Rent a room scheme-ESB & Heating Bills

[Madangan]

I have checked in the Revenue website and done a forum search before posting so apologies if the answer is obvious elsewhere on AAM.

I have rented out a room/rooms a number of years since the Rent a room scheme first began and have always declared income etc.. I have never come close to threshold so while I often wondered whether Tenants contributions to ESB and Gas bills,Refuse charges,Cable bill etc.. were included as Rent it was purely academic until now. This year I will be skating very close to threshold so are these additional payments Rent for the Rent A Room Scheme purpose or not? I know charging for Food and Laundry is considered Rent and "similar services".

ESB and Heating(Bord Gais) are the only extras I charge for but I would be interested in position re Bins and TV also.

Particularly interested to hear from anyone who has dealt with the Revenue on these queries previously.

These Bills would push me over the edge of the threshold(and in other ways as well).

Thanks,

Madangan

 

[Bronte]

I don't know the answer to your question but if they do put your over the threshold then you shoud reduce the rent or the bills.

Maybe initally a telephone call to the correct person in revenue who might direct you to what the rules are exactly.

The revenue website is quite large, there are sections where they advise professionals with briefings etc you might find the info there. I know I've found information there that I haven't found in the obvious places. Hope this make sense to you.

 

[serotoninsid]

The following taken from revenue.ie;

Where an individual rents a room (or rooms) in a 'qualifying residence' and the gross rent received, including sums arising for food, laundry or similar goods and services and the income does not exceed €10,000 (2008 et seq.) this income will be exempt from income tax by including it in the individuals tax return.
So it seems a bit vague. What should be classed as similar goods and services?

 

[Graham_07]

The following taken from revenue.ie;

Where an individual rents a room (or rooms) in a 'qualifying residence' and the gross rent received, including sums arising for food, laundry or similar goods and services and the income does not exceed €10,000 (2008 et seq.) this income will be exempt from income tax by including it in the individuals tax return.
So it seems a bit vague. What should be classed as similar goods and services?

I would consider it to mean any such items, similar to laundry, or refuse, or ESB or maybe even internet etc. which the person is paying for or getting included in the Rent-a-Room scheme rent. Think of those items they might be paying for if they were renting independently, ESB, refuse, use of washing machine & other appliances etc.

I would consider the Revenue's approach here is to avoid a situation where someone gets, say, €9,000pa in rent then another €4,000pa for all these other things, clearly then getting more than the €10,000 allowed.

 

[missdaisy]

I would argue that it means providing food or services such as laundry to the tenant and getting paid for these, which would be profit. Payment of ESB or gas is not a benefit being received by the owner as the tenant is more or less paying for what he/she uses. I would ring Revenue just for peace of mind and let us know what Revenue's answer is!

 

[tkane]

I agree with missdaisy on this. Sharing of esb bills between landlord and tenant(s) is not the same as the provision of services such as food, laundry etc by landlord to tenant.

 

[Madangan]

Seems Im not the only one who thinks its a bit vague

Come November my tenants might be getting an early Xmas pressie!! One rent free month!

Problem with ringing Revenue is that unless you get quoted something that you can then have backed up in writing then its not really sufficient to protect me... nonetheless thats what I will do..but I better sort out all my tax arrears first

 

[Bronte]

Graham 07 is clued into these things so I think you are going over the limit and his post make the most logical sense from a revenue point of view. As you said the only way to be 100% sure is to get it in writing from revenue. Please post their reply here for everyone's benefit.

I wouldn't give them a month's free rent though, I'd just not charge them one bill or reduce the rent.