self employed

mick121

Mods please move if in the wrong place.could anyone give me a rough idea on this.If I'm self employed and the main contractor gives me say 600e per week,how much of the 600e can he claim back from revenue etc.
Thanks Mick.

Seve OB

mick121 wrote: »

Mods please move if in the wrong place.could anyone give me a rough idea on this.If I'm self employed and the main contractor gives me say 600e per week,how much of the 600e can he claim back from revenue etc.
Thanks Mick.

He can't claim anything back.

mick121

Seve OB wrote:

He can't claim anything back.

I thought if a business payed a sub contractor to do work they could off set the wage/bill against their tax liability as it's seen as an expense

Immy

mick121 wrote: »

I thought if a business payed a sub contractor to do work they could off set the wage/bill against their tax liability as it's seen as an expense

Yes they can, claim it as an expense.

But they don’t claim it back from revenue

mick121

Immy wrote:

But they don’t claim it back from revenue

So would you have any idea what sort of percentage they can reclaim?.what I'm trying to figure out is a rough idea like they actually only end up paying maybe 70c per euro.

vectorvictor

mick121 wrote: »

So would you have any idea what sort of percentage they can reclaim?.what I'm trying to figure out is a rough idea like they actually only end up paying maybe 70c per euro.

It's an expense
Job pays them 100k
They pay subies and materials etc of 80k
20k is their profit and taxable

Your looking for an answer that doesn't really exist, they can't "reclaim" anything.

Their savings with subbies is no employer contributions, annual leave , sick pay etc..

mick121

vectorvictor wrote:

Your looking for an answer that doesn't really exist, they can't "reclaim" anything.

vectorvictor wrote:

It's an expense Job pays them 100k They pay subies and materials etc of 80k 20k is their profit and taxable

vectorvictor wrote:

Their savings with subbies is no employer contributions, annual leave , sick pay etc..

Ok thanks for that,I'm not educated on this stuff.I am thinking of going self employed and the man I am dealing with is a self employed tradesman.so instead of me being an employee he wants me to go as a sole trader.
I thought if there was a ball park figure in what he can offset per euro in expenses etc it would help me get a better hourly rate.thanks for your help.

vectorvictor

mick121 wrote: »

Ok thanks for that,I'm not educated on this stuff.I am thinking of going self employed and the man I am dealing with is a self employed tradesman.so instead of me being an employee he wants me to go as a sole trader.
I thought if there was a ball park figure in what he can offset per euro in expenses etc it would help me get a better hourly rate.thanks for your help.

Look at it from the angle of what you are saving him:

4 weeks annual leave = 2400
Say 1 week sick leave = 600
No notice requirements = 600 minimum for 1 weeks notice
No employment rights = Pretty priceless
Accountant / Help filling returns = 350 - 1000 depending on how much help you need

So probably you want to be 100-150 more expensive per week than the salary would be.

Budget your tax - that 750 a week isn't all yours even if that's what you receive each week so defo you need an accountant.

There's a reason he wants you be self employed - it shifts everything onto you and gives you no rights.

Also Google pseudo self employment to make sure you don't fall foul of that

Hoboo

vectorvictor wrote: »

Look at it from the angle of what you are saving him:

4 weeks annual leave = 2400
Say 1 week sick leave = 600
No notice requirements = 600 minimum for 1 weeks notice
No employment rights = Pretty priceless
Accountant / Help filling returns = 350 - 1000 depending on how much help you need

So probably you want to be 100-150 more expensive per week than the salary would be.

Budget your tax - that 750 a week isn't all yours even if that's what you receive each week so defo you need an accountant.

There's a reason he wants you be self employed - it shifts everything onto you and gives you no rights.

Also Google pseudo self employment to make sure you don't fall foul of that

Not sure why you think that.

A number of factors will apply to confirm if he is an empoyee of service or for service before that can be fully determined. And he will still have a large number of protections even if found to be for service.

Seve OB

as said, it will be an expense for the employer
this will reduce any profits he has by the full amount paid to you

he is taxed on his profits

it will mean a smaller tax bill for him

but if he has no profits... then there is no tax bill to reduce

its impossible for us to tell how much it will save the employer

ari101

If you do it make sure you are certain you protect your own interests. Just some considerations (I'm sure there are more)...

Make sure you end up with enough/the same/more money after all extra costs. Consider accountants fees, paid vacation/public holidays lost, etc. Is he going to pay your invoices as and when they fall due? I feel like you are admitting to a lack of familiar with taxes, so you will definitely need an accountant to help file your Form 11, you should get advice from the start, so you can pay preliminary tax if necessary, and/or make sure you know how much of your income you need to keep aside for your tax bill. If you are earning enough will you need to register for VAT (I hate VAT so cannot offer any advice on that subject other than you should check )?

Although you will pay and have some entitlements under PRSI, they are different to those you have as an employee. There is a nice comparison of differences between entitlements at the below link.
http://www.welfare.ie/en/Pages/Social-Insurance-and-the-Self-Employed.aspx#q5

Vectorvictor makes some good points on considerations for calculating your rate, as does he about making sure you are correctly classified as an employee or a contractor.
If I remember rightly some of the indicators to be considered when deciding if you are an employee include; whether you are at the bosses beck and call, don't have much say in what you do and when, are using his tools/supplies, can't subcontract the work he gives you, etc.
Revenue take significant issue with someone being treated as a contractor if in reality they are an employee.

Also, if you are a subcontractor do you need your own insurance when working on site? As an employee you should be covered by you bosses (assuming he has some!)

IMO (and it's just an opinion) being truly self employed has lots benefits, but it comes with additional costs, risks and administration that being an employee really saves.

mick121

ari101 wrote:

Make sure you end up with enough/the same/more money after all extra costs. Consider accountants fees, paid vacation/public holidays lost, etc. Is he going to pay your invoices as and when they fall due? I feel like you are admitting to a lack of familiar with taxes, so you will definitely need an accountant to help file your Form 11, you should get advice from the start, so you can pay preliminary tax if necessary, and/or make sure you know how much of your income you need to keep aside for your tax bill. If you are earning enough will you need to register for VAT (I hate VAT so cannot offer any advice on that subject other than you should check )?

Good advice,cheers

Effects

As a subbie of him, will you have to pay Relevant Contract Tax?
So he takes a percentage of what he's due to pay you and pays it to Revenue directly.
Then that's offset from your tax bill at the end of the year.

mick121

Effects wrote:

As a subbie of him, will you have to pay Relevant Contract Tax? So he takes a percentage of what he's due to pay you and pays it to Revenue directly. Then that's offset from your tax bill at the end of the year.

AFAIK i should be working under a c35.I really appreciate all the good advice from everyone.Lots to take on board