Self Employed or Dole?

HaigP

I was made redundant two weeks ago from a permanent job that I worked for 7 years. I have now been offered 4-5 months work in a self employed role which I hope to do as want to stay working. However I am getting totally mixed advice amd am confused. Some accountants are saying a self employed role will affect my social welfare when I do go to sign on after the 4-5 months work. Others are saying it has no effect whatsoever. Any advice would be appreciated. Thanks.

Mrs OBumble

It depends on how your situation is managed.

Google "umbrella companies" - actually there's a thread in Work Problems about them (try boards.ie search).

Basically they act as your employer: they invoice the client, and take your employer PRSI + their fee, and pay you the rest. That way you keep paing class A PRSI and stay dole eligible.

Some accountants may do this for you, but I'd recommend a company who've done it before, and so know that they'll have to do a few Welfare forms etc for you too.

Registering as a sole-trader yourself, or forming a company even, if worth it if you'll be contracting long term but not otherwise.

LUONATTA

My daughter has been self employed designer for several years, (sole trader) and has mixed PAYE contracts and unemployed. It just a matter of keeping your books straight and detailing all your income and expenses for accountant. There are issues with unemployment, if you are means tested as example, then social welfare will deduct any income you earn from freelance and readjust your figurs, also you are entitled to work up to 3 days week on the dole and so you will recieve 3 days dole money. I know its hard cos you dont want to refuse work if you are able to get it these days. a phone call to your social welfare offiice is my best advice and get yourself a good accountant.

HaigP

Thank you both. I will check out the "Umbrella Company" thread and will also contact the social welfare office.

eastbono

HaigP wrote: »

I was made redundant two weeks ago from a permanent job that I worked for 7 years. I have now been offered 4-5 months work in a self employed role which I hope to do as want to stay working. However I am getting totally mixed advice amd am confused. Some accountants are saying a self employed role will affect my social welfare when I do go to sign on after the 4-5 months work. Others are saying it has no effect whatsoever. Any advice would be appreciated. Thanks.

I am presuming that you paid A class contribution in your 7 years of employment. If that is the case when your self-employment finishes in 4-5 months you should be eligible to claim jobseekers benefit. If you make your claim in 2011 then the governing year is 2009. If its 2012 the governing year will be 2010. As you have worked as a full time employee in both those years it should not be a problem.

You state that you were made redundant 2 weeks ago, you should go to your local sw office and make a claim for jsb straight away and ask for it to be backdated to the date you finished work. If your redundancy package was >€50,000 and you are under 55 there is a disqualification period. Scroll down the attached link to redundancy. The link also gives you all the information with regard to JSB.

http://www.welfare.ie/EN/Schemes/JobseekerSupports/JobseekersBenefit/Pages/jb.aspx

HaigP

eastbono wrote: »

I am presuming that you paid A class contribution in your 7 years of employment. If that is the case when your self-employment finishes in 4-5 months you should be eligible to claim jobseekers benefit. If you make your claim in 2011 then the governing year is 2009. If its 2012 the governing year will be 2010. As you have worked as a full time employee in both those years it should not be a problem.

You state that you were made redundant 2 weeks ago, you should go to your local sw office and make a claim for jsb straight away and ask for it to be backdated to the date you finished work. If your redundancy package was >€50,000 and you are under 55 there is a disqualification period. Scroll down the attached link to redundancy. The link also gives you all the information with regard to JSB.

http://www.welfare.ie/EN/Schemes/JobseekerSupports/JobseekersBenefit/Pages/jb.aspx

Thanks very much. That give me a lot to check out. I will go to SW office in the morning and will check pay slip but 99% sure it was class A i was paying so hopefully will be able to work for at least another 4-5 months. Thanks again.

eastbono

No problem glad to be of help and good luck with the contract.