Setting up as a sole trader for 3 months before moving to Employed

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jimmyd

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I worked in IT and due to company closure have become unemployed, I have been offered a job by a company but they want me for the first 3 months to stay off the books as they would be eligable for employment grant aid from the end of january and would hire me offically then. They have told me they want me to invoice them twice a month for my wages as services renendered to them and they would pay and then I would sort out by PSRI or PAYE or whatever was needed. What would I need to do here ? Sole trader? or is there a need to?
 
Firstly I should say that this sounds extremely dodgy and I don't condone it! However, to answer your tax question if you are providing services on sole trader basis you would need to register with the Revenue as a sole trader, by completing a TR1 form (available from [broken link removed]).

You will need to account for your income tax and prsi when you submit your tax return for 2007, due to be filed by 31 October 2008.

If your income in the three months is likely to exceed €35k you will also need to register for VAT (using the same TR1 form)

An alternative to the above would be to use the services of an Umbrella Company (used by many IT Contractors), and become an employee of that company for the first three months. There would obviously be a cost involved, and you may wish to ask your employer to increase your rate to take account of this!!

Regards

podowd
www.prima.ie
 
To be honest, I work in IT and would not take the offer you have been given. There is nothing in writing and tables can turn. If you are based in Dublin the market is very strong for developers at the moment - hightail it to an agency..
P.
 
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