I have received a job offer to work in a company 5 mornings a week (20hrs). The MD has said that he would like me to invoice him for my services on a monthly basis.
Do i still get to use my tax credits??
I will not be earning enough to register for VAT but does this mean i'm effectively becoming self employed???
What does this mean for me and what do i have to do??
Thanks in advance
you actually may not be considered self employed. Most recent from the Rev Comm, they are looking at situations where people are contracted to work for companies but the companies determine:
- the place of work;
- the hours of work;
- the duties of the role;
- provide the tools (computer & software) to do the duties.
There are other conditions to add to this.
From the short amount of detail you provided, it would actually seem that you should be treated as an EE, even though the MD might think different.
and why would he???
-firstly he would not have to pay ER PRSI @ 10.75%
-he wouldn't have to operate PAYE/EE PRSI
and why does this matter to you and him?
well if you did as he currently suggests and then the Rev Comm looked at this (and they are) then it would cost the company (for not paying ER PRSI) and potentially you (as not paying EE PRSI means you are not entitled to redundancy, and would affect old age pension).
conclusion - probably best advised to be an EE - for both you and the MD's sake
Yes effectively you would become self employed and have to file a Form 11 every year.
There is info in the stickies on it.
According to most recent situation (.i.e. Locum pharmacists where Rev Comm have contested successfully that these are now EEs and not self employed) and as per a recent Rev Comm/ITI meeting, they are going to be really looking at these types of situations where people are effectively EEs and not self employed.
I would not agree with the moderator's view on this, not with the Rev Comm current successful stance on this.
The OP asked whether he would become self employed by invoicing the company for his services.
The answer is yes.
As to whether in fact he is going to be self employed in the Revenue view it is up to the Revenue to investigate and make a determination on the matter based on the contracted arrangements and the facts.
It is impossible for us to determine that here and is beyond the remit of this forum as if you read the charter specific advice on matters that may be relied upon legally are prohibited.
You cannot make a determination as you do not have the relevant facts as neither do I, nor do I want them. That's between Revenue and the employer.
This is a matter about which a fairly significant body of tax case law and Revenue guidance has developed- you'd be best advised to get professional advice as the consequences of an error can be pretty expensive. As a primer, the following might be helpful:
The article at this link
You could Google the term "Denny case self employed" which established a number of matters taken into account by the Revenue Commissioners in determining your precise status.
Also, these Revenue commissioners links should prove helpful:
lets not fry the mans brain.
If his employer wants him to be self employed. Let him file the form 11 and not worry about it.
If Revenue investigate it is the employer they will be chasing not the employee.
Dude, have a look in the stickies on the guide to self employed. VAT won't be an issue unless you're earning over 75K.