contracting where you have to set up your own company

JakeArmitage

I'm considering applying for a job in dublin that pays 35 euro an hour, if I got the job I would have to set up my own solocheck company. Is there ways of saving of tax on these type of contracts. What would I net if my gross was 6k a month with these type of contracts?

davo10

JakeArmitage wrote: »

I'm considering applying for a job in dublin that pays 35 euro an hour, if I got the job I would have to set up my own solocheck company. Is there ways of saving of tax on these type of contracts. What would I net if my gross was 6k a month with these type of contracts?

Talk to an accountant. Being self employed has its advantages but also disadvantages. The disadvantages are: No security under employment law, no holiday pay, no entitlement to sick leave benefit, no social welfare entitlement when unemployed, you have to pay an accountant each year to do your tax returns unless you have the knowledge to do them yourself, you will be a contractor and your contract will no doubt have a clause allowing the employer to terminate giving a certain amount of notice.

Musicman2000

davo10 wrote: »

Talk to an accountant. Being self employed has its advantages but also disadvantages. The disadvantages are: No security under employment law, no holiday pay, no entitlement to sick leave benefit, no social welfare entitlement when unemployed, you have to pay an accountant each year to do your tax returns unless you have the knowledge to do them yourself, you will be a contractor and your contract will no doubt have a clause allowing the employer to terminate giving a certain amount of notice.

The op might be better setting up an umbrella company . He or she will then qualify for social welfare as they will be a PAYE.

uck51js9zml2yt

Musicman2000 wrote: »

The op might be better setting up an umbrella company . He or she will then qualify for social welfare as they will be a PAYE.

There are companies such as fenero who will do it.
As you said, best way to go!

Stheno

Kinley Lively Mush wrote: »

There are companies such as fenero who will do it.
As you said, best way to go!

But as an employee jn that structure they will have to pay 10% employers prsi

uck51js9zml2yt

Stheno wrote: »

But as an employee jn that structure they will have to pay 10% employers prsi

I got them to do the maths for me a while ago as director and umbrella employee. It wasn't a lot in it and the employee gets full prsi paid for social welfare.

JakeArmitage

JakeArmitage wrote: »

Is there ways of saving of tax on these type of contracts.

No, only legitimate expenses can be taken. 3/4 years ago there was revenue focus on contractors claiming expenses that weren't legitimate.

JakeArmitage wrote: »

What would I net if my gross was 6k a month with these type of contracts?

Taking a contract at €35/hour won't yield €6k/month.

(€35 x 39 (hours) x 46 (weeks) ) / 12 (months) = €5232

Kinley Lively Mush wrote: »

I got them to do the maths for me a while ago as director and umbrella employee. It wasn't a lot in it and the employee gets full prsi paid for social welfare.

If you are going contracting with the view that you will need social welfare than contracting isn't for you imo.
You'd also want to be on social welfare a good few weeks to clawback the extra tax you paid to qualify, total waste of money.

uck51js9zml2yt

Augeo wrote: »

No, only legitimate expenses can be taken. 3/4 years ago there was revenue focus on contractors claiming expenses that weren't legitimate.




Taking a contract at €35/hour won't yield €6k/month.

(€35 x 39 (hours) x 46 (weeks) ) / 12 (months) = €5232




If you are going contracting with the view that you will need social welfare than contracting isn't for you imo.

It works if you use an umbrella company

Kinley Lively Mush

Kinley Lively Mush wrote: »

It works if you use an umbrella company

What works?
You pay extra tax, it's a fairly simple concept.

Define how much "It wasn't a lot in it" that is in monetary terms.