Live in landlord renting multiple rooms and tax/rtb implications

T McGibney said:
How to protect yourself against the possibility of a lodger
- refusing to leave
- engaging in difficult or antisocial behaviour
- claiming tenancy rights
- creating other unforeseen difficulty for the householder.
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Out of interest, tell me how you might "protect yourself" from an invited guest who refuses to leave?
 
One reason you get a licence drafted is the clear ability to end the agreement to residence. Also conditions can be built in plus payment terms. And you simply don't want to turn into a tenancy by poor wording. That is what I would do. That is how you protect yourself. Most times most are reasonable but nightmares do occur.

Rent-a-room was put up in Taxes ages ago and as has been pointed out it is €14,000 including any and all payments such as periodic payments to say and shares of bills etc.

One point is that you must claim the relief by filing a tax return - that's what Revenue say.
 
T McGibney said:
How to protect yourself against the possibility of a lodger
- refusing to leave
- engaging in difficult or antisocial behaviour
- claiming tenancy rights
- creating other unforeseen difficulty for the householder.

There are probably other potential issues. IANAL.
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going to a solicitor for advice will not protect you from any of the above happening. Having lodgers, like everything else you take a chance on in life can come with risks, which is why it's crucial to interview and get references from potential tenents. I, and friends of mine have rented rooms without any of these issues arising although I've had to ask one tenent to leave because their bahaviour didn't align with my rules not because they did anything terrible. I don't know why you think a lodger can claim rights to your home when they are renting a room, that seems a bit paranoid to me.

I'm sure we could all dig out horror stories about tenents but that is very rare and solicitors advice is not going to protect you, just cost you money. If any of the above does happens, call the Gardai.

My advice is don't do it if your not strong enough to tell someone to sling their hook if they are acting inappropriately in your home.
 
T McGibney said:
Nobody disputes that, but effective planning with the benefit of legal expertise can minimise the risk of it happening, and the consequences if it does happen.

I never made any such claim.
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No amount of legal advice can protect you from a tenent who won't leave your home but the Gardai might, it's so unlikely to happen that I don't know why you are at pains to continue to stress the point. You've also alluded to the fact that a tenent may claim rights to your home when that is an impossibility. If someone tried that they would be seen for the chancer they are, however, that to is extemely unlikely to happen.
 
Nicki Mac said:
You've also alluded to the fact that a tenent may claim rights to your home when that is an impossibility. If someone tried that they would be seen for the chancer they are, however, that to is extemely unlikely to happen.
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Again I didn't say that, or anything to that effect. Please stop claiming that I did.

I did say that a lodger (not a tenant) may well refuse outright to leave rent-a-room accomodation.

People can make up their own minds on what might happen if a lodger legally resists their eviction and for example later tells a judge that they cannot for whatever reason be made homeless by an "unreasonable" householder. Yes, it's a remote possibility in any given case, but I don't think it's beyond possibility either.
 
Apologies if I took you up wrong.
Hopefully the OP has enough information to take a common sense approach in decision making, and others can benefit from it too which is what AAM is all about.

My advice as an active landlady with a room renter in situ is to go for it while keeping the following in mind

1.Only do it if you are strong enough to ask them to leave if it's not working out
2. Interview and get references from potential tenents
3. Be clear about house rules from the get go
4. Stay within the 14 k limit for tax exemption
5. Declare the income on your tax return under rent a room scheme
6. Good luck! I have found it to be a great way to earn extra money.
 
Does it look like the 14k limit will increase again after many years to compensate for inflation etc.etc. Thanks
 
Nicki Mac said:
Apologies if I took you up wrong.
Hopefully the OP has enough information to take a common sense approach in decision making, and others can benefit from it too which is what AAM is all about.

My advice as an active landlady with a room renter in situ is to go for it while keeping the following in mind

1.Only do it if you are strong enough to ask them to leave if it's not working out
2. Interview and get references from potential tenents
3. Be clear about house rules from the get go
4. Stay within the 14 k limit for tax exemption
5. Declare the income on your tax return under rent a room scheme
6. Good luck! I have found it to be a great way to earn extra money.
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Good advice.
Re # 2 - people renting a room ie. sharing the owner's home with the owner, are not tenants. At least, not currently.
 
WizardDr said:
One point is that you must claim the relief by filing a tax return - that's what Revenue say.
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Just for clarity on this point, lest anyone might misunderstand, the relief in question is an exemption from tax, under section 216A TCA 1997. The legislation doesn't require that a claim be made, on a return or otherwise. If you have income within the scope of the exemption, then it's exempt by operation of law, regardless of whether you file a return or not.

Revenue are of the view that a person completing a return is required to include details of their rent a room income in their return, in order for the return to be correct & complete - this is not the same as being required to "claim the relief".
 
torblednam said:
Just for clarity on this point, lest anyone might misunderstand, the relief in question is an exemption from tax, under section 216A TCA 1997. The legislation doesn't require that a claim be made, on a return or otherwise. If you have income within the scope of the exemption, then it's exempt by operation of law, regardless of whether you file a return or not.

Revenue are of the view that a person completing a return is required to include details of their rent a room income in their return, in order for the return to be correct & complete - this is not the same as being required to "claim the relief".
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What happens if you forget to 'include details of the rent a room income' on your tax return?
 
Bronte said:
What happens if you forget to 'include details of the rent a room income' on your tax return?
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Absolutely nothing happens, except that arguably (and it would be open to interpretation / argument) your return is not a complete / correct return, and that defect could mean that no four year time limit applies to it. So in theory, Revenue could come looking at that return (in respect of other matters unrelated to the RaR income, like trading income) without any time limit.

It's quite unlikely to happen, but you are exposed to it, if you don't include the exempt RaR on the return. The most plausible scenario would be if a person's bank made a disclosure to Revenue, based on seeing regular lodgements of money into their personal account from third parties (their lodger(s)) - if Revenue don't have a return that discloses the income, they will be much more likely to ask questions.
 
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