Property owners with spare rooms should consider taking advantage of the rent-a-room relief which allows those who rent out a room to earn up to €14,000 tax free, a Fine Gael TD has said.
Deputy Emer Higgins, Fine Gael Spokesperson on Housing, said, “The rent-a-room relief has two main benefits; it helps homeowners make ends meet and it also increases the availability of rooms and the supply of accommodation.
“People whose children have left home and may wish to boost their income in retirement, as well as first time homeowners with larger mortgages, would really benefit from this measure if they rented out a room.
“You can earn up to €14,000 per calendar year, completely tax free – just under €270 a week on the basis the room is let for the full 52 weeks.
“For those who are already availing of this scheme, remember to claim your relief this year. If you are self-assessed, include the amount of exempt income on your Form 11 or if you pay through the PAYE system, include it in your Income Tax return.
“Perhaps the most important thing to keep in mind when availing of this benefit is that if the rent exceeds €14,000, you will be required to pay tax on all of the rental income earned.
“There are also a few other rules to be aware of; the scheme only applies to principal private residences and not second homes; the room, or rooms, cannot be let to your partner or child; and they must be let for a minimum of four weeks.
“The minimum stay duration makes the scheme ideal for renting out rooms to students. Never has student accommodation been more in demand, and I would encourage any homeowner in a university or college town that has a spare room to consider letting it to a student this year,” concluded Deputy Higgins.