Low uptake of €500 rental tax credit questioned

The low uptake of a rental tax credit, announced in last year’s Budget, has been questioned by opposition TDs.

Under the scheme, a single person who is renting is eligible to receive €500 a year from Revenue, while a couple who are renting are eligible to receive €1,000. 

Data obtained by RTÉ News has shown that out of the 400,000 eligible recipients of the scheme, only 230,000 have applied since it was announced in last October’s budget.

Critics of the scheme have noted that the scheme is only available to renters if their landlord is registered with the Residental Tenancies Board, and there is a general lack of awareness surrounding the scheme.

The sluggish uptake of the tax credit among eligible renters has been criticised by opposition TDs.

Social Democrats TD and party spokesperson on housing, Cian O’Callaghan, said that the low uptake was flagged as soon as January and has criticised the Government not clearly 

communicating the scheme.

“The low uptake was first flagged as far back as January when a survey by Taxback.com revealed a widespread lack of public awareness about renters’ entitlement to the credit. At the time, I called for the Government to launch an information campaign to encourage more people to apply. It is deeply disappointing that this has yet to happen.”

“It is also clear that many renters cannot claim the tax credit because their landlord is not registered with the RTB. This is financially penalising the renter for the failure of the landlord and highlights the need for urgent reform in how the scheme operates.”

“With exorbitant rents putting families and individuals under severe financial pressure, it is important that as many people as possible avail of this relief,” the Dublin Bay North TD added.

Labour leader Ivana Bacik also took the Government to task over the low uptake, saying that it “exposes the shallowness of Government schemes which are mooted as panaceas for renters.”

“The Government was highly self-congratulatory about this scheme,” the Dublin Bay South TD said.

“The Minister should not infer from the low uptake that renters do not need a dig out; let there be no doubt, renters are suffering.”

Marian Ryan, Director of Business Development with Taxback.com, said on Morning Ireland that renters were “fearful” of approaching the topic with their landlord, for fear of having their rent increased.

“Many landlords are simply not registered with the RTB and are not willing to do so and that means many people are missing out on the refund.”

Requests can currently be made for 2022 and 2023, while the scheme is currently due to continue until 2025.

Further information on the rent credit tax relief scheme is available at revenue.ie.