Rent a Room - If exempt do you / how do you delcare

[Cityliving]

Hey there,

If you rent-a-room below the tax limit do you delcare it to the revenue?

If you dont ordinarily send in taxes (PAYE worker) how would you do this just send in a letter saying you are doing it?

With thanks

 

[ClubMan]

If you rent-a-room below the tax limit do you delcare it to the revenue?

Yes.

If you dont ordinarily send in taxes (PAYE worker) how would you do this just send in a letter saying you are doing it?

If you don't want to fill in a Form 12 then just write to them with the info. However they may then ask you to do a Form 12 in which case you are obliged to do so.

 

[Cityliving]

Thanks

I know a load of people who told me that they never have but I doubted that they were right!

After I get my told-you-so cap on I`d like to know what they can do- Can they send in a review of this and say that they werent aware and tell then revenue what they earned in the years?

Cheers

 

[ClubMan]

I know a load of people who told me that they never have but I doubted that they were right!

Pretty sure they're wrong.

Also - just searched Revenue.ie and it looks like a [broken link removed] might actually be the appropriate form after all. See section G 415 (a).

After I get my told-you-so cap on I`d like to know what they can do- Can they send in a review of this and say that they werent aware and tell then revenue what they earned in the years?

Not sure - it's possible that undeclared rent a room income could be assessed for tax as normal income I suppose?

 

[Clarkey]

Pretty sure they're wrong.

Also - just searched Revenue.ie and it looks like a [broken link removed] might actually be the appropriate form after all. See section G 415 (a).

Not sure - it's possible that undeclared rent a room income could be assessed for tax as normal income I suppose?

Only thing I could see happenig is the fine for not filing a tax return. Think the max fine is €3,000 but very unlikely as no tax problem arises.

 

[Cityliving]

I would assume that they would accept the explanation of not knowing surely?

If they remained beneath the taxable level any % of tax punishment would not apply.

I`ll call the revenue and see what they say

 

[ClubMan]

I would assume that they would accept the explanation of not knowing surely?

No. Certainly not. Individuals have a responsibility to keep their tax affairs up to date and to get professional advice if necessary. Revenue do not accept ignorance of the rules as an excuse for making an incorrect return or none at all.

If they remained beneath the taxable level any % of tax punishment would not apply.

Maybe. Maybe not. I don't know.

I`ll call the revenue and see what they say

About what they might do in such a hypothetical situation? I'd say they will give you a pretty vague response along the lines of "all cases are considered on their individual merits blah blah blah".

 

[ubiquitous]

Not sure - it's possible that undeclared rent a room income could be assessed for tax as normal income I suppose?

This possibility is probably fairly remote, but the legislation states clearly that including the relevant details on a tax return is a precondition to be eligible to avail of the relief, so...