Accounting advice

sanchito

Hello Irish guys,

I have following situation:

I am IT contractor invoicing from within European Union to Irish IT company. My contract is currently for 6 months and I am already on 4th month now.

I invoice monthly with 0 VAT rate and specify that reverse-charge applies, it is completely legal to invoice from one EU country to another so I am fine. Irish company now came to me and said that after 6 months I would have to create Irish limited company.

My question is - if I create Irish limited company and would like to invoice myself as before (to another EU country) - what are the limitations ?

This is what I know:
* if getting services from another EU country (as Irish ltd) I would have to register for VAT
* I can invoice from another EU country my Irish Ltd unless I have tax residency in Ireland (which is 180 days per year, two consecutive years it is I think 280)


Thanks

Jirka

sanchito

Is it possible to have LTD company with only one director or is the secretary required ? Also I would not like to have any payroll in Ireland.

Jirka

pilly

sanchito wrote: »

Hello Irish guys,

I have following situation:

I am IT contractor invoicing from within European Union to Irish IT company. My contract is currently for 6 months and I am already on 4th month now.

I invoice monthly with 0 VAT rate and specify that reverse-charge applies, it is completely legal to invoice from one EU country to another so I am fine. Irish company now came to me and said that after 6 months I would have to create Irish limited company.

My question is - if I create Irish limited company and would like to invoice myself as before (to another EU country) - what are the limitations ?

This is what I know:
* if getting services from another EU country (as Irish ltd) I would have to register for VAT
* I can invoice from another EU country my Irish Ltd unless I have tax residency in Ireland (which is 180 days per year, two consecutive years it is I think 280)


Thanks

Jirka

It doesn't matter where you're resident if you have a Ltd. company. The company operates exactly the same as any other Irish company. Not sure why they want you to set up an Irish company but if they're insisting I suppose you'll have to. Quite a bit of work involved.

sanchito

Thanks for reply, what accounting software would you guys recommend ? There will be just two invoices per month - one to invoice the Irish company second is the incoming invoice for service of myself.

sanchito

Another question - what would be the suggested amount I should pay to file the taxes by the end of the year ? Given the information above (no payrolls - if possible) two invoices a month. I would like to make the accounting myself with probably Bullet HQ software.

PARlance

My best advice would be to go to a search engine and type "IT Contract Accounting". There are plenty of companies out there that charge small enough fees. Maybe ask colleagues who they use and recommend.

I was an accountant in a previous life and recently set up my own company. I got someone else to do it, it just takes the hassle out of it. But shop around, there are some cowboys out there. I worked with about 30 IT contractors in that previous life... I'm surprised the Revenue Commissioners are still turning a blind eye to it (employee vs contractor in IT).

irlcncrk

Hi,
They want you to go limited as I presume you're currently billing them as a self employed contractor and they don't want hassle from the revenue thinking that you should be documented as an employee with all that that involves.

In the short/medium term take a look at umbrella company services, as has already been mentioned. They'd handle all the revenue returns, vat issues and payroll for a monthly fee. They'd also give you a good overview on expenses that can be claimed.

If your contract were to be long term your own limited company may well be a better option, umbrella company could sort that for you also.

I've no recommendations for you, maybe someone on here could offer suggestions. There's always good old google!

Best of luck.