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Self Assessment Tax

  • 14-06-2019 7:22am
    #1
    Alan3002
    Registered Users, Registered Users 2 Posts: 181 ✭✭


    Hi guys,


    I currently work a full time job as a PAYE employee. I also have a hobby website I run. Two months ago I got approached by an ad revenue company (American) and we joined together. I'm currently making roughly $1400-$2000+ per month with them through my hobby website.

    As I understand it, I'll have to fill out a self assessment form at the start of the new year?


    I've also been told by a friend that 50% of my earning from the website will be taxed but I can possibly put expenses against it to reduce this 50%.


    Is this also correct? 50% seems rather high but I'm absolutely clueless on this stuff and it's all very new to me.


Comments

  • #2
    dennyk
    Registered Users, Registered Users 2 Posts: 1,783 ✭✭✭dennyk


    Yes, if you're making that much, unless your expenses are quite high you'll likely be required to file an income tax return; it's required if you make more than €5000 taxable non-PAYE income. Revenue have all the details on the process at this site:

    https://www.revenue.ie/en/self-assessment-and-self-employment/guide-to-self-assessment/index.aspx

    The tax you'll owe depends on how much you make in total, including in your regular job. You would need to pay income tax and USC on your net self-employment income at your marginal rate, so if you're in the top income tax bracket, that'll likely be 40% income tax and 4.5% USC (or 8% USC on any income over €70k). You'll also need to pay Class S PRSI on your net self-employment income at a rate of 4%, with a minimum payment of €500.

    You can make deductions for certain expenses connected to your business. Again, Revenue have the details on their site:

    https://www.revenue.ie/en/starting-a-business/claiming-a-deduction-for-expenses/index.aspx

    It would probably be worth your while to consult with an accountant, at least to begin with; they can help you with the process and also help you figure out how to minimise your tax liabilities and claim all of the deductions and credits you're entitled to.


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