Wednesday 25 April 2018

Budget boost for those who want to rent out a room to earn extra cash

(Stock image)
(Stock image)
Ailish O'Hora

Ailish O'Hora

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.

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