{"id":13531,"date":"2024-12-17T11:59:06","date_gmt":"2024-12-17T09:59:06","guid":{"rendered":"https:\/\/seoblog.taxback.com\/?p=13531"},"modified":"2024-12-17T11:59:06","modified_gmt":"2024-12-17T09:59:06","slug":"sharing-economy-tax","status":"publish","type":"post","link":"https:\/\/www.taxback.com\/blog\/sharing-economy-tax\/","title":{"rendered":"Earning extra cash through the sharing economy? Don\u2019t forget to pay tax!"},"content":{"rendered":"

Consultants in PwC say that global sharing revenues could rise to $335bn by 2025.<\/p>\n

Business is booming in Ireland too. Believe it or not, Airbnb alone contributes roughly \u20ac500 million to the Irish economy per year.<\/p>\n

It\u2019s very easy to take part. Thanks to smartphones, setting up is often simple. So whether you want to rent your spare room on Airbnb, advertise your gardening services on Adverts.ie, or use DoneDeal.ie to sell your tools to a DIYer in need, you can find your own space in the sharing economy.<\/p>\n

In truth you can share almost anything \u2013 from your power washer to your bicycle. It\u2019s all about matching those who have it with those who need it and making the most out of underused assets.<\/p>\n\n

Extra cash<\/b><\/h2>\n

\nThe best part is, if you play your cards right, you can potentially make a lot of extra cash. And thousands of people in Ireland already have.
\n<\/b><\/p>\n

If you like being out and about, signing up with Deliveroo to deliver food could be for you. You can work to your own availability, make as much as \u20ac120 in a day, and keep 100% of your tips!<\/p>\n

If you\u2019re looking to put your cleaning skills to good use, you can advertise your services on Hassle.com. You can work where and when you want and earn \u20ac11 per hour.<\/p>\n

Not only can you make money, you can also save it.<\/p>\n

Brides-to-be should consider Rentmydress.ie for their wedding. The online dress rental hub allows women to rent clothes, with wedding dresses available from as little as \u20ac10!\n<\/p>\n

Time for your taxes<\/b><\/b><\/h3>\n

\nBefore you start planning what to do with all the extra dosh you\u2019ve earned from the sharing economy, remember this income is taxable.<\/p>\n

In short, regardless of whether you also have a full-time job, if you earn income from the sharing economy, you\u2019ll need to declare this to Revenue. And yes, you\u2019ll still need to declare the cash you received for your services, even if there\u2019s no record of the transaction.<\/p>\n

Need help filing your tax return? The experts at Taxback are on hand to help you avoid fines or penalties<\/a><\/p>\n

Your tax obligations will differ depending on whether you have earned more or less than \u20ac5000 in a year.<\/p>\n

If you have earned more than \u20ac5000 a year you will need to register as a self-assessed individual with Revenue by completing a TR 1 form (you will only need to do this once). You\u2019ll then need to file a Form 11 tax return and make a tax payment by 31 October each year for the previous year\u2019s earnings.<\/p>\n

Should you earn less than \u20ac5000 a year, Form 12 is the correct option to file. Similarly to Form 11, your earnings from the previous year will be relevant when completing Form 12.<\/p>\n

So if you started delivering food for Deliveroo in 2023, you\u2019ll need to pay tax on that income by 31 October 2024.\n<\/p>\n

Airbnb<\/b><\/b><\/h2>\n

\nAirbnb is one of the most popular options for Irish people looking to make some extra cash.<\/p>\n

However, regardless of the number of times you rent your accommodation to a guest, keep in mind that tax is due to Revenue on all income received.<\/p>\n

The frequency of bookings does make a difference to the type of tax you\u2019ll have to pay – either Case I \u2018trading\u2019 income or Case IV \u2018miscellaneous\u2019 income.<\/p>\n

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