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How to tax my blog's income

  • 03-11-2014 10:59am
    #1
    Registered Users, Registered Users 2 Posts: 3


    Hi, I moved to Ireland last year and looking for advise on taxation.

    I am a non-EU national, employed full-time (40K+ a year). Recently I launched a blog which started to make 2-4k per month, but I also have costs (1-2k per month to advertise it).

    If I understand correctly, using sole trader solution (given my higher tax bucket) I would have to pay around 50-52% off my income which makes it unprofitable.

    Limited company is taxed at 12,5%, my question is how do clear my ltd company's income into my personal account? Is there another tax and if so which?

    Thanks for all helpful comments,
    Tom


Comments

  • Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    Pay an accountant?


  • Registered Users, Registered Users 2 Posts: 9,223 ✭✭✭Tow


    tomde wrote: »
    Limited company is taxed at 12,5%, my question is how do clear my ltd company's income into my personal account? Is there another tax and if so which?

    You can use your internet banking to move the company money into your personal account, but then have to pay the 50-52% tax on it!

    When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?



  • Registered Users, Registered Users 2 Posts: 3 tomde


    Tow wrote: »
    You can use your internet banking to move the company money into your personal account, but then have to pay the 50-52% tax on it!

    Thanks! Is there any other formation which could let me stay profitable?


  • Registered Users, Registered Users 2 Posts: 90 ✭✭Gard1


    tomde wrote: »
    Hi, I moved to Ireland last year and looking for advise on taxation.

    I am a non-EU national, employed full-time (40K+ a year). Recently I launched a blog which started to make 2-4k per month, but I also have costs (1-2k per month to advertise it).

    If I understand correctly, using sole trader solution (given my higher tax bucket) I would have to pay around 50-52% off my income which makes it unprofitable.

    Limited company is taxed at 12,5%, my question is how do clear my ltd company's income into my personal account? Is there another tax and if so which?

    Thanks for all helpful comments,
    Tom

    you only pay the 52% on your net profit ie 4k less 2k costs = 2k meaning tax at aprox 1k still leaving you up 1k

    Ltd company is an option but better go with sole trader until it develops unless you need the limited liability to protect you personally from liable proceedings if someone sues the blog


  • Registered Users, Registered Users 2 Posts: 3 tomde


    Thank you, so there's no cheaper (legal) options then?


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  • Registered Users, Registered Users 2 Posts: 90 ✭✭Gard1


    tomde wrote: »
    Thank you, so there's no cheaper (legal) options then?

    A lot of this also depends on your status single married if married what income has your partner.

    Ltd co will attract corporation tax at 12.5% if you don't need the money to live on then you can leave it in the company it will only attract the high tax rate if you take money back out in a salary


  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    tomde wrote: »
    Hi, I moved to Ireland last year and looking for advise on taxation.

    I am a non-EU national, employed full-time (40K+ a year). Recently I launched a blog which started to make 2-4k per month, but I also have costs (1-2k per month to advertise it).

    If I understand correctly, using sole trader solution (given my higher tax bucket) I would have to pay around 50-52% off my income which makes it unprofitable.

    Limited company is taxed at 12,5%, my question is how do clear my ltd company's income into my personal account? Is there another tax and if so which?

    Thanks for all helpful comments,
    Tom

    As a soletrader you would be paying 51/52% of your profit (income - expenses).

    You may be able to attribute some extra expenses to your sole trade and I would advise talking to an accountant about this.

    Also I would consider whether contributing to a pension for tax relief may be a good way to reduce your tax exposure.


  • Registered Users, Registered Users 2 Posts: 2,200 ✭✭✭Arbiter of Good Taste


    Gard1 wrote: »
    A lot of this also depends on your status single married if married what income has your partner.

    Ltd co will attract corporation tax at 12.5% if you don't need the money to live on then you can leave it in the company it will only attract the high tax rate if you take money back out in a salary

    Except that it will be a close company, so potential close company surcharge if he doesn't take enough out as salary or dividend.


  • Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    Except that it will be a close company, so potential close company surcharge if he doesn't take enough out as salary or dividend.

    Except that the close company surcharge applies to investment and estate income, and this will be a trading company. He'll be a long time accumulating enough profit to be worried about close co surcharge on the interest...

    Unless you're talking about the professional services company surcharge, which also obviously won't apply, as the company won't be carrying on a profession or a professional service.


  • Registered Users, Registered Users 2 Posts: 2,200 ✭✭✭Arbiter of Good Taste


    Except that the close company surcharge applies to investment and estate income, and this will be a trading company. He'll be a long time accumulating enough profit to be worried about close co surcharge on the interest...

    Unless you're talking about the professional services company surcharge, which also obviously won't apply, as the company won't be carrying on a profession or a professional service.

    Good point. It's a while since I worked with small companies so am rusty

    OP example of why you should get proper advice rather than relying in internet randomers.


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  • Registered Users, Registered Users 2 Posts: 11 WinnerLAD


    Fly to Gibralter/Malta/Isle of Man and register a business?


  • Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    WinnerLAD wrote: »
    Fly to Gibralter/Malta/Isle of Man and register a business?

    Unless he plans on flying there every time he blogs this is a silly idea. Registering a thing somewhere doesn't mean that's where it happens.


  • Closed Accounts Posts: 5,857 ✭✭✭professore


    If you make 2k a month profit and pay 1k tax / USC etc that still leaves you with 1k net? Not bad for a side earner.


  • Registered Users, Registered Users 2 Posts: 1,062 ✭✭✭Dixie Chick


    I wonder does the blog count as an artistic income- and he could get exemptions
    http://www.revenue.ie/en/tax/it/reliefs/artists-exemption.html


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