Becoming a self-employed contractor

Q: I am currently an employee, but I am thinking of becoming a self-employed contractor in the New Year. I have heard that this will affect my social welfare entitlements, should I need to draw on them. Is this correct?

6th January 2017

If you are self employed then you will pay PRSI at Class S.

Class S contributions only cover you for a limited number of payments. In general, they do not cover you for any short-term payments including, illness and disability payments. They do not cover you for Jobseeker's Benefit.

If you satisfy all the other conditions, Class S contributions can entitle you to:

  • Maternity Benefit
  • Adoptive Benefit
  • Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
  • State Pension (Contributory)

Budget 2017 did extend the payments which are covered by Class S PRSI. Self-employed persons will have entitlement to the Invalidity Pension and Treatment Benefit Scheme from 2017 onwards.

The Treatment Benefit Scheme provides certain dental, optical and aural services to people who have made qualifying PRSI contributions.

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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Call us today to make an appointment at your local office

1890 98 76 09

Or submit an enquiry