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Tax Requirements for Bloggers and Influencers
Currently, there’s a lot of discussion about the need for Irish bloggers and influencers to disclose commercial relationships so as to comply with consumer law. Equally important, although it hasn’t had the same media attention, is the need to comply with tax legislation.
Bloggers and influencers have the same tax obligations as any other business person
If your blog or social media activity makes money, Revenue view this as part of your total income and therefore taxable.
Typical sources of blogging income include:
Sponsorship or advertising income
Affiliate links (where you earn commission on items bought on your site)
Non-financial benefits such as free products or services
Income Tax and Self Assessment
The most common form of Income Tax in Ireland is PAYE. This is where an employee’s Income Tax and Universal Social Charge are deducted by their employer.
For most bloggers, however, the income they receive from blogging or social media activity is usually non-PAYE income. Under Irish tax law, this is taxed through self-assessment using the ‘Pay and File’ system.To comply with the rules, by 31 October each year, self-assessed taxpayers must file a tax return for the previous year. You then pay any balance of tax due for the previous year along with preliminary tax for the current year. The amount of tax that you have to pay will depend on your income and circumstances. For example, you may be eligible to claim certain tax reliefs and/or you may be able to offset certain blogging-related expenses against your blogging income. However, there are strict rules about what can be claimed. You will find information on the Revenue website but, if you are in any doubt, it is a good idea to take professional advice. Failure to pay what is due can result in fines and/or a Revenue audit.
Brady & Associates offers a €350 tax return service which provides peace of mind and could save you money. Contact us today to find out more about how we can help.
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