rent a room and expenses

rynivn

Registered User
Messages
11
Was looking at the limit of 7,620 which works out at EUR 317 a month. If 2 rooms were rented out at EUR 300 each per month and expenses like electricity and gas were added at EUR 30 per month, would that count as being over the limit ?

Also, can you just charge an estimate of what the expenses are ?
 
Why not just charge 315 per month for each of the two rooms and then you will be within the limits.
 
rynivn somebody said on the site the other day the 7620 limit had gone up a bit just so you know maybe look up revenue.ie to confirm and I agree with the point made by steph
 
rynivn somebody said on the site the other day the 7620 limit had gone up a bit just so you know

No it hasn't

maybe look up revenue.ie to confirm
I certainly wouldn't take everything on revenue.ie as gospel, if I were the OP

Was looking at the limit of 7,620 which works out at EUR 317 a month. If 2 rooms were rented out at EUR 300 each per month and expenses like electricity and gas were added at EUR 30 per month, would that count as being over the limit ?
Yes
Also, can you just charge an estimate of what the expenses are ?

No, why would you want to do this. Expenses are irrelevant to the Rent a Room scheme.
 
I was of the understanding that you could off-set some expenses like maintainance from your rental income thereby helping you come in under the €7620 figure.

E.G.

Total Income = 10000
Maintainance = 3000
Net Income = 7000

Therefore the 7000 is less than the €7620 figure, so you have no tax liability.
 
No, why would you want to do this. Expenses are irrelevant to the Rent a Room scheme.

From Guide to rental income - Rent a room scheme
and the gross rent received, including sums arising for food, laundry or similar goods and services

I was of the understanding that you could off-set some expenses like maintainance from your rental income thereby helping you come in under the €7620 figure.

If by maintainance you mean painting repairs etc then NO you can't deduct these expenses
 
This is not the case with the rent a room scheme as far as I know.
 

What is your source for this?
 
The Rent a Room scheme has a clearcut ceiling of €7620. You cannot claim 'expenses' or 'maintenance' against the overall rental income in this situation.
 
Yeah pretty sure this is incorrect from my accountancy course

 
Thanks for the info, so it basically means that if a renter uses electricity that this must be included in the limit ?
 
Thanks for the info, so it basically means that if a renter uses electricity that this must be included in the limit ?

No, the gross amount you charge them for rent (or bed & board etc.) is what counts as your rental income when checking if you are under the €7620 limit. You cannot deduct any of YOUR expenses to reduce your income (e.g. maintenace as referred to previously). Nor can you reduce your rent and charge them a fixed amount for electricity etc.

imo, you would be able to split with them their share of actual gas/electricity bills (but am open to correction on this).