Budget boost for those who want to rent out a room to earn extra cash
Published 11/10/2016 | 08:37
Budget 2017 includes a boost for those who want to earn extra money by renting out a room in their home.
The Government has increased the tax free rental allowance under the 'rent a room scheme' to €14,000 per annum.
Currently you can rent out a spare room in your house tax free if the income does not exceed €12,000 a year.
However, above the tax free threshold, any income earned is treated in the same way as other rental income and, as a result, tax is charged at your marginal rate.
It's important to remember that this exemption does not apply to short-term lets like Airbnb under Revenue rules.