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Rent relief query

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  • 03-02-2005 11:54am
    #1
    Sparklybubble
    Closed Accounts Posts: 1 ✭


    I used to rent out rooms in my house. However I was always under the impression that once the income I was receiving was under the €7200 a year mark then it didn't have to be declared.

    However having done a search on this it seems like I should have declared this amount to the tax office and then I wouldn't have had to pay tax anyway.

    Does anyone know if this is correct ?
    And because these aren't the procedures I followed what would the penalties be/ if any ??

    The reason I'm looking this up in the first place is one of my ex-tenants is now looking for my PPS number to claim back tax ?
    Any advice would be much appreciated...

    Also does anyone know how much a tenant needs to have paid a year to claim the maximum amount back- for the year in question- 2003- the maximum relief available was 254 from what I can see.


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    #2
    Borzoi
    Registered Users Posts: 2,876 ✭✭✭Borzoi


    Sparklybubble wrote:
    I used to rent out rooms in my house. However I was always under the impression that once the income I was receiving was under the €7200 a year mark then it didn't have to be declared.

    Just because you don't pay tax on it doesn't mean you don't declare it - hey, thats the bureucracy. But you don't have a tax liability.

    If this all happened in 2004, give the Revenue a call and declare it now, get a balancing cert from them to reflect the extra income. If it's for previous years I don't know, but I can't imagine Revenue making a big deal of it.

    AFAIK once the tenant pays more than €1270 a year they can claim that €254 (it's relief at the standard rate - 20% )


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    #3
    Victor
    Registered Users Posts: 78,387 ✭✭✭✭Victor


    Sparklybubble wrote:
    The reason I'm looking this up in the first place is one of my ex-tenants is now looking for my PPS number to claim back tax ?
    Any advice would be much appreciated...
    Sounds like a guilty mind. :D

    I don't think there will be any problem if you go to them and say "Look, I forgot to include this, but I don't think I have any liability / any liability has been paid. Can we sort it out?" Going to them early is much better than them questioning your income 5 years down the line and you having no evidence to back it up. In theory you have made an incorrect return, but if you are the one who owns up, they are unlikely to bother wasting their time investigating you, they'll investigate someone they can get money from.

    Note that the ~€7,000 limit includes all payments from all tenants in the year, including bills.
    Borzoi wrote:
    AFAIK once the tenant pays more than €1270 a year they can claim that €254 (it's relief at the standard rate - 20% )
    For a tenant to claim the full relief they would need to have paid €1270 tax. If they paid some tax, they would still be able to claim partial relief.

    The relief is €300 (single person) for 2005.


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