Renting out a room can boost your income but only if you stay within the rules

Renting a room or rooms in your home to tenants while you are living there is a useful way for people to defray the cost of their mortgage. And, as long as you meet certain criteria, it can be tax free.Primary among these is the limit on how much you can earn. That limit is, as you say, €14,000 and it is absolute. Go to €14,001, and not only will you be taxed on the extra €1, you’ll be taxed on the whole €14,001.

Utilities, if charged over and above rent, are not the only things that have to be considered in calculating whether you meet the €14,000 tax-free threshold; the same is true if you are charging for food, laundry, cleaning or any similar household service. It is worth being aware that, under the rules of the scheme, you do not necessarily have to be the owner of the property to claim tax relief. Assuming a tenant has the landlord’s agreement to sublet, they can avail of the scheme too, but not if they are accepting tenants under the Housing Assistance Programme . In that case, only the homeowner can avail of the scheme.

As you say, in our housing crisis, encouraging people to rent out rooms in their homes – especially those empty nesters, whose children have been reared and moved out of the family home to their own places – is one way of trying to help people in need of housing. Only last week, there was a call-out online for anyone who could provide a room for a doctor arriving into the State to help with our separate healthcare crisis.

IrishTimes You can't even find a room to rent anymore in Ireland this is fake news.

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