WorkLINQ

Below are some questions and answers to things that have come up for one-to-one support participants over the duration of the WorkLINC Project. We hope you find what you need here and please do let us know if there is something you feel should be covered below so that we can keep this resource updated and relevant to the needs of our Community.

Being Self Employed/Setting up a business:

What is the difference between setting myself up as self-employed vs a small business?

Self Employed = being a Sole Trader and is relatively straight forward

A Limited Company is a legal entity, separate to you and is subject to strict regulation

What is no different in both cases:

• You can register a business name with the CRO
• You can be an employer / register for VAT
• You must keep accurate and complete accounting records for a minimum of 6 years
• You must pay tax and preliminary tax by October

Are there pros/cons to either?

Sole Trader Pros:

• Simple to set up and close down
• Less legal filings compared to Ltd company
• More privacy than a company – your financial info remains between you and Revenue, not available to the public
• You can be a Sole Trader and also have a paid (PAYE) job
• You can form business partnerships with other Sole Traders

Sole Trader Cons:

• There is no legal difference between you and the business, if your business owes a debt so do you (ie your personal assets can be used to pay the debts of the business)
• All income less business expenses is treated as your personal income and taxed as per your personal Income Tax levels

Limited company Pros:

• Limited Liability, the company is a separate legal entity from you and your personal assets cannot be used to pay company debts
• You can be an employee of your own company with access to employee benefits ie small benefit scheme
• Corporation tax is 12.5%

Limited company Cons:

• More regulated filing (CRO / RBO)
• Proper financial statements must be prepared by qualified account person for upload and file to CRO, additional cost that a Sole Trader would not have
• Fines and Penalties for non-compliance with filing and Company Law
• Directors have legal obligations
• Public access to company financial statements

 What is the step-by-step process for getting myself set up as self-employed?

Firstly, if you are just starting and testing the waters with your new sole trader idea, if you will earn less than €5,000 that year you don’t need to register as a sole trader. Keep good accounts so you can be sure you are under the €5,000 and you can then submit that as extra income when completing your normal tax return via your Revenue ‘My Account’

Otherwise the Process is as below:

You must already have an Irish PPSN – this will be your Sole Trader tax Reference Number

Via Your Revenue ‘My Account’ click ‘Tax Registrations’, then click ‘register’ and under tax type select ‘Income tax’

You must confirm your NACE code – this is a code related to the type of business you intend to carry on.

You need to state the start date and the expected turnover (how much money do you expect to take in in the first 12 months)

You can register a company name (if you want a name separate to your own) with the CRO, this costs €20. You will need that to open a business bank account.

Set up a company email address.

You will need to Register for ROS (Revenue Online Service) this is different to My Account and is for Business Taxes. This puts a digital cert on your computer and you can only access it from that computer – unlike ‘My Account’ where you can log in from any device once you have the password.

Open a business bank account and keep the business income and payments as separate from your personal account as you can.

What documents should I have ready before I start the process?

You will need to know your PPSN, have access to your My Account.

What is the process for paying taxes as a self-employed person?

As self-employed your income for tax purposes is based on the profits of your business – all the income less the business expenses.

If you do not have a strong accounts background get some help setting up good systems of keeping your accounts records.

In Oct you must file and pay your income tax for the previous year (this is done by completing a F11 on ROS) as well as a preliminary tax for the year ahead. I would suggest trying to have your accounts finalised by March / April so you know what your tax bill will be in October and have time to put money aside to pay it.

What are the potential pitfalls to be aware of?

• Keep all receipts and good records.
• Make sure the system you set up helps you keep track of who has paid you / who still owes you money.
• Start small – don’t invest your life savings into something you haven’t tested out.
• Paying yourself from the business is called ‘Drawings’, if you can pay yourself some regular amount – then pay your own bills from your personal account. Try to avoid paying any personal expenses directly from the business bank account. This will help you when preparing your sole trader accounts at the end of the year.

All WorkLINC participants are welcome to a free 30 min consultation with Sarah @ Bookkeep Kinsale – www.bookkeepkinsale.ie Email@: sarah@bookkeepkinsale.ie

Minimum Wage – The national minimum wage for an adult employee is €12.70 per hour since 1 January 2024. Lower minimum hourly rates may apply if you are younger. For example, a person aged under 20 may get paid less than the national minimum wage.

Current minimum rates of pay:

Some people get sub-minimum rates, see rates below.

Rates on or after January 2024:

(www.citizensinformation.ie)

You can find detailed information regarding your rights with regard to various other areas of employment (listed below) on the Citizens Information website here

• Contracts
• Working Hours
• Breaks
• Right to disconnect
• Leave from work (Annual leave, sick leave, public holidays, protective leave

What financial supports are available to me for 3^rd level or further education?

Deciding to enter 3^rd level education is a big decision and commitment, whether that be after secondary education or further down the road as a mature student. For many people, costs are a barrier to education so its important to be aware of different funding streams, grants and financial supports available.

SUSI

“SUSI is Ireland’s national awarding authority for further and higher education grants. We offer support to eligible students in approved, full-time courses at PLC, undergraduate and postgraduate levels and in some cases, to students studying outside Ireland.”

SUSI  have an easy to navigate website, with plenty of efficient tools to check whether you are eligible for a grand and a straightforward application process all in one place. We advise to check as far in advance of the academic year commencing as you can to allow sufficient time to be evaluated and to be ahead of the crowd in terms of being allocated some of their funding.

You can access the SUSI website

The Student Assistance Fund

The Student Assistance Fund provides financial assistance for full-time higher education students who are experiencing financial difficulty. The fund covers things like:

• Books and class materials
• Rent, heating and lighting bills
• Food
• Medical expenses, i.e. doctor or dental visits
• Childcare
• The cost of essential or urgent travel
• The cost of study abroad if it is a compulsory part of your course
• Expenses associated with family breakdown, bereavement, or accidents

You can apply for the Student Assistance Fund in your college or university. For more information about the Student Assistance Fund, how to apply and a list of participating institutions click here

There are 9 grounds for discrimination, known as the protected grounds. These are:

• Gender: includes man, woman or transgender (see ‘legislation covering discrimination’ below)
• Civil status: includes single, married, separated, divorced, widowed people, civil partners and former civil partners
• Family status: this refers to the parent of a person under 18 years or the resident primary carer or parent of a person with a disability
• Sexual orientation: includes gay, lesbian, bisexual and heterosexual
• Religion: means religious belief, background, outlook or none
• Age: this does not apply to a person aged under 16
• Disability: includes people with physical, intellectual, learning, cognitive or emotional disabilities and a range of medical conditions
• Race: includes race, skin colour, nationality or ethnic origin
• Membership of the Traveller community.

You are protected by law if you are:

• a full-time, part-time and temporary employee.
• a public or private sector employee.
• a self-employed contractor or partner in a partnership.
• an officeholder in state or local authorities.
• seeking work through employment agencies.
• a trainee doing vocational training.
• a member of a trade organisation, union or a professional body.
• doing paid work experience.

Note: Unfortunately, volunteers are not covered.

There are 4 types of discrimination covered under the Employment Equality Acts

Direct discrimination: defined as the treatment of a person in a less favourable way than another person who is in a comparable situation, because they differ on any of the nine grounds described above.

Discrimination by association: when a person who associates with another person is treated less favourably because that other person differs under any of the nine grounds

Indirect discrimination: where an apparently neutral provision, criterion or practice which appears unproblematic at first sight, puts a person differing under any of the nine grounds at a particular disadvantage, compared with another person.

Instructing discrimination: when someone gives an order or instructs another person who is in some way dependent, such as an employee, to discriminate against another person.

The Employment Equality Acts oblige employers to make reasonable accommodation for people with disabilities.  An employer must take ‘appropriate measures’ to meet the needs of disabled people in the workforce. This means they must make arrangements that will enable a person who has a disability to:

• have equal opportunities when applying for work
• be treated the same as co-workers
• have equal opportunities for promotion
• undertake training.

Further information on employers obligations regarding disability and reasonable accommodation can be found here

What can I do if I feel I have been discriminated against?

Contact the Workplace Relations Commission (WRC). The WRC is the body that hears discrimination complaints under Ireland’s equality laws. The WRC deals with both employment and service/goods related claims. There is no fee to bring a case to the WRC and complaints can be made online. You can view a short accessible video here on how exactly to file a complaint with the WRC.

Contact the Irish Human Rights and Equality Commission. They have a statutory role to fight discrimination and provide information on equality and human rights in Ireland. Please note however that they are not a court and do not decide on discrimination claims. You can find their website here

Legal advice:

The Free Legal Advice Centre (FLAC) provide confidential, basic legal advice for free and in person across all areas of law. FLAC offers a network of advice clinics around Ireland, and you may be able to identify the most suitable one at the following link: Legal Advice Clinic.

Free Legal Advice Centres,
13 Lower Dorset Street,
Dublin 1,
Ireland

Phone: Lo-Call: 1890 350 250

Web: https://www.flac.ie/

 Citizens Information:

Citizens Information Centres (CICs) provide free, impartial information, advice and advocacy from more than 215 locations around the country.

Find a Citizens Information Centre
https://centres.citizensinformation.ie/

 Will I be paid for a trial or practical interview?

Unless you are being employed by close family relatives or are a registered industrial apprentice, you must be paid the national minimum hourly rate of pay-

The legal requirements regarding payment for work trials and further information regarding your rights can be found on www.workplacerelations.ie

Are there any free training courses I can access to upskill myself?

There are several free training resources available in Ireland depending on your circumstances.

Future in Tech is an online training and mentorship programme, helping jobseekers without a tech background develop new skills and access job opportunities. You can find out more about the courses here

Skills Connect facilitates the rapid reskilling of workers seeking re-entry into the workforce.

You can read more about Skills Connect here

Springboard+ is a government initiative offering free and heavily subsidised courses at certificate, degree, and masters level leading to qualifications in areas where there are employment opportunities in the economy. These areas include ICT, engineering, green skills, manufacturing and construction, among many others. Find a list of courses and how to apply here

Other Opportunities:

An apprenticeship is a training and education programme. It mixes learning in a college or training institution with work-based learning in a company. At least half of apprenticeship learning is done on the job. As an apprentice, you earn while you learn. You have a formal employment contract, and you’re paid a salary during your apprenticeship training. Apprenticeships can last between two and four years. If you are interested in in starting an apprenticeship in Ireland, a full list of apprenticeships can be found here