Self-Employed? 8 questions to determine if you are self-employed or an employee

With the Irish government continuing its crackdown on bogus self employment, it’s more important than ever for freelancers to understand their employment classification.

This guide will help you determine whether you are truly self employed and what steps you need to take to remain compliant with Revenue. Here are 8 questions to ask yourself:

If you answer “yes” to most or all of the following questions, you are likely self-employed:

Do you have control over what tasks are done, where they are done, and when they are done?
Are you free to hire people on terms agreed by you to complete work you have undertaken?
Can you provide your services under different contracts to multiple customers at the same time?
Do you provide all the machinery/equipment necessary to complete the job?
Do you have your own separate insurance cover?
Do you control your own working hours?
Do you have a fixed base where you store materials/equipment?
Do you stand to profit from good performance of contracts and are also exposed to financial risks if work is poor?

What if you answered “No” to some questions?

If you answered “no” to several of these, your situation may need to be reviewed in detail to determine whether you are an employee rather than self employed.

The Revenue Commissioners and the Department of Social Protection use these criteria to assess employment status and misclassification can lead to tax penalties or loss of employment rights.

I am self-employed – What do I need to do now?

Starting your own business can be exciting but also challenging. Here are the key steps to ensure compliance:

1. Register your Business Name

If you are trading under a name other than your own, you must register your business name with the Companies Registration Office (CRO).

2. Register for taxes with Revenue

You must register for Income Tax (and possibly VAT) with Revenue.

If your annual turnover exceeds €45,500 for services or €85,000 for goods, you must register for VAT.
You will also need to pay PRSI (Class S) if your annual income is €5,000 or more.

3. Open a business Bank Account

Keeping your business finances separate from personal finances is essential for tax compliance and financial management.

4. Get the right Insurance Cover

Consider professional indemnity insurance, public liability insurance, and income protection to safeguard your business.

5. Explore grant funding & finance options

There are various government grants and funding schemes available for self-employed individuals, including:

Local Enterprise Office (LEO) grants
Microfinance Ireland loans
Start-up tax reliefs

Final Thoughts

Navigating self employment can be complex, but ensuring you meet the correct criteria will help you avoid tax penalties and access the right benefits.

If you’re unsure about your status, consulting a qualified accountant or tax advisor is always a smart move.

Looking for an accountant?

Contact TaxAssist Accountants for a free, no-obligation consultation to get a fixed fee quote

1800 98 76 09

Or contact us

Last updated: 7th August 2025