You should note that if the rental profit is over €3,857 then it is more beneficial to have the rental income taxed @ the 20% rate
eg
1. Tax on Rental income = €3,857 x 20% = €771
2. Tax on Rental Income = €3,857 x 41% = €1,581 less HCC of €810 = €771
So the €3,857 is the break-even point at which there is no gain or no loss from either choice