Given it's a relatively new industry, it's understandable that many Irish bloggers are unclear about the rules when it comes to tax, but with a Revenue crackdown on the horizon, it's important that you understand your obligations as you grow your brand.
Here's a handy breakdown to bookmark as you strive to hit the bigtime:
Any payment a blogger receives from operating is counted as income. This includes:
- Payments for sponsored content
- Banner ads on blogs
- Talks/workshops/seminars you hold where they receive payment(s)
But what about all those lovely freebies? Well, according to Taxback.com, the tax treatment of gifts of goods and services from businesses is a little different.
When bloggers are sent gifts, they are under no actual obligation to review the items. Therefore, it is not payment, but a gift. However, if the value of the gifts (material items, or services) given by a single person/company is more than €3,000 in a tax year, then there is a tax implication and you must pay any tax due.
Bloggers - What you need to do
According to Taxback.com, any payment received is counted by Revenue as income and thus taxable. This includes payments for sponsored content, banner ads on your blog, and income from any seminars or workshops held.
If the total taxable amount you earn outside of PAYE is below €5000 and the total gross amount before the deduction of expenses adds up to less than €30,000 in any given year and you are also a PAYE tax payer, it’s pretty simple; you just contact Revenue, who will arrange to have your tax credit certificate adjusted in order to collect the tax via the PAYE system.
If you earn over €5000 net or €30,000 gross in total outside of the PAYE system then you will need to register for income tax using a TRI Form, which is a tax registration form for sole traders.. If your turnover is over a certain threshold (€37,500 for services or €75,000 for sale of products in a 12 month period under current rules ), then you’ll need to register for VAT on this form too.
As well as completing a TR1, you must file a self-assessed tax return each year stating the income earned. Taxback.com advice: 'Declare everything! Any payment a blogger receives from operating a blog counts as income. The deadline for self-assessed tax returns in Ireland is October 31st so you must make sure you meet this, otherwise you could be subject to fines or penalties.
Self-assessed expenses can include items you need for your blogging business such as stationery, internet, travel to meetings, events.
