The Sharing Economy

Many people supplement their income by selling goods or services through the Sharing Economy in their spare time – for example renting out a spare room on Airbnb or delivering food with Deliveroo.

However, even if this isn't your main source of income, it is still taxable and you will need to declare it to Revenue.

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 2022, you will need to pay tax on that income by 31 October 2023.

Income from providing short term guest accommodation - Case I 'trading' income and Case IV 'miscellaneous' income

You may have income from providing accommodation to occasional visitors for short periods. For example, you may provide the accommodation through an online accommodation booking site such as Airbnb.

This income is not considered to be rental income. This is because the visitors use the accommodation as guests, rather than as tenants.

Airbnb is one of the most popular options for Irish people who are looking to make some extra cash. But 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.

However, the frequency of bookings does make a difference to the type of tax you'll have to pay - either Case I 'trading' income or Case IV 'miscellaneous' income.

Revenue will likely consider your income as Case I 'trading' if:

• you rent out the room or property on 6 or more occasions annually
• or you host for 30 or more nights in a year
• or your Airbnb income exceeds €5,000 in a year
• or the property is available for occupancy all the time

If your Airbnb business falls under Case I 'trading' then you'll need to file a Form 11 tax return each year. Meanwhile, if your Airbnb income falls under the Case IV 'miscellaneous' category, Form 12 is the correct one to use.

Similarly, if you advertise your cleaning skills on hassle.com or pet minding services on housemydog.com, the income you earn is not taxed through the PAYE system. Therefore you'll be required to file either a Form 11 or Form 12 tax return (depending on whether you have earned more or less than €5,000 in the year).