Self Employment - paying own taxes

[steffie1901]

I stopped work in June 2014 due to illness. I did not claim any benefits during this period. I have now been offered a part time job for 3 days a week earning €300 as an office administrator. However I have to sort out my own tax etc. It seems somewhat excessive that I should have to register as self employed, open company bank accounts when I will not be making a profit and just want to pay any tax or prsi that will be due. Some advice would be greatly appreciated.

 

[Mrs Vimes]

Hi Steffie,

welcome to askaboutmoney.

It sounds pretty dodgy to me that an office admin job would be classed at self-employment, i reckon this company are trying to avoid you getting any employee rights and avoid paying PRSI for you.

Revenue would likely see through this very easily.

If this was a genuine case of self-employment you would not need to open company bank accounts.

Unless you had overheads the entire €300 would be profit.

 

[Nutso]

http://www.revenue.ie/en/tax/rct/determining-the-correct-employment-status-of-a-worker.html
Have a read of the above link - this should determine whether you would be seen as an employee or self-employed in the eyes of revenue.

 

[Gordon Gekko]

This sounds like a sham arrangement.

You would be an employee in the eyes of Revenue.

 

[dublin66]

The risk here is with the employer. All you have to do is have the money paid into your normal bank account and pay your tax under the self assessment system. Slight bit of work with working out preliminary tax and filing tax returns but it should be straight forward enough. You want to file a Form 11.


The comments posted above relate to the employer's risk that you an employee and the employer should have deducted PAYE/PRSI and USC. If the Revenue review your situation and decide that you are an employee it is your employer who will have to pay any additional tax liability. The tax downside for you is that you won't get the employee tax credit of €1,650 when you