CXC

flash harry

anyone know how these guys operate - they provide company services/payment services to contractors (especially in IT).

What do they charge? why would you use them?

FH

Jagera

Their charge is dependant on your income and is normally capped at something like 220 EUR per month for the umbrella service. They offer a decent service - having spoken to them, but I haven't used them so can't give any real experience.

Did you call them?

allibastor

i have done work with them about three years ago for a year and a half.

very helpful and good. they place you as a shared director of a company that has only employers. it is good if you are going to be sub-contracted in a company and will be submitting timesheets.

i think they have a cap of 5% of your net wage, but it has a montly cap of 200 or something like that. i founf they also keep excellent record of your tax and are helpful in highlighting areas where you can claim taz back etc.
overal very good experiences with them.

twilight_singer

If you are going to be contracting there are a few other companies that do the same thing as CXC that you should also check out. Icon Accounting, Prima and Fenaro are some of the umbrella company providers that I checked out before deciding who to go with. They all pretty much do the same thing - invoice the company you are contracting for at the end of the month and then pay you from whats left over minus tax,prsi,usc etc plus their own fee

JJJJNR

They are very good, I've used them for years, prima are also very good as friends have used them also.

flash harry

thanks guys.

Why would you use them is really what I am asking?

Like you are taxed as a director so that's slighltly better arrangement BUT what are the other benefits that justify the fees involved?

FH

allibastor

the main reason you would use them, say versus going in as a sole trader is that they will ensure you are fully tax compliant. they keep all your records for you, ensure that all your expenses, costs, etc are filled accordingly.

they will also ensure that you are paying prsi and other contributions.
the main difference between these lads and being a sole trader is that if you become un-employed you were still classed as a prsi paying director and can get dole. also if you can do all the book keeping yourself you should be doing accountancy.

as sadi before for the fee, i think is 200 a month cap or 40 a week it is worth it as you can put down expenses such as travel which will lower your tax rate.

Jagera

flash harry wrote: »

thanks guys.

Why would you use them is really what I am asking?

Like you are taxed as a director so that's slighltly better arrangement BUT what are the other benefits that justify the fees involved?

FH

It's a managed service. So they do all the financial work for that fee. tax, expenses, P45, payment slips. they can also extend the service to pension advice and stuff like that (more costs involved).

All of these things can be done yourself. All of them would take 1-3 hours a month, then more for the annual tax return. you're paying someone to do that for you, and with better tax compliance & experience.

I did a 12 month contract a few years back, I did my own and I found it to be a pain. However, If I were a long term contractor, then over time i would expect to get a good handle on things and do it myself.

Also, remember their fee is a taxable expense, so technically you aren't paying the full 200 odd out.

Stheno

allibastor wrote: »

they will also ensure that you are paying prsi and other contributions.
the main difference between these lads and being a sole trader is that if you become un-employed you were still classed as a prsi paying director and can get dole. also if you can do all the book keeping yourself you should be doing accountancy.

I don't think that's correct as a director you pay a different rate of PRSI than a PAYE employee and it affects your entitlements to JSB

drrkpd

I have used icon and found them excellent. Flat rate fee not percentage like some companies and great service. Explained pros and cons of director or employee of umbrella and can set you up as limited company if more efficient. Have had emails answered at 21.00 very impressed

srsly78

Limited company is not the same as sole trader. Don't get confused.

drrkpd

srsly78 wrote: »

Limited company is not the same as sole trader. Don't get confused.

you are absolutely right -have changed it

allibastor

Stheno wrote: »

I don't think that's correct as a director you pay a different rate of PRSI than a PAYE employee and it affects your entitlements to JSB

to be fair i didnt say i know what the difference is, just that they do get you to pay PRSI, as either an employer or employee. it is true that you can get dole afterwards, has happened to me and all my stamps were correct for my employment period with CXC.

i also got my full entitlement to JSB.

TheRedOctober

Ive got a contract for the first time and am looking around at umbrella companies. How does the CXC fee actually work out? There seem to be different maximum caps on how what they charge - their website says its 5% of what I earn subject to a max cap of between €125 and €300 per month - that's a pretty big difference! how would you know what exactly you are going to pay each month? confused.com Anyone using them who can shed any light?

c montgomery

allibastor wrote: »

to be fair i didnt say i know what the difference is, just that they do get you to pay PRSI, as either an employer or employee. it is true that you can get dole afterwards, has happened to me and all my stamps were correct for my employment period with CXC.

i also got my full entitlement to JSB.

Incorrect, as a director you are on the same rate of PRSI.This means that you still pay the same rate of prsi that you would as a regular employee would however your employer will not pay any prsi for you as in effect you dont have an employer. This is 10.75%.
Your stamps are based on your and your employers prsi contributions from 2 years ago so maybe this is why you qualified for dole.

In relation to cxc i have been with them for a while and find them excellent, only takes about 5 min of my time per month. A bit expensive but there worth it if ask me, no hassle so far with them.

c montgomery

TheRedOctober wrote: »

Ive got a contract for the first time and am looking around at umbrella companies. How does the CXC fee actually work out? There seem to be different maximum caps on how what they charge - their website says its 5% of what I earn subject to a max cap of between €125 and €300 per month - that's a pretty big difference! how would you know what exactly you are going to pay each month? confused.com Anyone using them who can shed any light?

They will agree to 5% up to a max of 200 from my experience.

sartay

c montgomery wrote: »

Incorrect, as a director you are on the same rate of PRSI.This means that you still pay the same rate of prsi that you would as a regular employee would however your employer will not pay any prsi for you as in effect you dont have an employer. This is 10.75%.
Your stamps are based on your and your employers prsi contributions from 2 years ago so maybe this is why you qualified for dole.

In relation to cxc i have been with them for a while and find them excellent, only takes about 5 min of my time per month. A bit expensive but there worth it if ask me, no hassle so far with them.

I'm not sure that's quite correct just from what I've learned from my umbrella company providers - unless I've misunderstood your post. The rate of PRSI is not quite the same for directors and employees. Directors pay "employees PRSI" at 4%. Employees also pay "employees PrSI" at 4% but the first €127 of their earnings each week are exempt from any "employees PRSI". So employees pay less "employees PRSI" than directors do.

Obviously you have to weigh that up then against the "employers prsi" cost - the 10.75% one - and the PAYE tax credit which directors dont get - to figure out which one is more beneficial overall.

A decent accountant would charge €150/€200 + VAT per month to do a much better job than CXC will do. I would advise anyone going contracting to look at the ltd company route and compare that to CXC.

TheRedOctober

c montgomery wrote: »

They will agree to 5% up to a max of 200 from my experience.

Thanks. what package are you on with them? do you know if the max charge vary depending on what you are on?

c montgomery

RoverJames wrote: »

A decent accountant would charge €150/€200 + VAT per month to do a much better job than CXC will do. I would advise anyone going contracting to look at the ltd company route and compare that to CXC.

CXC offer the LTD company route for 200 a month, thats the deal im on.

c montgomery

sartay wrote: »

I'm not sure that's quite correct just from what I've learned from my umbrella company providers - unless I've misunderstood your post. The rate of PRSI is not quite the same for directors and employees. Directors pay "employees PRSI" at 4%. Employees also pay "employees PrSI" at 4% but the first €127 of their earnings each week are exempt from any "employees PRSI". So employees pay less "employees PRSI" than directors do.

Obviously you have to weigh that up then against the "employers prsi" cost - the 10.75% one - and the PAYE tax credit which directors dont get - to figure out which one is more beneficial overall.

Maybe not 100% correct, i cant quite remember however if you are a director of a limited company and lose your contract (job) your dole entitlement will be based on prsi contribution from 2 years ago. On the s class of prsi that you will be on as a director you will noy qualify for dole.

The best thing to do is call cxc and arrange a meeting.

TheRedOctober

RoverJames wrote: »

A decent accountant would charge €150/€200 + VAT per month to do a much better job than CXC will do. I would advise anyone going contracting to look at the ltd company route and compare that to CXC.

Still googling here! Came across Fenero - they do ltd company packages for €95 plus VAT per month. Sounds pretty good. They seem to be accountants that do a lot of work with contractors.

Why do you reckon an accountant would be better than CXC? did u have a bad experience of them?

c montgomery

TheRedOctober wrote: »

Still googling here! Came across Fenero - they do ltd company packages for €95 plus VAT per month. Sounds pretty good. They seem to be accountants that do a lot of work with contractors.

Why do you reckon an accountant would be better than CXC? did u have a bad experience of them?

Wow, thats a great deal. Might look at them myself.

sartay

c montgomery wrote: »

Maybe not 100% correct, i cant quite remember however if you are a director of a limited company and lose your contract (job) your dole entitlement will be based on prsi contribution from 2 years ago. On the s class of prsi that you will be on as a director you will noy qualify for dole.

Yeah youre right on that side of things for sure as far AFAIK. I think you can still possibly get the dole even with class s prsi but you have to have a means test and from what ive heard from a freind who went through it, it took quite a while which could be a problem when you need to get some money coming in quickly if you lose a contract. So def worth being aware of in advance.

TheRedOctober

TheRedOctober wrote: »

...........

Why do you reckon an accountant would be better than CXC? did u have a bad experience of them?

I have a number of acquaintances who were with CXC and who then went the Ltd company route coupled with an accountant to prepare the various annual returns etc. The service provided by the accountant was deemed better by most of them. I know one or two people who got stung by using poor accountants too though, as in unexpected tax due at year end.

c montgomery wrote: »

CXC offer the LTD company route for 200 a month, thats the deal im on.

Fair play, I'd sooner go with a decent accountant personally