Did you know if the rent received is less than €10,000 per annum it is exempt from Income Tax, PRSI and the Universal Social Contribution?
‘Room’ in this context includes self-contained units which are attached to your home such as basement flats or a converted garage.
The €10,000 limit is the gross amount received before a deduction can be taken for any expenses. Once gross rents received is over €10,000 all of the rent becomes taxable.
Also, your tenant can still claim the rent tax credit.
Rent a Room relief is given to you automatically by Revenue. If you think that you have been paying tax on your rents incorrectly you may be entitled to a refund.
It should be noted that you cannot avail of the Rent a Room relief if you are receiving rent from your child.
If you require any further information about claiming this exemption, please contact us.