Self employed with 1 client at 100%?

SteadyEddie

Hi all,

My wife and I are moving back to Ireland shortly. My wife has the opportunity to do some consulting work with a firm in the Netherlands. I appreciate any help on the following questions:

1. Is setting yourself up as a sole trader the best solution?
2. Is there a limit that she can work with the client? Is 100% that possible?
3. Any other tips are appreciated.

Many thanks

https://www.revenue.ie/en/employing-people/becoming-an-employer-and-ongoing-obligations/guide-to-pay-as-you-earn-paye/determining-the-employment-status-of-an-individual.aspx

The Revenue Commissioners have tests to tell if someone is self employed or an employee.

100% of work with one client would suggest they are an employee rather than self employed.

Gloomtastic!

There is a problem with working for one client 100% but you have a whole tax year - January - December to get at least two more. They don’t have to be large accounts just additional clIents.

However, the rule of thumb is never have more than 20% of your revenue from one client. If they go, you are in trouble.

(In the Celtic Tiger days, Ireland had 28% of their tax revenue coming from the construction sector - look where that got us!).

SteadyEddie

Thanks for these helpful insights. If my wife started 80%, and was open to other work but didn’t find it, would revenue really have a problem?

Gloomtastic!

SteadyEddie wrote: »

Thanks for these helpful insights. If my wife started 80%, and was open to other work but didn’t find it, would revenue really have a problem?

As long as she can show she has other clients, for example a temping agency, then she is a sole trader.

As for whether your wife should be a sole trader, will she be financially responsible to her clients? If she didn't deliver could they sue her for negligence? If not, then sole trader is the simplest and cheapest option. If yes, then you both could lose everything you own. In that case she needs to form a limited liability company and take out professional indemnity insurance.

antoinolachtnai

I really don't think you are going to have a big problem here. The client is in another country and won't really control how the work is done to any great degree.

I would talk to an accountant to make sure you are doing everything by the book.

BorneTobyWilde

antoinolachtnai wrote: »

I really don't think you are going to have a big problem here. The client is in another country and won't really control how the work is done to any great degree.

I would talk to an accountant to make sure you are doing everything by the book.

You need to empty your mail to get more storage. Can't PM you .

Hollister11

Maybe it would be worth ringing Revenue/ meeting with a Solicitor to find out your exact requirements.

scheister

rough questions to ask

Can she work for other companies at same time?
Does the dutch company control her days and hours?
If she cant do she work can she find someone else to do it?
Who's equipment will she be using?
Who's building will she be using?
Is she liable if something goes wrong?

some may not be relevant here.

SteadyEddie

scheister wrote: »

rough questions to ask

Can she work for other companies at same time?
Does the dutch company control her days and hours?
If she cant do she work can she find someone else to do it?
Who's equipment will she be using?
Who's building will she be using?
Is she liable if something goes wrong?

some may not be relevant here.

In answer to your questions in order:

1. She could technically work for another company, but this work will take up most of her time
2. Main thing is that she delivers the work, but there would be expectations that she is working an agreed number of days that line up with the work
3. She has some rare skills and wouldn’t be able to pass the work onto someone else
4. Her own equipment
5. Her own office
6. If she has her own business then it’s a risk she will take