Self employment

Jose1128

Hi,

Im currently working as a groundworker in construction. Im only working 12 months at this an am a little inexperienced. Ive been offered €20 by my employer to go self employed. Im currently on 17.04. Is this a good idea or bad idea ?? Any opinions welcome thanks. Also in the future I could get more but I lack the experience and knowledge ATM.

Reply

John_Mc

Self employed means no benefits and no sick pay etc. You don't work - you don't get paid, regardless of the reason.

It also means that your PRSI class changes and you won't qualify for job seekers benefit should you be made unemployed. You also need to file financial accounts every year and there's a cost to do that.

From the employers perspective it's easier to hire a business (i.e you as a self employed person) than to employ someone as that employee has rights.

You'd want to be earning a lot more as self employed to justify the risk. You need to research it fully.

the_pen_turner

20 an hour increase yes , it could be worth it. 20 a day wouldnt cover the costs and would be a huge reduction in pay


isnt there a rule about being self employed for the same contracter that you are treated as employed

_Brian

I doubt €3 wilouldmmake it worth your while.

Squall Leonhart

Speaking as somebody who went the self employed contractor route for a while, I'd strongly recommend NOT going self employed for the extra 3 an hour. You WILL be down financially, will stress over affording to take unpaid holidays, getting sick, bank holidays, etc etc.

If your employer ups it to 30 an hour, reconsider. But until then, stay put on your current arrangement.

mulbot

It won't be worth it-I presume he wants you to go a sole trader contracting to his business? I did this( e25 p/h) for a while,it gives the false impression that you are earning a decent weekly wage,however taking into account,no paid bank holidays,or annual leave pay(combined about 6 weeks a year,if you compare to a PAYE worker) and running costs for transport etc you won't be taking home enough (when divided out over 52 week) to make it worth the risk.

Jose1128

Im on 17.04..per hour he will up this to €20 P.h. but like u said it doesnt seem worthwile.. I currently do 50 hours per week.. which in summer will increase to 55-60 hours. I suppose I should wait till im offered €25

Jose1128

Yes I understand what your saying.. my response from people on sites is 50/50

mulbot

Is there a way for you to do price work for this employer?

Squall Leonhart

Don't forget your PRSI contributions will increase if you're self employed. For a while there I was classed as both employer and employee, paying 4% employee plus 10.75% (I think) as employer. Eventually I switched things up to a limited company and went S class PRSI for some savings, but my point is, don't be fooled by what looks like an extra 150 a week.

Dial Hard

Jose1128 wrote: »

Im on 17.04..per hour he will up this to €20 P.h. but like u said it doesnt seem worthwile.. I currently do 50 hours per week.. which in summer will increase to 55-60 hours. I suppose I should wait till im offered €25

You would want at least double your current hourly rate to make it even remotely worth your while. Don't do it for €25.

OU812

You need to allow for about 25%-30% gone in taxes.

emo72

It's just an erosion of your rights. Don't do it. Ask yourself why your employer is pushing for this. I'm self employed I'd kill to have a job like yours. Holiday pay, bank holidays, actually able to enjoy a day off knowing your being paid, sick pay. Your giving up too much.

Rulmeq

One small thing a lot of people forget about as well is that your tax credits will drop (by about €500, but still), as a construction worker your PRSI payments are worth quite a lot to you, and don't forget that your employer will be saving up to 12% (It's currently 10.75%, but will increase over the next few years to be 12%), so nearly €2 of that €3 increase is from his PRSI savings (At least he's giving it to you, rather than pocketing it, but when you factor in 20 days holidays, you aren't getting anything extra)

emeldc

Unless I'm missing something here if you are self employed you will be invoicing your 'employer'. €25 p/h x 50hrs x 50 wk's = €62,500 pa. PLUS VAT. The threshold is €37,500 for supplying services and €75,000 for goods. Walk away.

L.Jenkins

I share the sentiment of everyone else on this thread. You'll pay your usual PAYE, USC and PRSI alongside Employers PRSI and VAT on your earnings. To go out as a contractor, you'd want at least €250 - €300 per day for a 5 day week over 48 weeks. The 4 weeks from 52 take into account your personal holidays, bank holidays and and any time you may need to take off.

Jose1128

Thanks everyone im gonna stay as an employee instead.

ibarelycare

Squall Leonhart wrote: »

Don't forget your PRSI contributions will increase if you're self employed. For a while there I was classed as both employer and employee, paying 4% employee plus 10.75% (I think) as employer. Eventually I switched things up to a limited company and went S class PRSI for some savings, but my point is, don't be fooled by what looks like an extra 150 a week.

This is incorrect. Your business doesn't have to be a limited company for you to qualify as S Class. As a self-employed person you would only have been paying 4% PRSI on your own income. You either don't remember correctly, or you massively overpaid PRSI.

Squall Leonhart

ibarelycare wrote:

This is incorrect. Your business doesn't have to be a limited company for you to qualify as S Class. As a self-employed person you would only have been paying 4% PRSI on your own income. You either don't remember correctly, or you massively overpaid PRSI.

Seems I massively overpaid PRSI in that case..