Contracting versus Employeee

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peno

Registered User
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230
Hi,

I'm just considering going down this route.

Can anyone point me in the direction of a simple comparison of the 2 options that perhaps will take account of the number of days worked, taxes to be paid, vat, different benefits (life pension) etc.

Thanks
 
Hi, don't know of any simple comparison to point you toward. However here's some quick feedback which I hope will be of some help. I've been contracting for 3 and half years.

-number of days worked: (I've averaged 230)
- taxes to be paid: (PAYE, USC and PRSI 4%)
- vat: you charge VAT(1.23%) and then the ROS will take this from you, less any business expenses you can put down against the VAT owed.
- you should still be egilble for OAP but advice you have you own exective private pension

I've also setup income protection (€87 per month) which will pay me €24k per year for life in the event I'm not able to work.

Everyones circumstances are different but contracting suits me. I've wife, kids, mortgage. As I say there's no such thing as a permenant job (well not in the private sector). If you are planning to contract in IT then certainly Dublin is very good mark at the moment.

If you Google 'Salary Survey 2015' you get multiple surveys from recruiters which give you good comparision on daily rates vs permi roles.

Also when it comes to other benefit type thing there are some post online here which discuss pensions, wefare etc.
 
No entitlement presently to Unemployment Benefit. Depending which sector you're in, contractors are here-today-gone-tomorrow or treated with kid-gloves. I've worked places where being a contractor meant you weren't allowed the freebies that ordinary employees got e.g. use of a gym. Extensions to contracts were held up until literally the day before that contract ended. Sick-days are unpaid.

Pay for an accountant to do your tax-return. Lose your PAYE allowance.

What sector are you in?
 
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