The blogger/influencer scene has grown quickly in Ireland, with personalities such as Suzanne Jackson, Roz Purcell, James Kavanagh and Pippa O’Connor gaining huge social media followings.
However, bloggers and influencers were put under the microscope this year regarding their content and overall transparency.
With more focus on this industry than ever before, here’s everything up and coming and established bloggers need to know about tax:
How do I know if I need to pay tax?
If you earn any payment as a blogger or influencer, this is considered taxable income. Whether this income comes from sponsored content, ads, talks, workshops etc, you have to pay tax.
Do I have to pay tax on gifts I receive?
Non monetary benefits are also taxable. If brands supply you with benefits, services or gifts in return for your endorsement, these are taxable.
When you are sent gifts with no obligation to review the item, it is not payment, it is a gift. However, if you are gifted items/services valued over €3,000 by a single entity are in a tax year, these are also taxable.
What if I earn below €5,000?
If what you earn outside of PAYE is under €5,000 and the gross amount before expenses is under €30,000, you need to simply contact Revenue to get your tax credit in order so that your tax is collected via the PAYE system.
What if I earn above €5,000?
If you earn €5,000 net or €30,000 plus gross total outside of PAYE you need to register for income tax. You may need to register for VAT also. This can all be done using a TRI Form, which is the form sole traders use to register for tax.
Can I claim expenses?
Yes – you can claim expenses for items requires for your blogging/influencing, such as travel, wifi, stationary etc.
What happens if I don’t pay tax?
If you are caught not paying your tax, you could receive anything from a warning to a prosecution for tax evasion.
TOP TAX TIPS
In the blogger/influencer industry, income comes in many forms. It is important to report all income, whether it is in cash, services, or products.
When you receive your income, put some of it aside for taxes
It is easy to underestimate how much tax you must pay. Avoid the panic, and separate money to pay your taxes from your income each time you receive it.
Be aware of expenses
Make sure you’re aware of all of the things you can claim as expenses for your blog.
Keep track of your income/expenses
Hold onto receipts and financial records and organise them regularly – this will save a lot of time and effort when it comes to paying your taxes.
Contact an accountant for help and advice
It’s better to be safe than sorry when it comes to paying taxes – paying more than you should is frustrating, and paying less than you should has consequences. Make sure you are getting your taxes right by contacting an accountant who advise and help you with figuring out your taxes.
If you have any questions, contact the Kenocon team today.