2 months contract - Self assessment or umbrella company

Monfreid

Hello,
I have been offered a contract role for 1 or 2 months max. We have agreed on the daily rate but they told me that I will have to look after my tax return as it won’t be a PAYE payment.
I’m a bit confused by that and don’t want to make any mistake.
It’s only for 2 months max, 240€ per day.
I don’t mind being a contractor until I find a permanent role but don’t want to have to go through the hassle of registering for self assessment just for 2 months as I prefer to have a PAYE umbrella company instead. (I want keep up my PRSI stamps and my tax credits)
What are your thoughts on that?
Thanks

wiggle16

If your total pay for the two months will exceed €5000 then you will have to register for self-assessment. If not, you can file on a Form 12 like a PAYE employee without registering. You didn't specify how many days a week you would be working over these 2 months but obviously if it will be five days a week at €240 a day for two months you'll be over the €5000 limit.

What do you mean when you say a PAYE umbrella company?

Mrs OBumble

wiggle16 wrote: »

If your total pay for the two months will exceed €5000 then you will have to register for self-assessment. If not, you can file on a Form 12 like a PAYE employee without registering. You didn't specify how many days a week you would be working over these 2 months but obviously if it will be five days a week at €240 a day for two months you'll be over the €5000 limit.

What do you mean when you say a PAYE umbrella company?

Not true - the OP can and should use an umbrella company for something this short, and this will allow them to keep their stamps up, too.

An umbrella company basically employs you, but does so from the proceeds of what you are invoiced for: they pay the employer PRSI, any other statutory costs (eg annual leave equivalent), take out their fee - and what's left is your salary.

Monfreid

Good news, they have agreed to pay me through a paye umbrella company in the end 🙂ðŸ‘