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Sole trader

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  • 06-05-2014 12:12pm
    #1
    teddyboy
    Registered Users Posts: 86 ✭✭


    Hi

    Can I have a employee work for free in my business if I'm a sole trader?

    Can I have be a sole trader of two businesses?


Comments

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    #2
    teddyboy
    Registered Users Posts: 86 ✭✭teddyboy


    No one?


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    #3
    NipNip
    Banned (with Prison Access) Posts: 656 ✭✭✭NipNip


    What do you mean 'work for free' specifically? Have you someone who is willing to work for free? They can't work for you for free and claim social welfare, if that's what you mean?

    Not sure about your second question. It's a type of company rather than a reflection on the fact that it is your 'sole' occupation. I can't see why you couldn't have two different companies. I know there are limitations on the amount of directorships individuals can hold. I'm not aware of any similar limitations on sole traders. Perhaps someone else could clarify.


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    #4
    nompere
    Registered Users Posts: 1,678 ✭✭✭nompere


    There's nothing to stop you having a number of different businesses.

    The profits for each will be added together for income tax purposes.

    If Revenue think you're trying to manipulate the system so that each business is below the VAT threshold then they will group them and just one VAT threshold will apply to them all.


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    #5
    Gloomtastic!
    Registered Users Posts: 8,485 ✭✭✭Gloomtastic!


    You may wish to consider employers liability insurance. Even if they are working for you for free, you are still responsible for them.


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    #6
    lucky john
    Registered Users Posts: 838 ✭✭✭lucky john


    teddyboy wrote: »
    Hi

    Can I have a employee work for free in my business if I'm a sole trader?

    Can I have be a sole trader of two businesses?

    "Work for free" is interesting and I'm not sure you can unless you have a slave. You call them an employee so you will have to register as an employer and submit p30. Revenue will have questions when you submit 0 for their wage. As far as I know unless they are on one of the government schemes they are entitled to the national minimum wage. They can't sign away that right to you either so they are entitled to holiday pay, a contract, hours directive, over time ect.
    Of course, as a sole trader you can work 100 hours a week for nothing with 0 rights and no one will care.


    You can have more than one business as a sole trader. You can have "joe blogs t/a (trading as) business name" several times. As someone mentioned vat, tax ect comes back to joe blogs so you can't try and beat the system. Your accountant can seperate out each individual business when doing your accounts for management purposes but only submit one tax return (which saves you on his fees).


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    #7
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    http://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/pay_and_employment/pay_inc_min_wage.html


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    #8
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    lucky john wrote: »
    "Work for free" is interesting and I'm not sure you can unless you have a slave. You call them an employee so you will have to register as an employer and submit p30. Revenue will have questions when you submit 0 for their wage. As far as I know unless they are on one of the government schemes they are entitled to the national minimum wage. They can't sign away that right to you either so they are entitled to holiday pay, a contract, hours directive, over time ect.
    Of course, as a sole trader you can work 100 hours a week for nothing with 0 rights and no one will care.

    You can have more than one business as a sole trader. You can have "joe blogs t/a (trading as) business name" several times. As someone mentioned vat, tax ect comes back to joe blogs so you can't try and beat the system. Your accountant can seperate out each individual business when doing your accounts for management purposes but only submit one tax return (which saves you on his fees).

    Agreed. The OP needs to define what is the relationship between him and the other person...

    A person is classed as an employee if s/he is working under a contract of employment, which does not have to be in writing as it exists when you and your employer agree terms and conditions of employment.

    A person is classed as a worker if s/he is an individual who works for an employer, whether under a contract of employment or not or under any other contract. (Typical workers are agency staff). Workers are entitled to core employment rights and protections

    A person is classed as ‘self-employed’ if s/he is contracted to provide services over a certain period of time. They too have some legal protection – e.g. not discriminated against, entitlement to a safe and healthy working environment , etc.

    So you take someone on without being careful and you can be hit for minimum wage, maternity benefits, etc. not to mention a legal case for a 'sore back' and you with no Employer's liability insurance as mentioned above.


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    #9
    teddyboy
    Registered Users Posts: 86 ✭✭teddyboy


    What if they volunteer to work in your profitable business to get experience?

    This person would be volunteering in my business and getting paid no money except food. Do I have to pay tax on the food I give her as payment?

    If I was to give other presents such as a plane ticket would I have to declare it?

    The person is not receiving welfare in this country or any other


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    #10
    NipNip
    Banned (with Prison Access) Posts: 656 ✭✭✭NipNip


    teddyboy wrote: »
    What if they volunteer to work in your profitable business to get experience?

    This person would be volunteering in my business and getting paid no money except food. Do I have to pay tax on the food I give her as payment?

    If I was to give other presents such as a plane ticket would I have to declare it?

    The person is not receiving welfare in this country or any other

    Where will they live?


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    #11
    teddyboy
    Registered Users Posts: 86 ✭✭teddyboy


    NipNip wrote: »
    Where will they live?


    They have saving from working abroad. They have a house as well


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    #12
    NipNip
    Banned (with Prison Access) Posts: 656 ✭✭✭NipNip


    teddyboy wrote: »
    They have saving from working abroad. They have a house as well

    I'm not sure that what you are proposing would be compliant with current employment legislation.
    Will they have a Visa to work here?
    'Volunteering' in a business sense, refers to work for not-for-profit organisations only as far as I know (I stand to be corrected on that though).
    Technically, this person, will be your employee. You will need to pay their PRSI at the very least as far as I know?
    I think it is illegal to pay below the minimum wage.
    The person would not be entitled to avail of jobbridge or any other scheme available to employers/employees currently.


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    #13
    teddyboy
    Registered Users Posts: 86 ✭✭teddyboy


    NipNip wrote: »
    I'm not sure that what you are proposing would be compliant with current employment legislation.
    Will they have a Visa to work here?
    'Volunteering' in a business sense, refers to work for not-for-profit organisations only as far as I know (I stand to be corrected on that though).
    Technically, this person, will be your employee. You will need to pay their PRSI at the very least as far as I know?
    I think it is illegal to pay below the minimum wage.
    The person would not be entitled to avail of jobbridge or any other scheme available to employers/employees currently.

    No the person is irish and does not want to be on jobbridge. Why pay PRSI if they are not earning? It would only be for 104 days?


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    #14
    NipNip
    Banned (with Prison Access) Posts: 656 ✭✭✭NipNip


    teddyboy wrote: »
    No the person is irish and does not want to be on jobbridge. Why pay PRSI if they are not earning? It would only be for 104 days?

    Well I don't know. Sounds like a strange set up. Don't know enough about the ins and outs of the whole lot to offer any advice, sorry.


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