Unearned income: is my father-in-law's household contribution taxable?

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AvidIrishReader

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My father-in-law, who is a foreign citizen from Britain, maintains his banking and pension in England. Since he has been living with us here in Ireland, he does monthly transfer to cover his contribution towards household expenses, including his Sky Sports subscription. This simply shows up on our bank statements as a credit from NAMED PERSON.

Would Revenue treat this as unearned income - and therefore liable for tax - or is it treated differently? (I'm hesitant about asking Revenue in the first instance in case I open a can of worms.)

I'm beginning to think that he should have just taken cash out of the machine and given it to us.
 
AvidIrishReader said:
My father-in-law, who is a foreign citizen from Britain, maintains his banking and pension in England. Since he has been living with us here in Ireland, he does monthly transfer to cover his contribution towards household expenses, including his Sky Sports subscription. This simply shows up on our bank statements as a credit from NAMED PERSON.

Would Revenue treat this as unearned income - and therefore liable for tax - or is it treated differently? (I'm hesitant about asking Revenue in the first instance in case I open a can of worms.)

I'm beginning to think that he should have just taken cash out of the machine and given it to us.
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Revenue would have absolutely no interest in this.
 
AvidIrishReader said:
Would Revenue treat this as unearned income - and therefore liable for tax - or is it treated differently?
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Household expenses for a family member would not go on their radar.

I'm no expert on this, but he may need to check the tax implications of having a UK pension and now being resident in Ireland.

It is extremely common though so should be easy to find answers.
 
His UK pension would. possibly, not be taxable in the UK, but would be in Ireland - although there could a delay before it is not taxable in the UK

The tax position will depend on the nature of the pension and its source
 
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jpd said:
His UK pension would not be taxable in the UK, but would be in Ireland - although there could a delay before it is not taxable in the UK
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If he's over 65, he should be exempt from income tax on the first €18k of income and effectively tax-free here too.
 
Wouldn’t revenue has a concern if there was a monthly set amount arriving each month into the OPs bank account ? Leaving themselves exposed too explaining the source of funds and the reason it’s a monthly thing.
 
AvidIrishReader said:
My father-in-law, who is a foreign citizen from Britain, maintains his banking and pension in England. Since he has been living with us here in Ireland, he does monthly transfer to cover his contribution towards household expenses, including his Sky Sports subscription. This simply shows up on our bank statements as a credit from NAMED PERSON.

Would Revenue treat this as unearned income - and therefore liable for tax - or is it treated differently? (I'm hesitant about asking Revenue in the first instance in case I open a can of worms.)

I'm beginning to think that he should have just taken cash out of the machine and given it to us.
Click to expand...
No - he is making a contribution to the bills so revenue would not regard it as income.
 
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