Considering setting up as a Contractor?

The amount and range of people considering contracting seen massive growth in recent times, a report on Working Hours carried out by Morgan McKinley found that more than half of working professionals in Ireland want to move away from traditional working patterns, choosing jobs that enable them to work more flexibly and prioritise commitments outside of work.

That being said, let’s find out what exactly being a contractor entails, and more importantly, whether it’s right for you?

What is a Contractor?

Terms such as freelancers, self-employed professionals, digital nomads, and contingent workers all essentially mean the same thing – that someone is providing a specific service or expertise to one or many clients on a flexible basis.

A contractor is ultimately self-employed, and operate through a personal limited company structure, as part of a PAYE umbrella company, or as a Director Umbrella Company.

What is a Personal Limited Company?

For professionals whose vision is to contract long term, setting up a Personal Limited Company offers the opportunity to operate in the most tax efficient way possible.

A Personal Limited Company provides the ability to employ staff or sub-contractors, claim business expenses, pension plan and have greater control over the management and frequency of wages and salaries.

To see more information on what is required to set up a personal limited company, or express company incorporation service, click here.

What is a PAYE Umbrella Company?

A PAYE Umbrella Company is an intermediate company responsible for deducting payroll taxes on behalf of a Contractor.

All payments are processed via the PAYE system with accurate calculations and deductions of tax, PRSI, and USC to ensure you're fully compliant with no hidden tax surprises.  

This is an ideal solution for Professional Contractors and freelancers who are contracting on short term projects or those wishing to maintain Class A PRSI Contributions.

To see more on what services we can offer you, click here.

What is a Director Umbrella Company?

A Director Umbrella Company is an intermediary company responsible for deducting payroll taxes on behalf of a Contractor.

All payments are processed via the PAYE system with accurate calculations and deductions of tax, PRSI and USC to ensure you're fully compliant with no hidden tax surprises.

As a Director of the Umbrella Company, an Income Tax Return must be filed, but don't worry, as we'll take care of this for you.

This is an ideal solution for Professional Contractors and freelancers who wish to maximise their take home pay and pay Class S PRSI Contributions.

See how we can help you here.

Why Contracting?

A major attraction is having more control over your career, choosing the companies you want to work with, and the types of projects or roles. There is often the opportunity to work with exciting brands and businesses.

A big plus is the freedom to work when and where you want, and not having to commit to being in an office for 40 or more hours a week.

Some contractors do work normal 9-to-5 hours, and many work an equivalent, splitting their day to allow for school runs or other commitments or interests. Others work part time all year round or full time for nine months of the year, taking the summer off.

Can I be a Contractor?

In Ireland, professional contractor roles continue to be prominent in IT, engineering and pharma; however, we are now also seeing increasing roles in the finance, education, design, sales and travel sectors…to name a few.

We help contractors in almost every sector, excluding dentists, lawyers and doctors.

What’s Next?

So, what’s stopping you? In the end, we only regret the chances we didn’t take

We deal with entrepreneurial people every day and want to assist you in your journey to becoming a contractor. If you’re eager to succeed but nervous about committing, we want to be here to support and inspire you with your next move.

Get started here

For more information, please do not hesiate to contact us on 01 8077106 or email info@iconaccounting.ie