Find answers to Contracting queries, as we have put together a list of frequently asked questions and common concerns. Still unsure ? Simply contact our advisory team and we'll help.

As Ireland’s one-stop-shop accountancy and compliance services for contractors, we provide the most efficient contractor support through a professional and friendly service. With a full-time team of advisors, tax experts, payroll and a dedicated contractor support crew, Icon Accounting can offer you the expertise, knowledge and experience to fulfill all roles for contract tax, compliance and administration. Since our set up in 2008 we have helped over 3500 Contractors in the areas of IT, Engineering, Pharma and Life Sciences. 

Interested in learning more about Contracting - Check out our FAQ or contact our Team . We can Help.


What is an Umbrella Company?

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. 

Are the management fees under the Umbrella Company and Personal Limited Company tax deductible?

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

Can I change my set-up under the Umbrella Companies during my contract role?

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.

Do I have to manage 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. 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.

Do I need to set up a seperate 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.

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 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.

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

Contractors can be set-up immediately under the Umbrella Company. 

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.

How do I submit my timesheet?

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.

Who pays me as a daily rate Contractor?

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.

When do I get paid?

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.

Can I claim tax relief on business expenses?

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.

How do I submit my business expenses?

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.

What happens when I finish the contract?

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.

How does Contracting differ from permanent employment?


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. 


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.

Pattern dots Pattern dots

Got a Question?
Let us help

Icon Accounting, Columba House, Airside,
Swords, Co. Dublin, Ireland, K67 R2Y9
+353 1 8077106