IT Sole trader... no jobs?

sutty

Hello all, been looking for a job for the past month. Been out of work for 3 months so far. My old job didn't want to deal with sole traders any more. But I became one to work with them in the first place 3 years ago :rolleyes:
Anyway, going limited doesn't seem to be an option due to costs to setup and pay accountants. Is there options out there for sole traders? All the please I apply for contracts with dont seem to want to deal with sole traders any more.

ntlbell

sutty wrote: »

Hello all, been looking for a job for the past month. Been out of work for 3 months so far. My old job didn't want to deal with sole traders any more. But I became one to work with them in the first place 3 years ago :rolleyes:
Anyway, going limited doesn't seem to be an option due to costs to setup and pay accountants. Is there options out there for sole traders? All the please I apply for contracts with dont seem to want to deal with sole traders any more.

Can you get an "off the shelf" company for 200/300 euro's?

unless you're bringing in some serious money just do the tax yourself

Eoin

Or work for an umbrella company

snellers

setting up own company is very very easy and cheap as well - if you feel uncomfortable about doing the stages yourself there are loads of companies out there who for a few euro will do it for you (still not expensive)

sort out your own tax

v.easy and stress free - just make sure you are registered with revenue...etc so no nasty bills in the future

bite the bullet and go set yourself up - no excuses!!

barkingmadlolly

I used to work in IT recruitment, a lot of companies wont deal with sole traders at all. There are some very good Umbrella companies out there and others with no set up fees. I know one in particular who a couple of friends work through and if you want the deatils just PM me

fuscan

Most companies won't touch sole traders because of indemnity and other issues. I have used cxcglobal in the past and have found them to be excellent. eventually you would be better off setting up your own company and using an accountant as it it would cost you less but in the meantime they are an excellent option

BostonB

sutty wrote: »

...Anyway, going limited doesn't seem to be an option due to costs to setup and pay accountants. ...

Its not that expensive...

Jackz

And instead of being an IT nerd your now "Director of my own company" in coppers.

trellheim

As someone with lots of experience here ... you just look unprofessional to the guy looking for a contractor.

Feelgood

Prima - www.prima.ie

Limited company incorporation is about €400, monthly management fees are about €140...

All of which can be claimed back in expenses in October!!.

snellers

seems damn expensive for private limited company setup(although I have only set companies up in the UK so far) - cost me approx €150 to setup which included articles of association...etc...etc and nothing at all thereafter. I used an online company and filled in details online - everything above board.

what's with the management fees? (I might be stupid here but don't understand what €1680 per year management fees are all about?) Can someone enlighten me please

Feelgood

snellers wrote: »

what's with the management fees? (I might be stupid here but don't understand what €1680 per year management fees are all about?) Can someone enlighten me please

Management fee is basically covers invoicing for your wages, calculation of your monthly tax and expenses and submission of all tax related stuff to the revenue. Is a bit steep alright, though if you did it yourself you would still have to pay an accountant around €1000 in October to do your annual returns. Annual returns are covered by the management fee too.

The thing about the limited company is that while most IT contractors use them for daily rate contracts etc, you could also use it for selling products or say running a shop. The management fee would also cover VAT returns in that case.

It can be all claimed back as a legit expense anyway, so it doesn't actually work out that expensive. Saves you about 5-8 hours a month in clerical overheads too.

ringleader

Feelgood wrote: »

Is a bit steep alright, though if you did it yourself you would still have to pay an accountant around €1000 in October to do your annual returns. Annual returns are covered by the management fee too.

I get my (sole trader, income) tax done for €250 a year with a company in Tallaght. You can write off accountancy fees anyway.

The only other thing with Limited versus Sole Trader is all the paperwork.
With a Ltd Co, you've about 12 returns to do a year, and a whole lot of paperwork to set up and, in particular, shut down.
For shutting down, for example, you've to get a statement from everyone you've ever traded with to say you don't owe them money.

Stick with Sole Trader especially if you're below about €50,000 a year income.
For larger contracts, go with Ltd but discuss it with your accountant first - they'd know better than you what the standard practice is.