Hi all,
I'm currently in the interview process for a new contractor/hourly-rate role through a recruitment agency. The recruitment agent mentioned that if I get the job, I'll have the option of being paid by the recruitment agency or I can be an independent contractor. I'm trying to figure out which option is best in terms of minimizing my tax due.
As far as I can tell, I have 3 options (please correct me if I'm wrong):
1. Get paid through recruitment agency who will sort out my tax (PAYE, USC, PRSI) and charge me for fee for doing so, I assume.
2. Get paid through Umbrella Company through Contracting Plus, Icon Accounting, etc.
3. Get paid through my own company that I will have to setup with the help of an accountant.
My question is, what are the tax differences between these 3 options? I also read that if I become a contractor, I won't be able to seek Jobseeker's Allowance if I become unemployed because I won't be making the same PRSI contributions, is this correct?
I'm currently in the interview process for a new contractor/hourly-rate role through a recruitment agency. The recruitment agent mentioned that if I get the job, I'll have the option of being paid by the recruitment agency or I can be an independent contractor. I'm trying to figure out which option is best in terms of minimizing my tax due.
As far as I can tell, I have 3 options (please correct me if I'm wrong):
1. Get paid through recruitment agency who will sort out my tax (PAYE, USC, PRSI) and charge me for fee for doing so, I assume.
2. Get paid through Umbrella Company through Contracting Plus, Icon Accounting, etc.
3. Get paid through my own company that I will have to setup with the help of an accountant.
My question is, what are the tax differences between these 3 options? I also read that if I become a contractor, I won't be able to seek Jobseeker's Allowance if I become unemployed because I won't be making the same PRSI contributions, is this correct?