Content creator 18 year old - taxation?

xboxdad

Hi everyone,

I've an 18 year old teenager and it seems he's going to earn money from YouTube. He's just starting out, so I expect him to be below the exemption limit for income tax and USC for now, but AFAIK will be liable to pay PRSI anyways.

What's the simplest way to deal with this please?

Does he need to be a sole trader or just register for income tax as an individual somehow?

He's in secondary school still and didn't have anything to do with Revenue or taxation previously.

I just registered him on Revenue MyAccount, that's as far as I got :)

Thank you.

Mrs OBumble

Will his profit ie revenue minus expenditure, be more than €5000? If so, then he needs to register as a sole trader. If not,then just declare in My Account.

If his revenue is anywhere near €37,000 then he needs to get an accountant - one who understands online revenue streams at that.

McCrack

Your sons and adult and should be figuring these things out for himself to enable him become independent and capable in life.

listermint

https://www.boards.ie/discussion/comment/121492191#Comment_121492191

Superb input.. .. ..

xboxdad

https://www.boards.ie/discussion/comment/121492191#Comment_121492191

Fair point.. ..but for now I see it as he's the artist and I'm the manager :)

xboxdad

https://www.boards.ie/discussion/comment/121492135#Comment_121492135

Thank you. Not likely to exceed 5k for now. I read about this 5k limit earlier, but I thought they said it's for cases when you're a PAYE employee and you have <5k non-PAYE income to declare. So does he not need to be on PAYE somewhere else for this to work please?

Ninthlife

As the non PAYE income is below 5k net he is deemed a non chargeable person for income tax.

relax carry on

https://www.boards.ie/discussion/comment/121492243#Comment_121492243

You are correct. If he has no PAYE income and all his income is non PAYE, the 5000 euro limit doesn't apply. He would need to file form 11 tax returns each year as it cant be done through Revenues myaccount.

downtheroad

https://www.boards.ie/discussion/comment/121492135#Comment_121492135

Wrong . If his only income is from self employed then he must register for self assessment income tax, regardless of the €5k threshold.

Sono

https://www.boards.ie/discussion/comment/121492191#Comment_121492191

What a reply! This site man…

tbh OP I’d be less worried about revenue and more about where this income is going to come from exactly?

You can’t just upload a video to YouTube and earn money! You don’t even make ad revenue anymore unless you’re a partner— which has min requirements but is very hard to get into. I know loads of creators from my days who took upwards of 17 applications before being accepted!

I think your son would be better to focus on his leaving cert and do the YouTube thing as a side gig. Unless he live streams and people donate there’s no money to be made starting the whole thing.

It took me 8 months before I earned my first €5! 🤣 14 months before I reached threshold for a twitch payout. Averaging about 60~ viewers per stream.

I could not have survived a day on the money I made in a month. So yeah you won’t have to worry about tax right now. You are getting way ahead!

Mrs OBumble

https://www.boards.ie/discussion/comment/121492866#Comment_121492866

Thank you, I didn't know that.

But I'm sure an 18 year old could easily pick up a PAYE job for a couple of weeks to avoid the hassle.