Affiliate income tax

The Irish Riddler

A friend runs a blog that gets a lot of visitors.

He currently receives no revenue from his blog.

If he were to advertise a gambling site this gambling site would pay him for each person he refers to them.



How would he be taxed on this income?

The Irish Riddler

Bumping this.

srsly78

Same as any other non-paye income.

The Irish Riddler

srsly78 wrote: »

Same as any other non-paye income.

can you be more specific? USC? income tax?

also, would he have to register for vat if he makes over a certain amount?

assuming he makes E50k/year how would he be taxed?

The Irish Riddler

Is this not straight forward? Does it depend on other factors?

srsly78

See sticky at top of page, read guide for self employed people. Nothing special for affiliate income, it would be treated as any other self employment income.

Tow

As per srsly78 reply, the same as any other non-paye income.

eg. He makes 50k from his day job, 50k (income less expenses) from the blog, he pays Income Tax, PRSI (Class S1) and USC on 100K. As all his allowance will probably be used up in the day job he will pay 41+4+7= 52% tax on his blogs 50k.

sonyvision

My advice, if hes thinking of doing this is go about setting up a company and have the blog signed over to the company, tax for companys is only 12.5% werenormal self income can be 41% plus have the bonus of limited liability if he racked up huge debt.

Setting a company up sounds hard but is quite easily, you can buy off the shelf companys at a small fee, only catch is as the company owner and director you would be required to keep up to date will all fillings, accountants can do this but at a price.....

srsly78

Sony that is terrible advice. He would pay 12.5% tax on company profits, then tax on dividends (this would add up to over 41% effective coz of double taxation). Alternatively he could not make a company profit, and pay the money to himself as wages = exactly the same tax as any other income!

So don't bother with a company unless there is a lot of money involved. Just read up on self-assessed income.

The Irish Riddler

Thanks folks.

The Irish Riddler

Would he have to pay vat on this income?

jwilco

Yes at 23% if his site is an Irish Domain website