Once you have made the decision to become a contractor and have accepted a role, you will need to either work under an Umbrella Company or set up your own Personal Limited Company. This will be your own preference however we have information below which may assist you in this choice. We can talk you through this to help you.
- An Umbrella Company
An Umbrella Company is a company that employs agency contractors who work on temporary contract assignments. The umbrella company will ensure your tax and PRSI obligations are met. They can cover insurances required such as such Public Liability, Professional Indemnity and Employers Liability. When it comes to the end of the working month, you send your timesheet to the umbrella company who issues invoices to Sabeo and, when payment of the invoice has been made, they will pay you (the contractor) through PAYE and you can offset some of the income through claiming business expenses such as travel, meals, and accommodation. The benefit of the umbrella company is that it takes out the hassle and additional work of being a Director of your own Limited Company.
- Personal Limited Company
If you plan on contracting for the long term then you may prefer to set up a Limited Company. As a Limited Company contractor the Limited Company is owned by you. It allows you maximum control of your finances and can be very tax efficient. Your Limited Company also offers you the protection against any personal liability when contracting. A Personal Limited Company is ideal for those who want to buy assets (such as a company car), retain funds in the company or employ a staff member.
There are many companies available to help you set up with an Umbrella Company or a Personal Limited Company with ease and can provide you with a full administration service to help you with your tax, insurance and accounting needs.
If you would like to discuss these options with one of our IT resourcing team please call us on 01-4064600.