Is it possible to let out 2 rooms and still claim Illness Benefit?

[red37]

My Aunt is on illness benefit with 6 months can she rent out 2 rooms in her house to help with bills or will it affect her illness benefit weekly payments under new rules ?

 

[STEINER]

Hi,

Illness Benefit is not a means tested payment, so it is not connected in any way to renting out rooms. It is a taxable income for Revenue, ie it is taken into account, which may or may not mean tax is payable depending on your Aunt's overall income etc.

 

[Gervan]

Rent-a-room relief still exists doesn't it?

Not taxable if the gross income is under €10,000 and the aunt is living in the house.

 

[red37]

So if i understand correctly a rental income will not affect her illness benefit but she has to pay tax on it or has to look in to the tax side of it?

 

[STEINER]

Yeah, it has no effect on the illness benefit. Just check out what Gervan mentioned.

 

[Bronte]

So if i understand correctly a rental income will not affect her illness benefit but she has to pay tax on it or has to look in to the tax side of it?

No, money received under the rent a room scheme, as long as it's below the limit, it not taxable.

But that is completely separate to the rules for social welfare. So you need to find out the actual rule.