Rent a room tax relief

Peterk88

HI everyone,

Posting for a friend as iv no experience.

Said friend leasing out a room to a apprentice only few months a year for 5400 euro. He declared his income as exempt and also declared the rent a room relief scheme.. he's heard nothing back from revenue even asking them what does he need to submit etc but he's worried he's gonna get hit with a big tax underpayment.. I told him no he shud be fine but he's worried to the hilt on it. Anyone care to share their info on it ?

relax carry on

https://www.boards.ie/discussion/2058397452/rent-a-room-tax-relief

Your friend should have gotten a statement of liability from Revenue when he filed his tax return declaring his rental income. Link below explains. That's all he should get from Revenue as it's the result from the tax return filed.

https://www.revenue.ie/en/jobs-and-pensions/end-of-year-process/statement-of-liability.aspx

Peterk88

He's done his SOL hasn't received it yet.. he's just wondering does he get relief on the sum or will be get taxed to the hilt on it.

relax carry on

https://www.boards.ie/discussion/comment/123195659#Comment_123195659

If he met the criteria and declared it correctly then he's not taxed on it. The link below explains how to declare it. So long as he followed the instructions, he should be fine. By the way, statement of liabilities should issue within 48 hours of submitting the tax return.

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