I'm aware he has been doing this so as to avoid any hassel from the revenue in relation to having a tenant.

It's a pretty nice apartment so I haven't minded the arrangements up until this point.

The problem now is that it looks like there's a good possibilty that I'll loose my job soon. So obviously, for rent allowance purposes and jobseekers allowance purposes, I'm going to need to prove that I'm living there.


So I suppose my question is, if I start getting bank statements sent to the apartment with my name on it, is there going to be any trouble for my friend? Anyway, I'm under the impression that the majority of property rented out wouldn't have the landlords bothering with any tax related issues.

Thanks for the help.

Arnold Layne

Pauleeeeeeee wrote: »

Anyway, I'm under the impression that the majority of property rented out wouldn't have the landlords bothering with any tax related issues.

You're wrong there. The majority of landlord's are registered with the PRTB, Private Residential Tenancies Board and are liable to pay tax if Revenue check it out. but I don't think that applies in your friend's case as he is renting you a room in his home.

In relation to your friend/landlord, if the rent he receives is less than €10000 he is exempt from paying tax but must fill out an annual tax return.

Here's a link: http://www.citizensinformation.ie/categories/housing/owning-a-home/home-owners/rent_a_room_scheme

Pauleeeeeeee

Thanks for the reply Arnold Layne.

I currently pay 500 a month to my friend/landlord. So it would be below the 10,000 mark that you specified.

It's a bit of an odd situation though, because he lives in my apartment 1/2 the time and then 1/2 the time in another apartment. They are both his home. The reasons he goes between the two of them are personal.

So here's what I plan on doing if I end up loosing my job;

Get a bank statement sent to me for proof of address
Get My friend/landlord to fill out the annual tax for Arnold Lane spoke about

As far as I'm aware, I have to have proof that I've been living at an address for 6 months or more if I am to qualify for rent relief.

If my friend/landlord is willing to write a letter confirming that I have been living there for the last year and a half would this suffice as evidence to the social welfare?

Thanks for the help!

Arnold Layne

Pauleeeeeeee wrote: »

If my friend/landlord is willing to write a letter confirming that I have been living there for the last year and a half would this suffice as evidence to the social welfare?

I think SW will accept the letter. It may be best for your friend to ring Revenue and explain that he didn't know about completing a tax return form for the previous year as the rent paid was under the amount and ask for advice. They are very helpful in these matters. This would help if Revenue decided to cross reference landlords with the Social Welfare Department.

Pauleeeeeeee

Thanks Arnold Layne, you've been really helpful.