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New Service Business - Need Help

  • 14-06-2009 5:36pm
    #1
    businessboy
    Closed Accounts Posts: 71 ✭✭


    hi all

    im currently thinking about setting up a service based business in the west but am unsure of staff costs etc.

    to keep things simple i was wondering is it possible to hire staff in to do a job for someone else.

    for example - say someone wants a cleaners, i have a list of cleaners on my books and am the middle man. i hire in the cleaner to do the job as an independent contractor.

    is this allowed and what do i have to consider or beware of.

    any advice would be great.


Comments

  • #2
    Snowdrop
    Closed Accounts Posts: 148 ✭✭Snowdrop


    Assuming the customer pays you and you pay the cleaner, the cleaner will need to be an employee of yours and you will incur employer PRSI(up to 10.75%) , however there are ways around this such as the cleaner operates as a limited company or registered sole trader.
    Even as a sole trader, you need to be careful. Revenue have guidelines for determining whether someone is an employee or not and can pursue you if they decide that the cleaner is an employee. There is an info leaflet on revenue.ie.
    One option you have is to insist that the cleaner uses a managed services company to invoice you. Then you will be protected.


    Secondly, Insurance is also very important and should not be overlooked.


  • #3
    antoinolachtnai
    Registered Users, Registered Users 2 Posts: 9,815 ✭✭✭antoinolachtnai


    I can't see much point working for you if you can't provide a fairly steady flow of work. Most demand for cleaning is like this - it's regular, not occasional, anyway -.

    Your overheads will go way up if you have to contract your cleaners through a managed services company. I don't see how this can work. Cleaning is basically a HR management business. If you don't want to do HR, don't get into the clening business.

    You could outsource to an actual cleaning company and sell the service as part of a bigger managed package, but obviously this will absorb the margin. Also, you lose control.

    You will probably have to pay vat, if that matters.


  • #4
    Kingkong
    Registered Users, Registered Users 2 Posts: 562 ✭✭✭Kingkong


    Hmmm assuming you hire people adhoc and ur not acting as an employee you could just invoice the cleaners to pay them instead of having them down as employees. You will have to VAT register once you hit 37K worth of sales.

    BTW its safer to have them as employees if Revenue were to come asking question but its possible to just invoice them if ur only hiring them adhoc


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