# Do I need to show details of my rental income at means test interview?



## Ammo (6 Jul 2013)

I am currently applying for Job Seekers Allowence. I have a means test interview with a social welfare officer next week. I own a house that is in negative equity that is rented out. I do not live in the house and the rental income does not fully cover the mortgage.

I was asked to bring details of my rental income to the interview when I dropped back my forms. I asked the woman in the social welfare office why would this information be required when the house would be assessed on its capital value and rental income is not means tested. She said he would need to see this information anyway. 

Why would I need to provide this information if it is listed on the social welfare site as not being a requirement of the means test? Would it be ok to not bring it to the interview if it has been asked for? I think it's fair to provide all the required information to see if Im entitled to receive anything but I don't feel comfortable about revealing personal information beyond what's required. 

If anyone has gone through a similar situation Id greatly appreciate any advice. Thank you.


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## Brendan Burgess (6 Jul 2013)

> I don't feel comfortable about revealing personal information beyond what's required.



You are asking the taxpayer to pay you Job Seekers' Allowance.

You own a house on which you are getting rental income.   

I think you should provide whatever information is required.  

I don't know how the means test works. But if you have rental income well in excess of the interest element of your mortgage repayments, you should not be getting a social welfare payment from the tax payer.  In effect, they would be repaying your mortgage for you.


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## seantheman (6 Jul 2013)

Will you be providing SW with details regarding mortgage payments for said house?


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## pudds (6 Jul 2013)

*Capital and property not personally used*

  Capital includes property (*not* your home), savings and investments. 
  If you own property (excluding your home) or you have investments or any other form of capital, the value is assessed, using a standard formula (see below) whether or not you are getting an income from the property or investment. 



If property is rented you will not be assessed on the actual income from the letting. Any outstanding mortgage registered against the property is deducted from the market value to find the capital value.


  The property and investments that may be assessed include savings in a bank account (or anywhere else), a house that you have let and stocks and shares. If you or your spouse, civil partner or cohabitant saves a portion of your social welfare payment each week, these savings as well as savings from most other sources will be taken into account as part of your means.


  The formula for assessing the value of capital including property (but not your own home), savings and investments is as follows:


First 20k of Capitol = Means Nil
Next 10k = €1 per 1,000
Next 10k = €2 per 1,000
Bal 40k+ = €4 per 1,000


http://www.citizensinformation.ie/e...ents/means_test_for_jobseekers_allowance.html


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## Luternau (6 Jul 2013)

Thats interesting.

Is the rental income less interest and reasonalble costs less income tax on any profit, not considered as income?


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## Brendan Burgess (6 Jul 2013)

That test is totally inappropriate in an era where the rental income exceeds usually the interest paid but particularly now in the era of cheap tracker mortgages.


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## Luternau (6 Jul 2013)

I totally agree there-assuming tracker of course!


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## seantheman (6 Jul 2013)

*Capital and Property not Personally Used and Enjoyed*

Capital (savings and investments) and the value of property owned but not personally used or enjoyed are assessed as means.
Where capital or property is assessed on this basis, any income received from its use (e.g. interest on savings, dividends from shares, rent from property let) is not assessed as cash income.

from


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## Brendan Burgess (6 Jul 2013)

Luternau said:


> I totally agree there-assuming tracker of course!



Especially if it's a tracker, but it equally applies to a SVR mortgage.


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## Luternau (6 Jul 2013)

@Seantheman
The issue is that the basis of assesment is, perhaps too general. One could be on an interest only tracker for the life of the mortgage, and thus be making a conserable net protit on rental income. This is real income. If one had multiple properties, this could be a lot of money. It therefore seems strange that it would be excluded as income-whther for JSA or any other benefit.


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## seantheman (6 Jul 2013)

Luternau said:


> @Seantheman
> The issue is that the basis of assesment is, perhaps too general. One could be on an interest only tracker for the life of the mortgage, and thus be making a conserable net protit on rental income. If one had multiple properties, this could be a lot of money. It therefore seems strange that it would be excluded as income-whther for JSA or any other benefit.


 
I don't think that's the OP's issue, perhaps an issue for a new thread


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## Luternau (6 Jul 2013)

seantheman said:


> I don't think that's the OP's issue, perhaps an issue for a new thread



How can that be detemined for sure from the information posted?


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## Ammo (8 Jul 2013)

Thanks for the responses. My rental income is well below the mortgage repayments. I have a fixed mortgage for the past 8 years, so tracker comments don't really apply to my situation. I have already provided mortgage repayments info to SW.


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