Rent tax credit : €500 from 2022 i.e. this year

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DannyBoyD said:
according to link posted by Sunny (and as I guessed myself) - "and the landlord must be registered with the Residential Tenancies Board (RTB)"

if you are renting rooms shared in your home, you don't need to register with RTB
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So anyone in digs, rent a room out of luck. Would argue these people would often be the hardest pressed income wise.
 
www.thejournal.ie

Explainer: There's a new Rental Tax Credit, how can I avail of it and when will it be paid?

Does my landlord need to be registered? What if I’m on HAP?
www.thejournal.ie www.thejournal.ie

Will I need to provide proof of the rent I pay?​

The Department of Finance say that rent-a-room arrangements and student accommodations where the property is your principal private residence and where you pay sufficient rent (rent paid of €2,500 in a tax year) would also be sufficient to avail of the full credit.

and from the same article..

Does my landlord need to be registered with the Residential Tenancies Board?​

A thorny question for a country in the middle of a housing crisis.

Minister for Finance Paschal Donohoe told reporters yesterday that yes, your landlord must be registered, while Minister for Housing Daragh O’Brien has said that a tenant will “claim it on the basis of the registered tenancy number that they have”.


People who rent out a room in their house don't have to register with the RTB. (https://www.citizensinformation.ie/en/housing/renting_a_home/registering_a_tenancy.html)
Well they don't currently anyway.
 
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Say in relation to student accommodation, the student himself would need to have sufficient income for the rental credit to be material - is this correct?
 
You would have though they would do something to regulate and monitor compliance in the rent a room sector. Some landlords letting full homes, not residing and getting a lot of tax free income. They can also up the rent as they are not controlled.
 
Luternau said:
You would have though they would do something to regulate and monitor compliance in the rent a room sector. Some landlords letting full homes, not residing and getting a lot of tax free income. They can also up the rent as they are not controlled.
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Hasn't their regulation and monitoring done enough harm everywhere else? :cool:
 
DannyBoyD said:
is there any evidence this is actually happening?

I suspect, what's more likely is that owners are getting a lot more than 14k a year. €700/800 for a room in a house share is not unheard of these days.
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There was a recent post on another forum. Poster wanted to get licencee out of his PPR to give room a relative. Stated he lived elsewhere in Ireland and had not lived in the house for years. However, they kept a mattress in a room, somewhere in the house (that was not a bedroom) so they could stay there if they wanted. House had 4 beds and there was at least 4 people there. Owner claimed to be fair on rent, only 800 a room, but could charge more. That's over 30k a year. No way owner is registered as they were insisting it was their PPR, completely ignoring that to avail of rent a room, you must live there.
This is one case, but there are more. How do you measure what is not measurable, known etc.
I have no issue with Rent-a-Room, but wonder whether it should still be tax free. Its not earned income and why should it not be taxable?
 
T McGibney said:
The problem is that it is all too effective.
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I am lost. Effective regulation would be fit for purpose and implement/managed etc. A lot of our regulation is not fit for purpose and therefoe ineffective. Or am I on the wrong page altogether? :rolleyes:
 
Luternau said:
There was a recent post on another forum. Poster wanted to get licencee out of his PPR to give room a relative. Stated he lived elsewhere in Ireland and had not lived in the house for years. However, they kept a mattress in a room, somewhere in the house (that was not a bedroom) so they could stay there if they wanted. House had 4 beds and there was at least 4 people there. Owner claimed to be fair on rent, only 800 a room, but could charge more. That's over 30k a year. No way owner is registered as they were insisting it was their PPR and normal place of registration.
This is one case, but there are more. How do you measure what is not measurable, known etc.
I have no issue with Rent-a-Room, but wonder whether it should still be tax free. Its not earned income and why should it not be taxable?
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There's no reason in the world why Revenue, armed with suitable land registry, household electricity usage and electoral registers data, won't pick off these guys like daisies when the time is right and the interest bill is sufficiently high to make it worth their while.

In the meantime, it makes little sense to pull the plug on a crucial source of accommodation when the alternative is to send more people off to sleep under bridges.
 
Luternau said:
I am lost. Effective regulation would be fit for purpose and implement/managed etc. A lot of our regulation is not fit for purpose and therefoe ineffective. Or am I on the wrong page altogether? :rolleyes:
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The abolition of bedsits is an apt example of effective regulation. It achieved its purpose.
 
T McGibney said:
The abolition of bedsits is an apt example of effective regulation. It achieved its purpose.
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Are these not coming back under the guise of Rent-a-Room with houses of multiple occupation? ?You hear about properties where the living room is now a bed room.
 
Luternau said:
Are these not coming back under the guise of Rent-a-Room with houses of multiple occupation? ?You hear about properties where the living room is now a bed room.
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Are they? (Only a tiny subset of residential properties avail of the Rent-a-Room scheme, which anecdotally is a lot more popular now, than was the case a decade or so ago when bedsits were abolished.)

And the people who previously lived in them?
 
T McGibney said:
Are they? (Only a tiny subset of residential properties avail of the Rent-a-Room scheme, which anecdotally is a lot more popular than was the case a decade or so ago when bedsits were abolished.)

And the people who previously lived in them?
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There have been plenty of media reports of shared rooms, rooms with bunk beds etc. I dont know the stats on Rent-a-Room, but the concept of house shares and rooms for rent is quite common. Some may be fully let to one person who then sublets. Impossible to measure.
I know all is borne from a chronic shortage of private accommodation. The rent-a-room relief stands out as being quite generous. 14k tax free is a lot of money. I still don't understand why it's not taxable. Its pretty unique in that context.
I know Revenue have the power to go back and impose fines in cases of non-compliance/evasion. Maybe/hopefully they will.
 
Luternau said:
There have been plenty of media reports of shared rooms, rooms with bunk beds etc. I dont know the stats on Rent-a-Room, but the concept of house shares and rooms for rent is quite common. Some may be fully let to one person who then sublets. Impossible to measure.
I know all is borne from a chronic shortage of private accommodation. The rent-a-room relief stands out as being quite generous. 14k tax free is a lot of money. I still don't understand why it's not taxable. Its pretty unique in that context.
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Because accommodation is scarce enough as it is?
Luternau said:
I know Revenue have the power to go back and impose fines in cases of non-compliance/evasion. Maybe/hopefully they will.
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Imposing fines is neither here nor there compared to what they extract in typical arrears, interest and penalty cases.
 
Luternau said:
Some may be fully let to one person who then sublets.
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As long as the tenant in question has the permission of the owner and the property is their primary residence, this is legitimate and the €14k is tax free.
But we've gone from evasion - not legitimate - to 'why isn't rent-a-room taxable?' - different topic.
 
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