Online income under 10k per year subject to tax?

Paddyg96

Hi all,

over the last 4 years I have made about 30k through google adsense, which is basically the ads you see before youtube videos and on websites. I have been hosting these on my own websites and channels. I never declared it as I was told I was under the tax threshold.

I started this in school, i got my first job at the end of last year and have since been making 30k a year through that job (and paying taxes on it ofc!) but now I assume I have to declare my online income as I will be over the threshhold?

I've had so much bad advice over the years and just hope I'm not in any trouble with the tax man!

Was I right not to declare for previous years when it was my only form of income and yearly income was about 7/8k?

allthedoyles

people who would class themselves as social media influencers, digital influencers, bloggers, commercial hashtaggers etc. need to let the taxman known if they are engaging in these activities and receiving payment.

https://www.joe.ie/news/thousands-of-irish-people-face-financial-penalties-if-they-fail-to-meet-an-upcoming-tax-deadline-604660

Geuze

Paddyg96 wrote: »

Hi all,

over the last 4 years I have made about 30k through google adsense, which is basically the ads you see before youtube videos and on websites. I have been hosting these on my own websites and channels. I never declared it as I was told I was under the tax threshold.

I started this in school, i got my first job at the end of last year and have since been making 30k a year through that job (and paying taxes on it ofc!) but now I assume I have to declare my online income as I will be over the threshhold?

I've had so much bad advice over the years and just hope I'm not in any trouble with the tax man!

Was I right not to declare for previous years when it was my only form of income and yearly income was about 7/8k?

All income must be declared.

Workers with PAYE income only start paying tax at 16,500.

Workers with non-PAYE income start paying tax earlier.

Calahonda52

Geuze wrote: »

All income must be declared.

Workers with PAYE income only start paying tax at 16,500.

Workers with non-PAYE income start paying tax earlier.

OP:
You get a personal tax credit of 1,650
the basic rate of tax is 20% so if you earned more than 8,250 pa before you started work, then you are liable for tax.
The 8,250 comes from 1650/20%
The 16,500 comes from 3300/20% as you get a PAYE allowance, also = to 1650
https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx

Stratvs

Geuze wrote: »

All income must be declared.

Workers with PAYE income only start paying tax at 16,500.

Workers with non-PAYE income start paying tax earlier.

Calahonda52 wrote: »

OP:
You get a personal tax credit of 1,650
the basic rate of tax is 20% so if you earned more than 8,250 pa before you started work, then you are liable for tax.
The 8,250 comes from 1650/20%
The 16,500 comes from 3300/20% as you get a PAYE allowance, also = to 1650
https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx

Before PAYE started, if the only income is self-employment then the earned income credit might also come into play increasing the amount which could be earned before tax kicks in.

loyatemu

Stratvs wrote: »

Before PAYE started, if the only income is self-employment then the earned income credit might also come into play increasing the amount which could be earned before tax kicks in.

bear in mind that credit only came into being a couple of years ago.

OP - talk to Revenue, you can pay anything you owe from the previous years (it won't be much by the sounds of things), they're generally pretty helpful.

Buck2London

Hey OP, you've been badly advised, you should have been filing Form 11's all those years. From the sound of it, you won't have a tax bill, but you will have to pay PRSI of €500 for each year. I don't know exactly when you started, but you could have to pay the €500 PRSI and a €50 late filing surcharge for 2015,2016 & 2017, just the €500 PRSI for 2018, if you file on time before the end of October, and €500 peliminary tax for 2019, so €2,650 total or something like that.
Next year you'll be paying more on the extra income because on top of PRSI you'll pay USC on it and it will push you into the higher (40%) tax bracket and all your tax credits will be used up by your employment income. You should make an appointment with a local accountant to get this sorted for you, try to get one who'll show you how to fill out the Form 11 yourself for future years, there's not much to it but you'd want someone who knows what they're doing to show you how, as mistakes can be expensive.
On the plus side, it's in your interest to get this sorted as it should give you 4 years of fully paid PRSI credits, which will help you out down the line when you're applying for a pension and stuff.