Sole Trader - Contractor

HI,

I am in the process of setting up a new sole trader business. My profits will be small, around €35,000 a year I am hoping.
I will be carrying out general plumbing in houses and some bathroom renovations. I may supply some gear in some cases but mostly not. However I will be getting a tiler to do the tiling work for me and will pay him so my initial quote will include his price also, this is the only person I would be using, can you advise what is best to do in this situation? To keep costs as low as possible my wife will be doing my accounts. Could anyone give me advice? Many thanks, C.

Well the question is - is the tiler an employee or self employed?

See the http://www.revenue.ie/en/tax/it/leaflets/code-of-practice-on-employment-status.pdf for the Revenues view.

If he is an employee then you have to register an employer and operate PAYE/PRSI/USC.

If he is self employed then you have to operate the eRCT system.

Simples!!!