15 Tips for The self-employed in Ireland

Here's a mix of things you could do to improve your wealth, look after your health (especially your mental health!), increase opportunities for more business, protect yourself and build a future of financial security. I hope there are 1 or 2 in here that give you that a-ha moment...if only to remind you what you probably already knew.

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1. Understand the Tax System

Seems obvious but here me out. How much you earn, and what you do, will determine whether you charge VAT or not. How you’re set-up (sole trader or limited company) will determine how much tax you pay, but more importantly, how much tax you can save. For example, did you know the first €1000 you take from your company every year can be taken tax free under the Small Benefit Scheme. I just saved you €520 in tax. We’ve got more great advice like this at Contracting PLUS .

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2. Keep Detailed Financial Records

Track all income and expenses meticulously. Its impossible to remember what you might have spent money on 30 days ago. Use accounting software and expense recording software so you can take a photo on the go then recycle your receipt to simplify the process and stay organised for tax time.

Our clients get this software for free.

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3. Consider Professional Indemnity Insurance

Depending on your industry, you may need professional indemnity insurance to protect against potential claims from clients. Even if its not an industry necessity, your bigger clients will look more favourably on you and be appreciative of this cover. It is an indicator of your professionalism and shows you have confidence in your abilities.

When you’re a client of ours, we give you commercial insurance cover for free. Its available to most freelancers, but our team will let you know on a discovery call.

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4. Set Up a Pension Plan

Consider starting a personal pension plan, as freelancers don't have the benefit of employer contributions. Tax relief on pension contributions can also be a significant advantage. When you operate through a personal company, there's a bigger tax saving. So if you put €500 a month into a pension, you’ll pay up to €720 less tax every year in a company than you do as a sole trader. All our clients can have as many financial planning reviews as they like with our Contracting PLUS Financial business.

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5. Network Regularly

Attend industry events, join local business groups, and participate in online communities to expand your network and find new opportunities. Or even to have the support of other self-employed professionals.

Networking to generate business is important. But also networking with your peers to create support communities. Join us online or in person at our regular Self Employed Sessions. Keep an eye on our LinkedIn account if you're not a client.

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6. Understand Your Rights and Obligations

Know your rights as a freelancer under Irish law, including issues like late payments and contractual obligations.

You are entitled to be paid for your services in B2B transactions within 30days unless the contract states otherwise.

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7. Establish Clear Contracts

Always use written contracts that outline the scope of work, payment terms, deadlines, and any other important details. This helps to avoid misunderstandings. Having a good contract is so important. We can give you a great template to use with your client. Arguments only arise when expectations aren't aligned.

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8. Consider a Business Name

If you want to create a more professional image, consider registering a business name with the Companies Registration Office (CRO). There’s no protection for a business name so someone else could also register that name. But if you have a company, no one else can set up a company with the same name as yours.

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9. Separate Business and Personal Finances

Open a separate bank account for your freelance business to simplify bookkeeping and financial management. Online banks like Revolut make this so easy now, so there’s no excuse.

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10. Set Realistic Rates

Research industry standards and set rates that reflect your experience and the value you provide. Don’t undervalue your services. Proper pricing is the best way to put more money in your pocket. It will earn you more than any tax saving. Try it. Increase your price by 10% on your next quote and see what happens. If you'd like more guidance on this, get in touch with me.

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11. Plan for Downtime

Freelancing can be unpredictable. Plan for potential periods of downtime by building a financial buffer or diversifying your income streams. Theres a rule of thumb that you should ideally have at least 3 months’ worth of costs put aside. If you don’t have that now, don’t worry. Start small by putting a bit into a Revolut vault every month.

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12. Invest in Professional Development

Stay up-to-date with the latest trends and skills in your industry by investing in courses, workshops, or certifications. They’re tax deductible too. Join our Self-Employed Sessions to get free training/information relevant to you as an independent worker.

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13. Leverage Social Media

Use social media platforms like LinkedIn, TikTok, and Instagram to showcase your work, connect with potential clients, and build your brand. If you’re like me and are allergic to social media, you need to outsource it. And the cost of any service you pay for to invest in your business is a tax deductible expense.

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14. Take Care of Your Mental Health

Freelancing can be isolating and stressful. Life can be stressful. What drains you? Try do less of that. What energises you? Try do more of that. Make time for self-care, establish boundaries between work and personal life, and seek support if needed.

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15. Consider Co-Working Spaces

If working from home feels isolating, consider renting a desk in a co-working space. These spaces can also be great for networking.

Contracting PLUS are more than accountants. We're advocates for all self-employed professionals. Join our community and grow.