Contractor with Stamp 1G

[stbigo]

My partner is on Stamp 1G (spouse of Critical Skills Work Permit) and recently has been offered a contractor position as a Software Developer at an Irish company in Dublin. This is a full-time contractor position and my partner will work with an accounting company to do the paperwork, paying tax, etc. She is currently paying class A PAYE (paid one month tax already).

Considering her Stamp 1G and the fact that she cannot be self-employed, would it be ok for her to continue to work as a contractor assuming she pays class A PAYE tax (not self-employed tax)? This is the accounting company she's working with weblink removed by moderator

[littlerr]

The PRSI Class does not directly relate to a person's immigration status. In fact, Revenue seldom talks to INIS. As long as Revenue can collect taxes, in most cases they don't really keep a close eye on a person's immigration status.

PRSI Class A *usually* covers most of employees, directly employed by companies.
PRSI Class S *usually* covers self-employed people and directors of companies.

However, a self-employed person can still opt to pay PRSI Class A. They would take home less money, but they would have a wider range of PRSI coverage and protection if they are made redundant. A normal employee cannot pay Class S on the other hand.

Note that in the last few years the Government has increased the coverage for people on Class S greatly, so the difference is quite minimal.

Therefore, if your partner is self-employed, whether she pays Class A or S does not really matter. This is a Revenue issue and both options are legally sound.

INIS only cares about whether your partner is self-employed or not. It sounds like she is treated as being self-employed (since she uses an umbrella company to pay taxes, rather than having tax directly deducted in her payroll by the employer), so my opinion is that this is not allowed under Stamp 1G rules.

[stbigo]

The PRSI Class does not directly relate to a person's immigration status. In fact, Revenue seldom talks to INIS. As long as Revenue can collect taxes, in most cases they don't really keep a close eye on a person's immigration status.

PRSI Class A *usually* covers most of employees, directly employed by companies.
PRSI Class S *usually* covers self-employed people and directors of companies.

However, a self-employed person can still opt to pay PRSI Class A. They would take home less money, but they would have a wider range of PRSI coverage and protection if they are made redundant. A normal employee cannot pay Class S on the other hand.

Note that in the last few years the Government has increased the coverage for people on Class S greatly, so the difference is quite minimal.

Therefore, if your partner is self-employed, whether she pays Class A or S does not really matter. This is a Revenue issue and both options are legally sound.

INIS only cares about whether your partner is self-employed or not. It sounds like she is treated as being self-employed (since she uses an umbrella company to pay taxes, rather than having tax directly deducted in her payroll by the employer), so my opinion is that this is not allowed under Stamp 1G rules.

Makes sense, thanks @littlerr.

One thing that I don't understand and I wasn't able to find a good explanation for, is what "self-employment" even means? As I mentioned, she already has a contract with the company for 2 years, etc. and when she talked to the accounting company, they confirm that she can in fact work as a contractor with her Stamp 1G because she's paying PAYE tax, etc. and she is just a normal employee of the umbrella company.

Reading the Stamp 1G page (https://www.irishimmigration.ie/coming- ... holder-ha/) again, they mention that:

Operate a business on the basis of being self-employed.

But she's not in fact "operating a business" I guess?

What would be a good way to get more clarification on this? Should we email INIS?

[meself2]

Reading the Stamp 1G page (https://www.irishimmigration.ie/coming- ... holder-ha/) again, they mention that:
Operate a business on the basis of being self-employed.
But she's not in fact "operating a business" I guess?

Summary of Stamp 1G conditions tells it a bit differently.
https://www.irishimmigration.ie/registe ... on-stamps/

Summary of employment conditions for spouses and de facto partners of CSEP holders and researchers on a Hosting Agreement permission:

Permitted to work in the State without the requirement to obtain a work permit
Permitted to undertake courses of study in the State
Not permitted to establish or operate a business
Not permitted to be self-employed

Citizenshipinfo says that:
https://www.citizensinformation.ie/en/e ... tatus.html

You are a self-employed if you are engaged on a ‘contract for services’ – sometimes called a contractor.

This page also has a bunch of links towards guidance about how to define an employment status.

What would be a good way to get more clarification on this? Should we email INIS?

Why not? You lose nothing by sending them an email.

[meself2]

Why not? You lose nothing by sending them an email.

On the other hand, not sure if ISD is the department that has to be asked; would be reasonable to assume that self-employment status is being defined by another agency, eg Revenue.

[stbigo]

Yeah, what "self-employment" means in this context is not very well defined.

[stbigo]

Reviewing my emails with the accounting company again, this is the exact reply I got from them regarding Stamp 1G and self-employment:

Under the Umbrella Company Employee option all your taxes would be deducted through the PAYE system, and as an employee of the company you would not be considered to be self-employed or operating a business.

[littlerr]

If she is *employed* by the umbrella company, that is fine.

This means, the umbrella company is the contractor and the umbrella company invoices her actual company for any work she has done for the actual company.

It essentially means, the umbrella company is paying her salaries, not the actual company. The actual company pays the bill from the umbrella company.

[stbigo]

If she is *employed* by the umbrella company, that is fine.

This means, the umbrella company is the contractor and the umbrella company invoices her actual company for any work she has done for the actual company.

It essentially means, the umbrella company is paying her salaries, not the actual company. The actual company pays the bill from the umbrella company.

This is exactly what's happened. She signed a contract with the umbrella company, not the actual company. The umbrella company is then signed a contract with the actual company and they invoice the actual company. On her Revenue account, she's employed by the umbrella company, too.