A question on tax

patrickLouth1

I have took up buying and reselling tickets for around a 20% markup nothing too crazy and unfair I have made around €1000 the past 3 months in profit,I'm 17 and do not work ,would I be liable to pay tax on this?Is there a threshold where I would?Really hard to finding info in regards to this anything would be appreciated

gerrybbadd

patrickLouth1 wrote: »

I have took up buying and reselling tickets for around a 20% markup nothing too crazy and unfair I have made around €1000 the past 3 months in profit,I'm 17 and do not work ,would I be liable to pay tax on this?Is there a threshold where I would?Really hard to finding info in regards to this anything would be appreciated

If the earnings are over 5K you have to register as self assessed.

You are providing a service, so VAT comes into the fray if your income goes over €37,500 (though it could be argued your providing a product, and the threshold is then €75K)

patrickLouth1

What's would be the tax after 5000 then ?Only 17 not working otherwise

Geuze

patrickLouth1 wrote: »

I have took up buying and reselling tickets for around a 20% markup nothing too crazy and unfair I have made around €1000 the past 3 months in profit,I'm 17 and do not work ,would I be liable to pay tax on this?Is there a threshold where I would?Really hard to finding info in regards to this anything would be appreciated

Tax credits and tax bands are taught in JC Maths, so you should know all about them.

Everybody gets a basic tax credit of 1,650, so this allows you to earn 1650/0.2 tax free, = 8250.

ScouseMouse

Troll alert. If when the touting legislation comes in, any ideas like this will be banned on the head anyway

patrickLouth1

True I understand this just taught her it was different for this instance ?What would the percent of tax be and if it's over 5000 is just what's over that limit.So of I earn 5500 would 500 only b taxed?

Geuze

There are two income tax rates in Ireland: 20% and 40%.

20% applies up to 34,550.

So if you earned 10,000 self employed profits, the calculation would be:

(10,000)(0.20) = 2,000 gross tax liability, less your tax credits.

2000 tax less the following tax credits:

(1) basic personal tax credit = 1,650
(2) earned income tax credit, up to 1650.

So on 10k profit, your income tax should be ZERO.

Peregrinus

patrickLouth1 wrote: »

True I understand this just taught her it was different for this instance ?What would the percent of tax be and if it's over 5000 is just what's over that limit.So of I earn 5500 would 500 only b taxed?

No.

As already pointed out, you'll have a personal tax credit of 1,650. The way this works is that you calculate tax at 20%, and then subtract your tax credit. If the result is zero or less than zero, then you pay no tax.

So, 5,500 x 20% = 1,100.

1,100 - 1,650 = -550, which is less than zero, so no tax payable.

patrickLouth1

Really appreciate the help cheers

Bubbaclaus

Peregrinus wrote: »

No.

As already pointed out, you'll have a personal tax credit of 1,650. The way this works is that you calculate tax at 20%, and then subtract your tax credit. If the result is zero or less than zero, then you pay no tax.

So, 5,500 x 20% = 1,100.

1,100 - 1,650 = -550, which is less than zero, so no tax payable.

Still needs to be declared via a Form 11 tax return though.