Rent a Room & Income Tax

[ixus]

Hi,

I searched through the forum but couldn't find an answer to this question.

With regards the rent a room scheme, if you take in 7K per annum and declare it, does this affect your tax band i.e. if you're earning at the lower tax rate and the 7K would bring you income into the higher tax band?

Thanks,

Ixus

 

[Stifster]

I would have thought that as it isn't taxable earnings then it should not bring you into the higher band.

 

[Graham_07]

Up to 7,620pa is exempt from tax so it has no relevance to your tax bands. The tenant is entitled to claim tax relief on the rent paid ( subject to certain exclusions ). MOre information here

http://www.citizensinformation.ie/categories/housing/buying-a-home/owning-a-home/rent_a_room_scheme

 

[ixus]

Thanks,

I was pretty sure this was the case. Just wanted to be 100%