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IT Contracting Advice

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Comments

  • #32
    dees99
    Registered Users, Registered Users 2 Posts: 180 ✭✭dees99


    I would like to point out that it no longer possible to claim a computer as an expense. I bought a Microsoft Surface a week before going to New York for Black Friday and tried to claim it back but was told you could'nt anymore.

    i did buy a new Nokia lumia and was able to claim the full cost of that b ack including my phonebills every month going forward! But i just got a new perm job on 51k so i dont even care about this stuff anymore! :)


  • #33
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    If it's for business purposes of course you can expense it. Who said you couldn't claim it back? Your umbrella? Are you talking about import charges or vat instead?


  • #34
    dees99
    Registered Users, Registered Users 2 Posts: 180 ✭✭dees99


    Im talking about claiming anything back for it. Like i mentioned already i bought it last October, i had asked CXC previous could i claim it back and was told i could. I went ahead and purchased it only to be told that it didnt count as a work expense so basically i had to pay for it in full. I know you are saying that you can claim it back, but trust me you cant!!


  • #35
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    This is why you shouldn't waste time and money with umbrella companies.

    If you are a proper contractor (self-employed) then you can claim back stuff in accordance with revenue guidelines.


  • #36
    dees99
    Registered Users, Registered Users 2 Posts: 180 ✭✭dees99


    Yes but the fees are higher to have your taxes and books balanced at the end of the year. You have to save money all year in order to be able to pay your tax and if you go through CXC for a limited company then its 250e a month for fee! There is ups and downs!


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  • #37
    dees99
    Registered Users, Registered Users 2 Posts: 180 ✭✭dees99


    Also i have been working in this contract since July 2001 and i dont even own a laptop. So i guess a computer/tablet is not a necessary business expense!


  • #38
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    No. Umbrella company works out way more expensive, employers prsi as well on top. The only overhead of a ltd company is accountancy fee of e1000 or less.

    The Umbrella company does not set these rules, the revenue does. Umbrella companies just disallow anything that they can't be bothered processing.


  • #39
    dannny1
    Registered Users, Registered Users 2 Posts: 35 ✭dannny1


    I just have a quick question, I am in the middle of my first contract as a director of an umbrella company. It's through a recruitment agency, so I send in my timesheets, my boss in the company approves them and the accountant gets transferred the money from the agency.

    I have been offered an extension when the contract ends in July and the company want to know how much more I want.

    My question, can I just cut the recruitment agency out after the initial contract is over? I'd rather not deal with them and it would be easier to just have a contract between me and the company I am working for and cut out the recruitment agency altogether.

    Also, id there a minimum daily rate that once gone over you would set up a ltd. company instead of an umbrella company?

    Thanks in advance.


  • #40
    jimmycrackcorm
    Registered Users, Registered Users 2 Posts: 14,419 ✭✭✭✭jimmycrackcorm


    When I was a contractor having my own limited company, I got caught out losing my PAYE allowance so that I only discovered later in years that I still didn't have it once I went back to a permanent job. Fortunately I was able to claim a good few years tax refund.


  • #41
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    dannny1 wrote: »
    I just have a quick question, I am in the middle of my first contract as a director of an umbrella company. It's through a recruitment agency, so I send in my timesheets, my boss in the company approves them and the accountant gets transferred the money from the agency.

    I have been offered an extension when the contract ends in July and the company want to know how much more I want.

    My question, can I just cut the recruitment agency out after the initial contract is over? I'd rather not deal with them and it would be easier to just have a contract between me and the company I am working for and cut out the recruitment agency altogether.

    Also, id there a minimum daily rate that once gone over you would set up a ltd. company instead of an umbrella company?

    Thanks in advance.


    You probably cannot cut the recruitment agency out, your contract probably has lots of nasty clauses about exclusivity etc. Also they may have a deal themselves with your customer.

    You can however cut the umbrella company out, it's cheaper to just run things yourself with the assistance of your own accountant. Should save at least e1000/year there.

    Regarding minimum daily rates, it's not worth being a contractor for low rates no matter what method you use. If you don't earn much then there isn't much tax to pay, so tax efficiency becomes irrelevant. More important is class A prsi contributions so you can get JSB (this means use an umbrella as a normal employee not a director).


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  • #42
    DublinWriter
    Registered Users, Registered Users 2 Posts: 9,581 ✭✭✭DublinWriter


    dannny1 wrote: »
    My question, can I just cut the recruitment agency out after the initial contract is over? I'd rather not deal with them and it would be easier to just have a contract between me and the company I am working for and cut out the recruitment agency altogether.

    This can really backfire if the company you ultimately work for are tardy when it comes to paying suppliers. Smaller Irish companies can be a nightmare in terms of getting paid.

    Perhaps the only good thing about agencies is that they will, and should, pay contractors' invoices quickly.

    Also bear in mind that most agencies will put in a clause about not working for their client directly after your contract is finished. Even without that, you may sour your relationship with the agency in terms of future work.


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