Self Employed

[Ger171]

My fiancee is a plumber by trade. Currently he is a PAYE worker. I have heard that it would be more benefical for him to be registered as self-employed. However, there is something about his employer withholding 35% of his invoice, which he would, in turn, have to claim back from the revenue.

Does anyone know how this works? Presumably we would invoice the employer for work done? If he becomes a limited company does the 35% thing happen? Can you be VAT registered if you are self-employed or is that just if you are a Ltd company?

 

[Ham Slicer]

If he becomes self employed he will not have an employer.

If he comes and fixes my tap he will charge me €100 and I will pay him €100.

However, say he is a subcontractor on a building site, the principal contractor (say property developer) will only pay him €65 and withhold the other €35 (35% of €100). The property developer will not withhold this 35% if he provides the principal with a C2. The C2 can be got from Revenue upon application etc.

So basically he goes off and fills in a TR1 with Revenue to become self-employed. He will then apply for a C2 from Revenue. He gets his C2 and then when he does contract on building sites etc 35% will not be withheld.

He can reg for vat being self employed
Will also need C2 if operating through company

Read this for more info [broken link removed]