The Sharing Economy

If you earn money through the sharing economy – for example by renting out a spare room on Airbnb or delivering food with Deliveroo.- you will need to declare this revenue for tax even if it is not your main source of income.

Your tax obligations will differ depending on whether you have earned more or less than €5,000 in a year.

If your taxable income is more than €5,000 or your gross non-PAYE income is over €30,000 a year you will need to register as a self-assessed individual with Revenue by completing a TR1 form (you will only need to do this once). You'll then need to file a Form 11 tax return and make a tax payment by 31 October each year for the previous year's earnings.

If your taxable income is less than €5,000 a year and your gross non-PAYE income is less than €30,000, Form 12 is the correct option to file. Similarly to Form 11, your earnings from the previous year will be relevant when completing a Form 12.

So if you started delivering food for Deliveroo in 2020, you'll need to pay tax on that income by 31 October 2021.

If you have income from providing accommodation to occasional visitors for short periods. For example - you may provide the accommodation through an online accommodation booking site.

This income is not considered rental income. This is because the visitors use the accommodation as guests, rather than as tenants. Income from providing short term guest accommodation is taxable as either other income where the income is occasional in nature or as trading income where you are trading as an ongoing business, such as a bed and breakfast or a guesthouse.

Again, you must declare this income to Revenue under the appropriate category using either Form 12 or Form 11.