renting a room out

yourdeadwright

Just a quick one, I have an elderly relative that is thinking about renting a room out in her house as she is living alone and the money and the company could do her good,
My question is do you have to pay tax if you rent a room out  ?
If so is there anywhere I could get her the information ?


Thanks

Michael D Not Higgins

With the Rent-a-Room scheme, you can earn up to €14,000 per annum tax free. Note that once the income goes above 14k, the entire amount is taxable. Also a yearly tax return must be completed to state the income earned.

yourdeadwright

Michael D Not Higgins wrote: »

With the Rent-a-Room scheme, you can earn up to €14,000 per annum tax free. Note that once the income goes above 14k, the entire amount is taxable. Also a yearly tax return must be completed to state the income earned.

Thanks
Just so i have this correct even though she will not be taxed , she still must do a tax return at the end of the year to show its been rented ?

Michael D Not Higgins

yourdeadwright wrote: »

Thanks
Just so i have this correct even though she will not be taxed , she still must do a tax return at the end of the year to show its been rented ?

Yes. I believe this must be done through the online system by filling out the relevant form 11 or form 12 (depending on self assessed or PAYE). It might be worth having someone set that up if they're elderly and not good with computers.