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Rent a room

  • 19-01-2021 7:44pm
    #1
    ZeldaF
    Registered Users Posts: 39 ✭


    I rent a room from time to time in my own home,
    Max I would earn in a year is circa 8k. I don't work and have a pension of 90europer week. My total income does not exceed 14k therefore perhaps stupidly I didn't realise I had to register for tax. Really panicking and don't know what to do.


Comments

  • #2
    relax carry on
    Registered Users, Registered Users 2 Posts: 4,085 ✭✭✭relax carry on


    ZeldaF wrote: »
    I rent a room from time to time in my own home,
    Max I would earn in a year is circa 8k. I don't work and have a pension of 90europer week. My total income does not exceed 14k therefore perhaps stupidly I didn't realise I had to register for tax. Really panicking and don't know what to do.

    Is your pension a state pension or a pension from an employment?

    You have to declare the income you get from renting out a room in your own house but you claim rent a room relief on it so long as you've met the terms and conditions of the relief.

    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx


  • #3
    mystic86
    Registered Users, Registered Users 2 Posts: 2,983 ✭✭✭mystic86


    You don't qualify for this if you're doing short term letting..


  • #4
    ZeldaF
    Registered Users Posts: 39 ✭ZeldaF


    relax carry on wrote: »
    Is your pension a state pension or a pension from an employment?

    You have to declare the income you get from renting out a room in your own house but you claim rent a room relief on it so long as you've met the terms and conditions of the relief.

    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx

    Its widows pension. I don't have any other income. I thought you were allowed earn some money without paying tax?


  • #5
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,407 CMod ✭✭✭✭Pawwed Rig


    mystic86 wrote: »
    You don't qualify for this if you're doing short term letting..

    That is not clear from reading the OP.


  • #6
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,407 CMod ✭✭✭✭Pawwed Rig


    ZeldaF wrote: »
    I rent a room from time to time in my own home,
    Max I would earn in a year is circa 8k. I don't work and have a pension of 90europer week. My total income does not exceed 14k therefore perhaps stupidly I didn't realise I had to register for tax. Really panicking and don't know what to do.

    First of all do not panic. You are not going to pay any tax based in the figures you provided regardless of your status. There may be a bit of USC or PRSI depending on your circumstances. Open up an account called 'myaccount' on revenue.ie and it can all be resolved that way. If you need any further help post here (or pm me).


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  • #7
    relax carry on
    Registered Users, Registered Users 2 Posts: 4,085 ✭✭✭relax carry on


    ZeldaF wrote: »
    Its widows pension. I don't have any other income. I thought you were allowed earn some money without paying tax?

    Your tax position won't be known until you file your tax return but if your only only additional income is the rental income then that's probably only 12500 (full widows pension according to citizens information) and 8000 rental income for the year. If your rental income qualifies for the rent a room relief then that 8000 is discounted for tax purposes. Even if it isn't and you are taxable on the full 20500 then there's little to no tax to be paid.


  • #8
    Will Yam
    Registered Users, Registered Users 2 Posts: 671 ✭✭✭Will Yam


    relax carry on wrote: »
    Your tax position won't be known until you file your tax return but if your only only additional income is the rental income then that's probably only 12500 (full widows pension according to citizens information) and 8000 rental income for the year. If your rental income qualifies for the rent a room relief then that 8000 is discounted for tax purposes. Even if it isn't and you are taxable on the full 20500 then there's little to no tax to be paid.

    Agreed.

    You will pay no usc or prsi on the widows pension. If you are 66 or over you pay no prsi on anything else.

    So max you will probably pay is (assuming full widows pension)

    Pension. 12500
    Rent a room. 8000

    Total. 20,500

    ( you might be able to reduce the 8000 by any expenses relating to the let room) but leaving that aside your tax position would be assuming you are 66 or over)

    Income. 20,500

    Tax

    20,500 x 20%. 4100

    Less

    Personal credit (2190)
    Paye credit. (1650)
    Age credit. (245)

    Total tax. 15

    USC 8000 x 0.5%. 40

    Prsi. 0

    Total deductions. 55 per annum.

    So you will owe about €1 a week!


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