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A Simple Guide to Tax!
Most Asked Questions
If you earn over €5000 in freelance income per year, then yes you must register to pay tax.
Register as soon as possible! While you won’t be paying tax straight away, you will eventually and it is best to register sooner rather than later.
This is best done by finding a tax agent (we recommend Nathan Trust).
Your tax agent will get in contact you to get all of the necessary information to make sure you pay the right amount of taxes at the right time.
You need to file your tax return by October 31st of the following year.
So if you have freelance income in 2020, you need to have the tax return for this income filed by October 31st 2021.
You can claim for anything that is directly related to your activity as a freelancer, this can include:
- Vehicle costs
- Protective clothing
- Fuel
- Motor insurance
NOTE: These must be solely related to your activity as a freelancer.
Yes you can, and this is considered a capital allowance. However, this is only recommended for vehicles worth over €15,000 due to the complexity of the paperwork involved.
Yes you can claim for items such as:
- Motor insurance
- Motor tax
- Fuel
- Repairs
However, you can only claim for the portion that is related to your freelancer activity. If 80% of your miles are related to your freelance activity, then you can only claim for 80% of the cost of the above.
Registering Yourself
While working for Gigable or any other gig economy platforms, you must register yourself as a business with Revenue. In this scenario you’ll want to register as a “Sole Trader”.
This means you’ll be now registered for Income Tax & PRSI
You’ll also want to register yourself as a “Sole Trader Business” on the CRO website
Tax & PRSI
Once you register for tax you will receive a “Notice of Registration” confirming that you are registered for income tax, and if applicable, for VAT also.
You must also pay Preliminary Tax (an estimate of tax due) on or before 31 October each year and make a tax return not later than 31 October following the end of the tax year. You must keep proper records of your expenses and Gigable invoices to allow you to fill out your annual tax return properly.
You must also pay Class S PRSI
This is paid at a rate of 4% on all income or a €500 flat rate if you make under €5000 in a year
When earning money with Gigable, its best to open a fresh bank account. We’ll call this your “Tax Bank Account”. Every time you pay yourself. Take the appropriate percentage for tax out and transfer it to your fresh tax bank account. So once your tax is due, you’ll have the lump some ready to send to revenue.
Filing Your Return
Once its close to the end of the tax year and its time to make your tax return. You have two general options.
- File a manual tax return through Revenue
- Get an accountant to do it for you (we recommend Nathan Trust)
Gigable Ltd (UK), Colony CoWork, Jactin House, 24 Hood Street, Manchester, England. M4 6WX. Company number 12400320.
Gigable Ltd (IRL), Dog Patch Labs, Unit 1 CHQ, North Wall Quay, Dublin 1. D01 Y6H7. Company number 631191.
