Income tax implications of becoming an IT contractor €450p/d assuming 200 days p/y?

irishguy

Registered User
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I am trying to get an idea of what kind of take home pay I would get.
Anyone point me to a website/calculator?

It would be a single client on €450p/d assuming 200 days p/y

What would my allowable expenses be?
Mobile
Broadband
Accounting fees
Laptop/other electronics

Would I be able to claim for a home office (own my home, with a mortgage),company car?

If a home office is allowed could I offset a percentage of mortgage,esb,gas,house management fee, property tax,cleaner,maintenance.

Also on allowable expenses if something cost €100 could I claim back vat and then pay for for it before tax?i.e costing me €37

Would anyone have an idea what I would come out with and are there other things I am missing?
 
Hi IG,

I ve modified your title somewhat to more accurately reflect your question. Let me know if this is OK.

from 'It contracting take home' to " Income tax implications of becoming a contractor €450p/d assuming 200 days p/y? "

aj
moderator
 
if you only have one client an this is effectively full time you may well be deemed employed.
 
I am trying to get an idea of what kind of take home pay I would get.
Anyone point me to a website/calculator?

It would be a single client on €450p/d assuming 200 days p/y

What would my allowable expenses be?
Mobile
Broadband
Accounting fees
Laptop/other electronics

Would I be able to claim for a home office (own my home, with a mortgage),company car?

If a home office is allowed could I offset a percentage of mortgage,esb,gas,house management fee, property tax,cleaner,maintenance.

Also on allowable expenses if something cost €100 could I claim back vat and then pay for for it before tax?i.e costing me €37

Would anyone have an idea what I would come out with and are there other things I am missing?

You should probably speak to a good accountant / tax advisor - Revenue are very active in the area of contractors so you won't want to fall foul of them from the outset!

A decent summary with links to the relevant Revenue / Institute of Taxation pronouncements is here [broken link removed]
 
If I am going ahead with it I'll be getting an accountant. I am just trying to get an idea if it's even worth it
 
Hi irishguy,

Actually I would recommend you contact someone like cxc who manage contractors and they will give you details of what you can deduct and what your net monthly income is. I remember they giving me an excel spreadsheet outlining what I could deduct. Also another company is iconaccounting. I would recommend contact either of these as they are in the business of managing contractors so will be able to indicate the best solution.
Best of luck (
 
Thanks guys I assumed they would expect me to employ them before telling me. I was trying to get a ball park what % of my rate I would get to keep on average. I'll fire those guys a mail and see what they say
 
I have also used CXC and would recommend enquiring with them.

They will take a percentage of your invoices. It is more cost effective to get a good accountant. You will have extra paperwork to do, but if thats not a problem for you, I would recommend the accountant route.
 
Irishguy ring the umbrella companies such as CXC and they will tell you their rates and what % of daily rate you can retain and will give you details on their fees .
There are other companies doing this as well so shop around if you are concerned..
 
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