Rent a room question

S

Straylight

Guest
My girlfriend will be moving in with me during the summer. I'm currently paying the mortgage that is in my own name only, and will continue to do so after she moves in. She will, however, be contributing towards the mortgage repayments and I was wondering a) whether she can claim rent relief on the money she will be paying; and b) if so, would I have to register with the Revenue Commissioners as her landlord?
 
That would be or...

Which is really why I was asking the question. While I know it's called the Rent a Room Scheme, I wasn't sure if it covered a case like ours where one person already owns the house and the other effectively becomes a tenant, although obviously with different living arrangements to a tenant.
 
Here's some info about your first question, regarding her entitlement to a tax credit for rent paid, essentially she'll only be entitled to it if she was already in rented accomodation at 7th December 2010. Anyone who first starts renting after that date isn't entitled to the credit...
http://www.citizensinformation.ie/en/housing/renting_a_home/tax_relief_for_tenants.html

And as regards your second question, you do not need to register with Revenue or the PRTB, as long as your situation falls within the category of "rent a room"; however you are obliged to inform Revenue of the amount of such income you have received each year (usually by way of a Form 12 - I'm not sure if there's a facility to enter Rent a Room income on PAYE anytime...)

And finally, from a personal finance point of view, you might be better off if there is seen to be a landlord/tenant relationship, just in case there's ever trouble in paradise in the future...
 
Thanks for that. I'm still a little unclear about the legalities though. Obviously we don't want to do anything that would be illegal, so probably what I should have asked is if it's legal for my girlfriend to claim rent allowance given that she won't specifically have a room of her own.
 
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