RTB has contacted me

retropessir

Caranica wrote: »

The rent a room threshold is for income not profit! You receive this money, the fact that you pass it on is neither here nor there.

It would be different if you were the landlord's agent and simply collecting the rent but by taking in licensees in this way you are personally liable for tax compliance.

Thanks for clarifying. That was the part I was misinterpreting. Declaring and paying tax on what I keep (nothing) versus the total sum transferred to the landlord. I’ll just go to a tax advisor and give all the info and have them sort it for me. Cheers.

noodler

OP, do you pay and rent yourself or are you do all your licencees contribute the full month's rent and you just transfer to LL and pay nothing yourself?

retropessir

noodler wrote: »

OP, do you pay and rent yourself or are you do all your licencees contribute the full month's rent and you just transfer to LL and pay nothing yourself?

I am the only name on the lease for the house, I have my damage deposit on it. I am responsible for the entire months rent if no one is occupying here other than myself or if there are empty rooms (varies month to month). In that scenario I pay the difference on what I receive and the rent.

Normally though thee house has X number rooms and I divide the rent amongst the other rooms, less mine.

I pay have furnished (upgraded much of the existing furnishing) in the house.

terrydel

retropessir wrote: »

I’m here to enquire about my situation, as I was clearly ignorant on the ins and outs about this regarding the RTB, which then led to me realizing about the tax situation.

I am not going to sit here and say I knew about it when I did not. However someone posted about it, I tried to assess my situation from that standpoint and answered as such. I’m clearly not a tax advisor.

However on this entire thread you seem to be here to just rip everything I and others are posting to absolute shreds. Nitpicking and picking fights with myself and others. You can see your way out unless you have anything helpful to add rather than just trying to play Sherlock Holmes. Clearly you have your own personal turmoil going on, seeing as you are so defensive for absolutely no reason.

It's a discussion forum, discussion is two way in my view, if you post something people are entitled to respond and also to question it, as long as they are civil and respectful, which I absolutely have been.
I have not ripped anything posted by anyone to shreds and take great offence to that suggestion, read thru all of my posts here and they'll back me up, they are simply replies, opinions, and discussion of the issues raised. I've offended or been rude to nobody.
And then you seek to pass judgement on my state of mind? Who's the one being offensive now?
Imho your story doesn't add up, you've contradicted yourself a number of times and I've pointed that out, reply or don't, it doesn't bother me. But don't accuse me of ripping people to shreds when I've done nothing of the sort, thanks very much.
Some advice, your landlord is breaking the law, you are fully aware of this so if rtb question your situation at that house, tell the truth, you are a tenant there and he's the landlord.

terrydel

Graham wrote: »

Mod Note

Terrydell, quit the inquisitionstyle posts. Your posts are coming across as unnecessarily aggressive.

retropessir if you have an issue with a post, report it. Do not respond on thread.

They are not aggressive at all, I'm asking questions, it's a discussion forum, discussion is two way.

The_Conductor

terrydel wrote: »

They are not aggressive at all, I'm asking questions, it's a discussion forum, discussion is two way.

The OP asked a question.
If you're not in a position to assist him/her- please do not interrogate him/her.
Regardless of whether you are remaining civil, or not, interrogating someone is not a 'discussion'- its an interrogation. You are skating on thin ice.

terrydel

The_Conductor wrote: »

The OP asked a question.
If you're not in a position to assist him/her- please do not interrogate him/her.
Regardless of whether you are remaining civil, or not, interrogating someone is not a 'discussion'- its an interrogation. You are skating on thin ice.

I completely disagree with that assertion.

mrslancaster

Caranica wrote: »

The rent a room threshold is for income not profit! You receive this money, the fact that you pass it on is neither here nor there.

It would be different if you were the landlord's agent and simply collecting the rent but by taking in licensees in this way you are personally liable for tax compliance.

that's what I understood - the €14k is the max total amount received in a year and there's no allowances for any expenses whether that's payments to the owner or utility suppliers etc. but open to correction on this.

info here
https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/what-conditions-must-be-met.aspx

Also does OP have to inform the landlord about any other person living in the property? If they don't is that a breach of tenant obligations?

Graham

mrslancaster wrote: »

Also does OP have to inform the landlord about any other person living in the property?

It's stated in the opening post.

mrslancaster

Graham wrote: »

It's stated in the opening post.

missed that - just re-read OP

Marcusm

Caranica wrote: »

The rent a room threshold is for income not profit! You receive this money, the fact that you pass it on is neither here nor there.

It would be different if you were the landlord's agent and simply collecting the rent but by taking in licensees in this way you are personally liable for tax compliance.

This is all so wrong:

1. The rent a room relief applies to total receipts not just those constituting income. Ie all contributions to household bills, meals provided must be included.

2. If the OP was acting as the landlord’s agent they would be into a whole world of additional tax compliance responsibilities and not fewer as implied by your post.

3. The OP has no additional personal tax compliance responsibilities from this arrangement unless net profit is more than 5k (stated to be nil) or gross receipts were more than 30k (which seems unlikely from what has been described). Irrespective, these additional responsibilities could only be imposed by Revenue. They do not apply automatically.

Again, it is highly disappointing to see such poorly advised posts being thanked so effusively when they are baseless, a distraction from the point at issue and tantamount to bullying the OP (as they are so self evidently groundless).

Caranica

I used income to describe monies received ie incoming funds.

Of course the agent situation has further responsibilities but it is a formal role with more straightforward requirements.

Re your point 3, from Citizens Information "
You will not qualify for the relief if:
Your gross income from rent and related services is over €14,000. In this case, Revenue will treat your rental income minus allowable expenses as part of your total income for tax purposes and should be included in your tax return."

If the OP receives a cent over 14k they are not entitled to the rent a room relief but has tax liability on the full sum less allowable deductions.

Marcusm

Caranica wrote: »

I used income to describe monies received ie incoming funds.

Grand.

Caranica wrote: »

Of course the agent situation has further responsibilities but it is a formal role with more straightforward requirements.

Wrong; if you are in receipt of income in a representative capacity (including as an agent, trustee or otherwise), you have much more complex, not more straightforward requirements. Including a mandatory SEPARATE income tax filing.

Caranica wrote: »

Re your point 3, from Citizens Information "
You will not qualify for the relief if:
Your gross income from rent and related services is over €14,000. In this case, Revenue will treat your rental income minus allowable expenses as part of your total income for tax purposes and should be included in your tax return."

If the OP receives a cent over 14k they are not entitled to the rent a room relief but has tax liability on the full sum less allowable deductions.

Where the intermediate landlord does not make a profit, it would be moronic for him/her to seek to claim rent-a-room relief as they simply take on additionally reporting requirements. Reciting information which you obtain from Citizen's Info without understanding the wider context of tax rules is hardly a source for this and misleads the OP.

Again, I say this is an entire distraction from the questions which the OP has put. I continue to reply only to refute the misleading seafóid you continue to post.

Graham

Mod Note

folks, while general discussion around legalities and taxation are fine. No specific advice to be given to individuals.

As we cannot verify the credentials of posters, please link to authoritative sources for your information/interpretations.

As there are posts above that don't do either of these things, posts may be edited/removed.

davindub

Marcusm wrote: »

Wrong; if you are in receipt of income in a representative capacity (including as an agent, trustee or otherwise), you have much more complex, not more straightforward requirements. Including a mandatory SEPARATE income tax filing.

Where the intermediate landlord does not make a profit, it would be moronic for him/her to seek to claim rent-a-room relief as they simply take on additionally reporting requirements. Reciting information which you obtain from Citizen's Info without understanding the wider context of tax rules is hardly a source for this and misleads the OP.

Income outside of the threshold still needs to be declared, typically on form 12 (even if nil). Rent a room relief can also be claimed on form 12.

I cannot see where in the OP's situation, they would be required to declare either, using the term agent is probably appropriate from a legal point of view, but not a revenue point of view, they simply pass the money collected to the landlord.

Best thing to do OP is to ring the Revenue helpline if you need anything clarified.

Graham

Mod Note

on that note I think the OP needs to take professional advice.

Thread closed.