Those letting out a room in your home on Airbnb and other similar sites need to be aware that as far as Revenue is concerned, they are running a small business, and any income generated from renting out spare rooms is liable for tax.

This follows on from Revenue’s clarification of “Rent-a Room relief” to specifically exclude short-term lets to guests, “including where such accommodation is provided through online accommodation booking sites”, from the relief.

The Rent-a-Room scheme, which was first introduced in 2002, allows people to receive gross income (including monies for food, laundry or similar goods and services) of up to €12,000 in a tax year without it being liable to income tax, PRSI or the USC.

Penalties and interest on undisclosed tax liabilities can be significant so we recommend that if this applies to you, you should register for Income Tax without delay.  Further information from Jane or Hilary 091 745512