self employed to work for a charity -taxes?

[sunflower32]

I'm about to change careers and eventually will end up working in the not for profit area. As they only want to offer a temporary contract, I would prefer that instead of working for the charity directly - they would pay me intsead as a self employed person on a contract. However I found out that by doing this I would have to register and charge VAT which charities can't claim back?!

Two questions - how can I make it attractive for the charity to pay me this way - can they claim back tax on non profit making activities (saw this somewhere) - can they benefit by paying me this way?

what should I consider or what should be the main things I compare with a straightforward employment contract versus a contract for services?

As a self employed person working in this area would I be exempt from charging VAT?

 

[Brendan Burgess]

As a supplier of professional services, you will have to charge VAT if your income is above the threshold.

The charity has to pay VAT.

It won't be attractive to them. They will be paying 21% VAT instead of 10.75% employers' prsi.

You should simply go down the PAYE route.

Brendan

 

[Ham Slicer]

It won't be attractive to them. They will be paying 21% VAT instead of 10.75% employers' prsi.

You should simply go down the PAYE route.

Brendan

Asuming you're going to charge €100 per day.

Cost to charity as self-employed is €121 (100 * 1.21)

Cost to charity as employee is €110.75 (100*1.1075).

So why not go self-employed and charge €91.52 (110.75/1.21) plus VAT.

Just an option

 

[WizardDr]

Need to look at the VAT threshold, but the point is well made above, that if you have to charge them VAT then they cannot recover it. Is it in the nature of training?

 

[sunflower32]

Need to look at the VAT threshold, but the point is well made above, that if you have to charge them VAT then they cannot recover it. Is it in the nature of training?

thanks - not training - more management consultancy/communications