would you work on contract as Ltd company

Sagitt

Recruiter has offered me an interview for a role in data analytics. This is temporary position where I would have to set up Ltd company.

So far in my professional life I worked as paye employee and have no clue of pros and cons working on contract, let alone setting up Ltd company.

There is daily rate on this role which looks good if I looked at this from PAYE employee perspective but I don't have a clue if this is attractive from contractor on Ltd point of view. What are tax implications / other things to consider if going on contractor route? How do you compensate volatility of the situation (no permanent contract, mortgage to pay from one income) with money that you request? Is it non-starter or would you consider?

BTW, I'm not running away from my current role which looks stable but cannot see myself getting promoted and taking more money neither.

thanks

blindside88

Im by no means an expert but there are many advantages and disadvantages to going out on your own as a limited company. For example some of the advantages, you can write a number of things off against your tax bill such as fuel costs, a portion of ESB and internet (if using a home office). You can most likely get a far higher income as a contractor. The disadvantages are that you are not currently entitled to social welfare if let go if you are self employed. you have to factor in that you currently have 4 or 5 weeks paid holidays per year in the current job which you you will need to make allowances for in the contractor rate. You will also need to pay an accountant to do your books and you will need to keep funds to pay your end of year tax bill. There is also the initial start up costs which aren’t huge but still need to be factored in.

Best of luck with what ever you decide

wally1990

Sagitt wrote: »

Recruiter has offered me an interview for a role in data analytics. This is temporary position where I would have to set up Ltd company.

So far in my professional life I worked as paye employee and have no clue of pros and cons working on contract, let alone setting up Ltd company.

There is daily rate on this role which looks good if I looked at this from PAYE employee perspective but I don't have a clue if this is attractive from contractor on Ltd point of view. What are tax implications / other things to consider if going on contractor route? How do you compensate volatility of the situation (no permanent contract, mortgage to pay from one income) with money that you request? Is it non-starter or would you consider?

BTW, I'm not running away from my current role which looks stable but cannot see myself getting promoted and taking more money neither.

thanks

Give this crowd a shout https://www.contractingplus.com

They will explain everything about contracting via a Ltd company

Eg pros cons
What contracting is
How it works
Why people do it v PAYE employment
Legal side of things
Financial advice

Sagitt

Sagitt wrote: »

Recruiter has offered me an interview for a role in data analytics. This is temporary position where I would have to set up Ltd company.

So far in my professional life I worked as paye employee and have no clue of pros and cons working on contract, let alone setting up Ltd company.

There is daily rate on this role which looks good if I looked at this from PAYE employee perspective but I don't have a clue if this is attractive from contractor on Ltd point of view. What are tax implications / other things to consider if going on contractor route? How do you compensate volatility of the situation (no permanent contract, mortgage to pay from one income) with money that you request? Is it non-starter or would you consider?

BTW, I'm not running away from my current role which looks stable but cannot see myself getting promoted and taking more money neither.

thanks

Would I? If the money was right, of course!. Have I? Yes, in two different roles.

Setting up a Ltd company sounds daunting, but most contractors have an accounting firm who specialises in contractors, and they take care of all of that. Mine cost I think 30 euro a month. They handle creating the company, tax, everything. They even didn't want money upfront, they just deducted their fee every month, from when I got paid.

You send them your timesheet every week and the money arrives in your account on the day they tell you it will arrive.

The company you join probably have a firm they deal with. If not I can recommend one to you, just PM me.

It felt daunting the first time, but really, it's all very easy.

Just remember you don't get paid for holidays or anytime you aren't working, so have a strict savings plan. Also, remember you can get fired or let go with little to no reason/excuse at little to no notice, so have a rainy month fund once you have been earning for a few weeks/months.

Edit: I actually started in my current role as a contractor. It was for a 3 month contract. At the end of 3 months they renewed it. At the end of those 3 months they offered another 3 month or to go permanent. I opted to go permanent, because i quite liked it and while I took a bit of a loss in income, it provides me a bit more job security which is important now in my advancing years.

Sagitt

Guys, thanks for having a time to reply, cheers