Contractors in Ireland can be set up in 2 ways, Employed and Self Employed.

The Irish market is very similar to the UK market, so there are many contractors who do operate as independent workers.

However the authorities are aware of and desperately trying to battle bogus self-employment. When considering the
engagement of independent contractors, the following criteria are commonly used by the courts; control, obligation,
substitution, equipment, training, exclusivity. None of the criteria should be considered independently and there is no
need to tick every single box – it’s a matter of having an overall assessment.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of other EU/EEA and Switzerland can live and work in Ireland without registering (but they should be engaged in economic activity or; have sufficient resources and sickness insurance or; be a family member of an EU citizen that meets one of the previous criteria.

Workr fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – We ensure the worker is registered with the Revenue (for tax, PRSI and USC deductions)

Contract – A contract or at least a written statement of the particulars of the terms of employment must be provided not later than two months after the date the employment commenced.

Employers social security – contributions, PRSI, is calculated at 11.05% of the employee’s gross salary (no income cap).

Employees social security – PRSI is calculated at 4% of the gross salary (no cap).

In addition Universal social charge for those earning more than €13,000 gross per year is calculated as per the following 0.5% of annual income up to €12,012, 2% of annual income between €12,012.01 and €20,687, 4.75% of annual income between €20,687.01 and €70,044 and 8% of annual income over €70,044.

Tax – Income tax is based on the following brackets and rates 20% on earnings up to €35,300 and 40% on earnings above €35,301

Benefits – Holidays: 20 days (four working weeks) per year. 9 public holidays. Notice period: one week’s notice after 13 weeks to two years’ service; two weeks’ notice between two and five years’ service.

Self-Employment Summary

Registration – Social security, Tax and VAT are all registered for under the self-employed option.

Contract – A fixed-term or open-ended contract can be used in Ireland.

Social Security – PRSI is calculated at 4% of the gross salary (no cap).

In addition Universal social charge for those earning more than €13,000 gross per year is calculated as per the following 0.5% of annual income up to €12,012, 2% of annual income between €12,012.01 and €20,687, 4.75% of annual income between €20,687.01 and €70,044 and 8% of annual income over €70,044.

Tax – Income tax is based on the following brackets and rates 20% on earnings up to €35,300 and 40% on earnings above €35,300.01

Benefits – One can claim the cost for day-to-day running of the business, which may include things such as: wages, rent, rates, repairs, lighting and heating etc; running costs of vehicles or machinery used in the business; accountancy fees; interest paid on any monies borrowed to finance business expenses/items; lease payments on vehicles or machinery used in the business. Travel to a place where work is to be carried out (but is not the usual place of work) can be claimed too.

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