Definition of a 'chargeable person' and relevance to airbnb income

tinc

Hi,
I'm looking up how to add income me and my wife have received through airbnb to our tax returns for 2016. We will earn around €3k this year and we file jointly. From what i have seen, it looks like i have to add the €3k down as a 'trade' less any expenses.

The one thing i'm unsure about is the term 'chargeable person'. From Citizens Information i saw that:

"If you have a PAYE source of income and your net assessable non-PAYE income is less than €5,000, and this income is coded against PAYE tax credits or fully taxed at source, you are not regarded as a chargeable person (provided your gross income before expenses does not exceed €50,000)."

So i imagine I (or we?) would fall under this description? Is the airbnb income effectively treated as an extra salary in terms of tax but not PRSI? Or would that income be exempt from tax?

Thanks!

gerrybbadd

tinc wrote: »

Hi,
I'm looking up how to add income me and my wife have received through airbnb to our tax returns for 2016. We will earn around €3k this year and we file jointly. From what i have seen, it looks like i have to add the €3k down as a 'trade' less any expenses.

The one thing i'm unsure about is the term 'chargeable person'. From Citizens Information i saw that:

"If you have a PAYE source of income and your net assessable non-PAYE income is less than €5,000, and this income is coded against PAYE tax credits or fully taxed at source, you are not regarded as a chargeable person (provided your gross income before expenses does not exceed €50,000)."

So i imagine I (or we?) would fall under this description? Is the airbnb income effectively treated as an extra salary in terms of tax but not PRSI? Or would that income be exempt from tax?

Thanks!

AIrB&B income is not exempt from tax

If the income after expenses is less than 5K, you are not obliged to register as self assessed for tax purposes (a chargeable person).

That being said, you still do have to declare the income on a Form 12 tax return, and the underpaid tax will be dealt with under the PAYE System

antdee

Hi,
I am unemployed and have some small earnings from bank deposits and investments, less than €5000 for the year, is there a need to declare anything?
Thanks

gerrybbadd

antdee wrote: »

Hi,
I am unemployed and have some small earnings from bank deposits and investments, less than €5000 for the year, is there a need to declare anything?
Thanks

Yes. You are obliged to declare all incomes to Revenue, even if it is exempt (for example, Rent a room income is exempt up to a certain threshold, but this must still be returned).

So, although you won't pay tax on the income, it must still be declared.

bozd

hi semi-retired friends asked me to help explain how to do this years returns including income , which is small from airbnb. they are both on state pension and are creative folk who run small businesses on the side; however one makes a loss and the other a small profit. the new airbnb was started in 2015 and they want december to be the year end so just a few guests in first year. they are both so by the book that they want it done right from the start.

I only have very basic knowledge and from some reading gather tax isnt due in the first year? but has to be declared ?i dont know really - doing my own tax is as far as my ability strectches - any advice?

thank you in advance