Róisín Shortall
Question:47 Ms Shortall asked the Minister for Finance the method of assessing a person's liability for income tax if they provide board and lodgings for a student for payment of £43 per week. [2867/95]
Written Answers. - Income Tax Liability.
I have been advised by the Revenue Commissioners that income from this source would be normally chargeable to income tax under the self assessment system. The amount which is chargeable is the net profit arising i.e. gross income less expenses which are incurred wholly and exclusively in earning that income. Under the self assessment system the person receiving the income should make a payment of preliminary tax on 1 November each year and also submit a return of income form by 31 January following the end of each tax year involved.
However, in cases where the net profit is not substantial, the taxpayer, if already dealt with under the PAYE system, may at the beginning of the tax year request the inspector of taxes to reduce his-her tax-free allowances by the amount of the profit arising. In this way the additional tax due can be collected through the PAYE system.