Sole Trader/Registered Company

kippy

Guys,
Its my first time contracting but I am starting a three month one tomorrow. The pay is very good. The recruitment crowd I got the job through advised me to contact another company who will help me become a registered company and handle all the paperwork, company setup/folding, tax returns and invoicing for me for a fee. 5% of each monthly invoice gross or 215 yoyo whichever is the lesser.
I had heard another option of setting myself up as a sole trader-registerering a company name-place of business etc and VAT number.
Can anyone shed some light on which is better......
Any help appreciated-if you need more information let me know and I will see how much I can provide.

homeOwner

Most agencies will not deal with you unless you become a limited company unfortunately. You can do it yourself, it will cost around 70euro (60 to file the form and about 10 to get it notorized).

Check out www.cro.ie for details on how to set up a company yourself and the requirements for registering for VAT. www.revenue.ie also has info..

You'll find a load of info here
http://www.askaboutmoney.com/archive/index.php/f-12.html


The fee of 5% per month seems high, well depending on what you are earning. Are they going to audit the books for you too or just do your monthly accounting? The usual fee for auditing is around 2K and about 2200 for accounting services included. Lke everything - shop around and dont take the word of the first person you speak to.

DublinWriter

I'd be very careful with those 'umbrella' companies. A few have gone belly-up in the UK owing people money, plus there still is no legal precident in this country and the Revenue Commissioners have successfully prosecuted a few agencies for 'employing' contractors and holding them liable for unpaid PAYE/PRSI.

5% is very spicy for that type of service - doing it all yourself will probably work out cheaper - it's a lot of hassle, but it's a good experience in knowing what running a small-business is all about.

Lastly, how are the agency contracting you if you're starting tomorrow and you've not set up a Limited Company? Have you signed anything with them yet?

trotter_inc

Im a contractor and Im with CXC Consultants Exchange in Cork - they handle everything for me.... give Fergal a shout on 021-4361707 - hes really helpful... say you got his number from Tommy Dunne...