FAQs

An Umbrella company is an intermediary between a contractor and a recruitment agency. The Umbrella Company manages all accounting and payroll duties for a contractor and ensures tax complaincy while they are completing contract work. 

Yes, the managements fees are tax deductible up to 52%, depending on your personal tax credits. 

Yes, contractors can change their solution from a PAYE Umbrella Company to a Director Umbrella Company or vice versa at any stage throughout your contract role. Simply contact our office and our team will take care of the rest.

No additonal charges will apply. 

No.

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. As part of our fully managed service, we will offer full assistance to Contractors registering 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.

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

You are obliged to act in the best interests of the company at all times and you must adhere to any contract you have entered on behalf of the company 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.

Contractors can be set-up immediately under the Umbrella 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.

All you need to do is upload your timesheet on the Icon Accounting Portal. Personal login details are provided to each contractor when they sign up to our services.

Once a timesheet is uploaded onto the Contractors Portal, an invoice is sent to your recruitment agency requesting your payment.

As the Contract for Services is between your Limited Company and the agency or client, the client will pay you.

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

Icon Accounting guarantees the same day processing of payments. Once funds are received from your recruitment agency, we will immediately process your payroll and transfer the funds to your personal bank account.

Yes, contractors may claim tax relief on expenses that are wholly and necessarily incurred for the purposes of your contract. To learn more about the expenses you can claim, please see our Business Expense Guide. In addition, your Payroll Account Manager will always be able to advise on any business expense queries you may have.

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

Following final payment from your recruitment agency, Icon Accounting will simply inform Revenue that you have now ceased contracting. This will allow Revenue to update your MyAccount. For contractors who set up under the Director Umbrella Company, Icon Accounting will also resign you as a Director of the Umbrella Company.

Contract

You will have a Contract for Services in place between your limited company and your client/agency. How this differs is that you ‘provide services’ as a consultant to a business rather than being in ‘the service’ of your employer like a traditional employee. 

Rate of pay

As an employee you will receive a fixed salary, however as a contractor you will get a set daily rate of pay. This would usually be at a higher rate than you would receive for the equivalent role in permanent employment, allowing Contractors to generally have a higher net take home pay.

Holiday Pay & Sick Pay

When contracting you must bear in mind that your daily rate includes your holiday and sick pay entitlements. You should budget for this when calculating your incoming and outgoings. 

Business Costs

Whilst an employee, all the costs of your training, business equipment, etc may have been incurred by your employer. As a contractor, you must incur these yourself. However, these cost are claased as an allowable expense and are tax deductible. 

Security

As an employee you will have protection of various employment laws, however as a contractor you would be governed by Corporate Law. Contractors may be first to be laid off in a downturn.