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Can an employer hire an employee outside of normal work hours on an ad-hoc freelance basis?

  • 15-07-2022 10:46am
    Registered Users Posts: 225 ✭✭

    As per title, I'm wondering are there any restrictions for this type of arrangement.


    Edit: Can Company X, who employs person A on a full time basis, also hire that person in a freelance capacity for additional work outside of normal work hours etc?

    Post edited by newboard on


  • Moderators, Business & Finance Moderators Posts: 9,440 Mod ✭✭✭✭Jim2007

    And why should there be? Provide the employer complies with the relevant legislation. Lots of people provide services on an ad-hoc basis every thing from repair services to cleaning.

  • Registered Users Posts: 4,132 ✭✭✭Deeec

    If they are freelance they are self employed and not an employee. Yes a business can use freelance people to provide ad hoc services.

  • Registered Users Posts: 225 ✭✭newboard

    Sorry I think my post was unclear.

    Can Company X, who employs person A on a full time basis, also hire that person in a freelance capacity for additional work outside of normal work hours etc?

  • Registered Users Posts: 4,132 ✭✭✭Deeec

    No I would think not - Revenue would see the person as an employee and all income earned from the employer should go through the PAYE system.

    Is the person already registered as self employed and do they provide the freelance service to other business's?

  • Registered Users Posts: 25,265 ✭✭✭✭Mrs OBumble

    Is the work similar to the PAYE employment work?

    Or is it totally different? Eh an accountant doing a freelance photography or poster design gig for them?

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  • Registered Users Posts: 225 ✭✭newboard

    The employee would not carry out this type of work in their normal role, but the work would be in the same 'field" as what they do.

  • Registered Users Posts: 43 dat6

    I don’t see why not?

    If agreed by both parties, you could be employed or self employed for the additional work. In theory, you can do what you want if both agree.

    The only thing that might come up is the Working Time Directive. It’s effect will depend on the exact details.

    Revenue don’t care as long as you are paying tax on all income (be it via PAYE or tax returns).

    It can be deducted via tax credits for a PAYE worker.. depending on the circumstances

    When earning income from both PAYE/employment and self-employment it is still necessary to register for income tax under the self-assessment system. Your employer will deduct the necessary PAYE/PRSI/USC from the employment income and you will need to account for any additional tax due on your self-employed income when filing your tax return.

    The total income i.e. employment and self-employed income, is declared to Revenue. Your final tax liability is calculated on the total income earned, and the taxpayer receives a credit for the deductions that the employer has taken at source. Any taxable welfare payments received in the year should also be declared on your income tax return. A list of taxable and non-taxable social welfare payments can be found here.

  • Registered Users Posts: 25,265 ✭✭✭✭Mrs OBumble

    Not quite true that revenue don't care: they don't get employer PRSI on self-employed hours. But if it's clearly different work, done either the employee's own equipment, at a time+place of their choosing , then it probably really is genuine self employment.

  • Registered Users Posts: 4,132 ✭✭✭Deeec

    Revenue will indeed care about this. To be viewed as self employed for the other services the provider will also have to be providing services to other clients. If they don't have other clients revenue will deem the income should have been paid through the PAYE system.

    There could be financial consequences down the line if the employer or employee/service provider is ever audited by Revenue.

    Why not just pay through payroll?

  • Registered Users Posts: 225 ✭✭newboard

    Thanks for the replies. I got some professional advice on this myself and the view is that this shouldn't be done at all, as Revenue seeks to impose PAYE on almost all employer/employee relationships, so this kind of arrangement would likely be penalised if audited.

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