Rent Relief & Engaged Couple

I was listening to the radio going home fom work last night and somebody from was on telling people about tax reliefs they could claim back. That got me thinking so checked out the revenue site and found the [broken link removed].
Now the story is that I bought a house 3.5 years ago. About 1.5 years ago my girlfriend moved in with me and has been paying rent ever since. The amount she is paying does not exceed the threshold of €7,620 at which I would have to pay tax on the income. So my question is now can she claim back rent relief for the last 1.5 years (and also going forward for the next 10 months before the wedding).
I am guessing that technically it can be done as according to the revenue we are still two seperate entities.
Now would it have any impact when next year we inform the revenue of the marriage and they (possibly) see that she has been paying me rent for the previous years ?
Secondly what forms (if any) do I need to fill out to inform the revenue that I have been recieving this rental income?
Thanks

If you mean can you avail of the rent a room scheme and can she claim rent relief then as long as the transactions are legitimate the answer is yes on both counts as far as I know. Once you are married the rent a room scheme and rent relief are no longer relevant also as far as I know. If you are availing of the rent a room scheme then you should be declaring the income (e.g. on a Form 12 return) even if no tax is due. What have you been doing to date?

All we have been doing to date is she pays me so much every week. This then contributes to the mortgage on the house. I have been doing nothing with regards declaring the income.
I knew I could get so much ( €7,620 ) without paying tax on it, and stupidly I suppose, didnt think I then had to declare it....
Can that be backdated and no penalties incurred or could the revenue catch me on something there??

You should probably get independent, professional advice from an accountant or tax advisor on filing a late return under the rent a room scheme. Personally I suspect that you will be OK if you sort it out now based on past experience of honest mistakes with late returns etc. However I can't say for sure.

Will do so Clubman.
Thanks for the advice..

Munsterfan,
you say that your girlfriend moved in about 1.5 years ago? Unless I'm very much mistaken your 2005 tax return isn't due in Revenue until 31/10/06 so there's no issue of late filing. Perhaps someone else might clarify this??

Is that filing date not only of significance to the self employed?

Yes the due date for your 2005 Return will be no later than 31 October 2006. So you should be ok.
If you were late then Revenue could tax you on the rent received less your expenses and not allow you claim the rent a room scheme as one of the requirements for the rent a room scheme is you file a tax return.

Thanks for all the advice people. God this is a great forum .
Must get those forms filled out so ASAP.

munsterfan said:

I am guessing that technically it can be done as according to the revenue we are still two seperate entities.
Now would it have any impact when next year we inform the revenue of the marriage and they (possibly) see that she has been paying me rent for the previous years ?
Secondly what forms (if any) do I need to fill out to inform the revenue that I have been recieving this rental income?
Thanks

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Yes she can claim rent relief - you just need to give her some kind of receipt for her rent as they might ask for it.
You inform the revenue by filling out a P12 (I think) at the end of the year and they'll send you a P21 balancing statement which is basically like a P60. You won't have to pay any tax and you don't need to register the tenancy.

If she has been paying rent for several years and not claiming then thats her loss as far as they are concerned.

lff12 said:

If she has been paying rent for several years and not claiming then thats her loss as far as they are concerned.

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Are you saying so that she cant claim back rent relief for the last 1.5 years, even though my tax returns for last year would not need to be in untill Oct 06? Or am I just reading this totally wrong ??
Is this not contrary to what to this

Lorraine B said:

Munsterfan,
you say that your girlfriend moved in about 1.5 years ago? Unless I'm very much mistaken your 2005 tax return isn't due in Revenue until 31/10/06 so there's no issue of late filing. Perhaps someone else might clarify this??
.

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