Revenue has published a manual that provides guidance on how income from social-media and promotional activities may be taxed.
Revenue says that the document gives an overview of how such income will be treated for tax purposes, as well as setting out the tax-compliance obligations of people engaged in such activities.
Revenue points out that income derived from social-media or promotional activities is chargeable to tax, “even in circumstances where the activity is conducted on a casual basis only and is not the individual’s or company’s main business or main source of income”.
The manual says that the taxation of this type of income is based on an application of ordinary tax rules.
It covers activities carried out by a person through a sole trade, a company, or a partnership.
Expenses
The manual Part 04-01-22 covers activities that include, but are not limited to:
- Content-creation and associated activities on social-media platforms, such as posting videos and other content, delivering tutorials, presentations, masterclasses, and podcasts,
- Creating content for subscription-based social-media platforms,
- Blogging and vlogging,
- Promoting or reviewing products, goods, and services,
- Sponsorship and endorsement fees,
- Endorsing products or businesses in return for fees, goods, or services,
- Brand ambassadorships in return for fees, goods, or services,
- Featuring in business marketing material,
- Making live or recorded public appearances, and
- Appearance or performance fees.
The manual provides several examples of how individuals involved in social-media or promotional activities should report income from such activities and how it would be treated under the income-tax or corporation-tax rules.
It also provides an overview of what types of expenses may be deductible for tax purposes, pointing out that clothing or grooming expenses are generally not deductible, while Revenue may allow some travel expenses to be claimed – but only the portion that relates to business usage.