paye or contractor

runningmad

Registered User
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I have been offered a new job at 21 euro p/h as a PAYE worker or 28 euro P/h as a contractor, both ways are 11months contract. Has anyone any advice for such situation? I know nothing about setting myself up as a contractor or what the tax implications would be. Any advice greatly received. runningmad
 
There are advantages and disadvantages to becoming a contractor. It would seem from your question that you will be working a set amount of hours on an 11 month contract so you would not have any flexibility in the times you work. You would get seven euros extra per hour which is not to be sneezed at but you would loose annual leave, sick pay etc., and will not be covered by employment law that applies to normal employees. I presume you will have to submit invoices and keep records. You will have to register with Revenue and complete your tax online via ROS. This is not difficult but you have to ensure that you have enough money to pay the tax when it becomes due - usually end of October. There is also the question of preliminary tax. I also think that contractors pay PRSI at a lower rate class S but also do not get the same benefits as employees who are on Class A
 
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