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Contracting to Permanent

  • 01-02-2021 2:53pm
    #1
    Wiggles88
    Registered Users, Registered Users 2 Posts: 242 ✭✭


    Hi All

    I am currently a contractor engineer in the pharma industry (limited company) and for a number of reasons I am considering going back to perm.

    The thing is I'm finding it difficult to find information on the process back to permanent. There's a huge amount of info out there for perm to contract but not much that I can see for the reverse.

    Is there anyone on boards with experience going through this? Is there any difficulty in closing the limited company/squaring away the final years accounts? Any potential pitfalls I should be looking out for. Any info would be a great help.


Comments

  • #2
    ari101
    Registered Users, Registered Users 2 Posts: 2,835 ✭✭✭ari101


    Wiggles88 wrote: »
    Is there any difficulty in closing the limited company/squaring away the final years accounts? Any potential pitfalls I should be looking out for. Any info would be a great help.

    Not difficult to liquidate a LTD if your stuff is in order (all creditors/liabilities settled, share capital is at a level which allows for a MVL, etc.), you will need to pay an additional fee to an accountant to act as liquidator; to calculate final financials/CT /de register for tax stuff/ get revenue clearance/file docs with CRO, etc.

    Good to engage with your accountant to get advice on what works for your set up sooner rather than later, timing might save the need to produce a year of statutory accounts and file same, maybe they have suggestions about tax efficient ways to remove any excess cash (pension, dividends, etc.?)

    You might also choose to deregister for VAT/PAYE as applicable, and just keep it dormant paying for basic accounts and annual filing each year incase you change your mind initially.

    Sounds like YOU are the business so it's not something that can be 'sold' if you intend to leave, which means entrepreneurial or retirement relief on CGT, depending on age, are probably not on the table?

    Might be worth asking this part of your query on the Accountancy Board for more suggestions.

    Depending on how you have been paid through the LTD, going back permanent may get you back into PRSI contributions system, which might be beneficial in future for pension and social welfare rights, along with all the other benefits of being an EE. You've done both before so you should be familiar with the perks of life on both sides.

    Best of luck with your decision.


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