Are there any issues hiring a long-term freelancer through Upwork for an Irish company?

KpsCowley

Are there any issues hiring a long-term freelancer through Upwork for an Irish company?

Hiring a freelancer through Upwork can be much cheaper when they are based in countries such as the Philippines, in my experience the quality of work has been excellent. I just wonder if there are any business implications in doing this.

• Can the costs be accounted for as a business expense, for example, stated as third-party services?
• I assume VAT wouldn't be an issue, as none would be charged by Upwork.
• Would there be any legal implications such as the Upwork freelancer being considered as an employee of the Irish company?
• If a certain contract term is reached, would the legal status change?

Thank you

Gloomtastic!

Just in my opinion, as you are not supplying a place of work or any equipment to carry out that work - both of these would be the responsibility of the freelancer. Then I don’t think you would, by the Irish tax authorities, be considered an employer. How the Philipino (sp?) tax man would view this is entirely another matter.

They do the work, they invoice you, you pay them and deduct any payment as an expense.

KpsCowley

Hi Gloomtastic,

Thank you for your opinion, I was thinking and hoping as much.

Regards,

Kevin.