Are you looking for a way to earn some extra income without paying tax on it? If so, the Rent-a-Room scheme could be just what you want. This scheme is designed to help homeowners and tenants make the most of their spare rooms by renting them out. In this guide, we’ll break down everything you need to know about the Rent-a-Room scheme, from what it is and how it works to who can qualify and what the rules are. So, let’s dive in!
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€14,000 from Revenue Scheme Amid Rising Living Costs
- There’s a plan that could help thousands of people get up to €270 every week.
- This plan lets you earn as much as €14,000 a year without paying any tax on it. Plus, an extra 28,000 houses in the country can now be part of this plan.
What does the plan involve?
- The plan is to let out rooms in your house for people who need a place to stay.
- Even if you have a self-contained unit like a flat in the basement or a converted garage attached to your house, you can let it out under this plan.
- From December 1, 2023, if you’re a local authority tenant, you can rent a room to a university student and earn up to €14,000 a year tax-free. But you must follow some rules and apply them to your local authority first.
Who can be part of this plan?
- Your house must be in the States, and you should live there for most of the year.
- You don’t always have to own the property; you could be a tenant subletting to someone else.
- But, if you’re renting to a tenant getting Housing Assistance Payment, you must own the property and show proof of ownership.
How much can you earn?
- The total rent you get, including any money the tenant pays for food, utilities, laundry or similar goods and services, cannot be more than €14,000 a year from January 1 to December 31.
What are the rules?
- If you’re getting a means-tested weekly social assistance payment, Supplementary Welfare Allowance or Working Family Payment, you can earn up to €269.23 a week or €14,000 a year by renting out a room in your home. This won’t affect your social welfare payment.
- However, you need to ensure that renting a room doesn’t affect any other benefits you’re receiving, like Fuel Allowance.
- This doesn’t apply to short-term rentals of less than 28 days in a row, and it also doesn’t apply if you’re renting a room to an employee or a family member.
Who are considered family members?
Family members include:
- Your husband, wife, or partner
- Your child, or your child’s husband or wife
- Your parent, step-parent or parent-in-law
- Your brother or sister, including step-brothers or sisters or brothers or sisters-in-law
- Your grandparent or your grandchild
- Your aunt or uncle
- Your nephew or niece
Anything else to know?
- The Accommodation Recognition Payment for hosting refugees from Ukraine is not included in the means test for a weekly social assistance payment, Supplementary Welfare Allowance or Working Family Payment.
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Abhilash, an exam specialist with a passion for education, writes comprehensive articles on exam results and admit cards. His expertise ensures students receive reliable information and useful tips to excel in their exams.