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00 353 1 8077106 info@iconaccounting.ie

Frequently Asked Questions

Please find below some of the most frequently asked questions by our clients. Just click on the “+” button to reveal the answers.

Q. What is an Umbrella Company?

An Umbrella company is an intermediary between a contractor and a recruitment agency. The Umbrella Company manages all accounting duties and payroll for a contractor, ensuring tax compliance while carrying out a contract.

Q. What is the difference between a PAYE Umbrella Company,
a Director Umbrella Company and a Personal Limited Company?

PAYE Umbrella Company Director Umbrella Company Personal Ltd Company
Class A PRSI Class S PRSI – Director Class S PRSI
PAYE Tax Credit No PAYE Tax Credit No PAYE Tax Credit
No Ownership 16% Shareholder 100% Shareholder
Minimum Expenses Enhanced Expenses Enhanced Expenses
Fully Insured Fully Insured Requires Insurance
Payment to Personal Bank Account Payment to Personal Bank Account Payment to Business Bank Account
Management of banking, payments, taxes & compliance by Icon Accounting Management of banking, payments, taxes & compliance by Icon Accounting Full control of banking, payments, taxes & compliance by the contractor

Q. What are the costs of a PAYE Umbrella Company, Director
Umbrella Company and Personal Limited Company?

PAYE Umbrella Company Director Umbrella Company Personal Ltd Company
€25 per week if paid on a weekly basis €40 per week if paid on a weekly basis
€95 per month if paid on a monthly basis €140 per month if paid on a monthly basis Prices from €140+ VAT per month
Fully Insured Fully Insured Requires Insurance
No sign up or leaving fees No sign up or leaving fees Incorporation of the company €229 + VAT

Q. Can I change my solution under the Umbrella Companies during my contract?

Yes, contractors can change from PAYE Umbrella Company to Director Umbrella Company or Director Umbrella Company to PAYE Umbrella Company at any stage throughout the contract. Simply contact our office and our team will take care of the transition, updating all relevant details and notify your recruitment agency of the change.

Q. Do I have to take care of my own taxes under the Umbrella Company Solution?

No, Icon Accounting will take care of all taxes and payments for each contractor under both the PAYE Umbrella company and the Director Umbrella Company. We will register each contractor with Revenue and manage all invoicing, payroll and taxes for the full duration of the contract. With every payment, each contractor will receive a payslip showing a clear breakdown of payment and taxes.

Q. Do I need to set up a separate bank account under the Umbrella Company solution?

No, payment can be made to your personal bank account. A separate bank account is only required when setting up a Personal Limited Company.

Q. What are my legal/financial obligations to the Umbrella Company?

You are obliged to act in the best interests of the company at all times. Any contract you enter into on behalf of the company you must adhere to as per the signed contract. You are responsible for ensuring your expense claims are bona fida and wholly and exclusively for purposes of the contract.

Q. How long does it take to set up under the Umbrella Company?

Contractors have access to an immediate set up under the Umbrella Company.

Q. How long does it take to set up a Personal Limited Company?

A Personal Limited Company can be incorporated within 3-5 days. Icon Accounting will also manage registration of VAT for the company. A separate bank account must also be set up for the Personal Limited Company.

Q. How do I submit my timesheet?

Contractor can upload their timesheet on the Icon Accounting online portal I-Connect.
Personal login details are provided to each contractor. Once a timesheet is uploaded onto I-Conect , an invoice is sent to your recruitment agency requesting your payment.

Q. Who pays me as a daily rate contractor?

Icon Accounting will send your recruitment agency an invoice for your payment. Once your payment is received, Icon Accounting will immediately process your payroll, transfer funds to your bank account and email you your payslip.

Q. When do I get paid?

Icon Accounting guarantees all contractor same day processing on payment. Once funds are received from your recruitment agency we will immediately process them and transfer to your personal bank account.

Q. Can I claim tax relief on my business expenses and what can I claim?

Yes, contractor may claim tax relief on expenses that are wholly and necessarily incurred for the purposes of your contract. Please see our Business Expenses Guide. Your Icon Account manager will be able to advise you in relation to what you can claim.

Q. How do I submit my business expenses?

All business expenses receipts can be uploaded onto the I-Connect portal. For contractors who wish to post their receipts to our office, we will also send pre-paid envelopes to you.

Q. What happens when I finish the contract?

Following final payment from your recruitment agency, Icon Accounting will issue your P45. For contractors who set up under the Director Umbrella Company, Icon Accounting will also resign you as a Director of the Umbrella Company.