Re: employer forcing me to become Sole Trader, what do I loose out on or gain by this
Under Revenue rules, if you carry on working at the same premises, doing the same work, and being paid a weekly/hourly rate, and get paid holiday pay and sick leave, I would assume that you are an employee, no matter what your boss says.
Can you clarify what eactly you do and what type of business it is?
Is your boss aware of the Revenue rules? Your employer can't choose whether you are an employee or self employed!!! It is based on fact.
However, if he forces you to become a sole trader there is not much you can do about this - you will not get into trouble for this, it is he who may be enquired into by the Revenue - not you.
As an employee, you have employment rights. Is he making you redundant? Is he paying you redundancy pay?
As a sole trader, this will impact on your right to benefits. I have set out below the benefits you can claim as an employee and self-employed (as far as I am aware).
Class A Benefits - for Employees:
* Jobseeker's Benefit
* Illness Benefit
* Health and Safety Benefit
* Invalidity Pension
* State Pension (Transition)
* Treatment Benefit
* Occupational Injuries Benefits
* Carer's Benefit
* Widow's or Widower's (Contributory) Pension
* Guardian's Payment (Contributory)
* State Pension (Contributory)
* Maternity Benefit
* Adoptive Benefit
* Bereavement Grant
Class S Benefits - for Self Employed
* Widow's or Widower's (Contributory) Pension
* Guardian's Payment (Contributory)
* State Pension (Contributory)
* Maternity Benefit
* Adoptive Benefit
* Bereavement Grant
As a sole trader, you will have to prepare accounts and tax return every year and pay income tax under self assessment. There may be advantages in this due to the types of expenses that you may be able to claim. However, it is likely that you will need professional advice to do the accounts (to start with at least).
Regarding VAT, generally, if you are providing a service, if your turnover is €37,500 (as at 1 May 2008) or over you will need to register and charge VAT. What is your service? What do you do? Some services may be Zero Rated or Exempt.
Also, as a sole trader you will loose all your employment rights - sick pay, holiday pay, redundancy etc.