New to IT Contracting - Accountant Advice

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TheSecondWind

Registered User
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1
Hi,

I've accepted a it contracting job and have decided that a Ltd. company seems like the best and cleanest option.
But I'm wondering about getting started.
Would anyone be able to recommend a good accountancy firm in Dublin?
Should I go with the managed service for around €140 a month for a firm to handle all the setup and payroll etc.?

Thanks.
 
€140 per month would be on higher side. It depends on what you are getting - there is accounts to be done, payroll, vat and corporation tax. None of this is particulary difficult if you know what you are doing but is a pain in the head if you are trying to learn it yourself. A contacting service provider should take care of this for you.

The main issue is what rate of PRSI you will be. If you are regarded as an employee the employer PRSI contribution (10.75%) will be taken out of the fees that you generate for the company. This is likely if you are in a company with a lot of other employees - this is called an umbrella company. Some service providers also provide hybrid companies - two or three people using the same company with the intention that there be no employer PRSI. On the other end is when you have a company of your own with its own bank account and you are the sole shareholder - more tax advantages here (including no employer PRSI) but lot more work as well.

Once you have more than 15% of the shareholding you lose with PAYE tax credit (worth €1,650) but from 2016 onwards you'll get the earned income tax credit (worth €500 to €600 or thereabouts).

Google contracting companies and you'll get a list of service providers and see that they charge and what they offer. If you are only doing it for a short term I wouldn't bother setting up your own company as it can be cumbersome to do accounts, tax returns, P35s
 
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Branz said:
And what impact that will have on the OP's entitlement to a full Contributory State pension when they retire.
The

is the issue.
Click to expand...

Rate of PRSI contribution (whether A or S) has no effect on entitlement to Contributory pension.
 
TheSecondWind said:
Hi,

I've accepted a it contracting job and have decided that a Ltd. company seems like the best and cleanest option.
But I'm wondering about getting started.
Would anyone be able to recommend a good accountancy firm in Dublin?
Should I go with the managed service for around €140 a month for a firm to handle all the setup and payroll etc.?

Thanks.
Click to expand...


I have my own LTD and I use ICON Accounting, find them very good and quick to turn around questions. Its €160pm for them to manage absolutely everything, €140 if you go with their own umbrella or €900 for the year end only. I plan on doing more myself when I learn more about whats required, it doesnt appear that much work if you know what has to be done.
 
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irishguy said:
I have my own LTD and I use ICON Accounting, find them very good and quick to turn around questions. Its €160pm for them to manage absolutely everything, €140 if you go with their own umbrella or €900 for the year end only. I plan on doing more myself when I learn more about whats required, it doesnt appear that much work if you know what has to be done.
Click to expand...
Use ICON also. Find them good, very responsive.
 
Jon Snow said:
Rate of PRSI contribution (whether A or S) has no effect on entitlement to Contributory pension.
Click to expand...

Even as a director of a close company and not paying any PRSI [neither er or ee] which is what my question is about, based on what has been written.
 
Branz said:
Even as a director of a close company and not paying any PRSI [neither er or ee] which is what my question is about, based on what has been written.
Click to expand...

How will they not be paying any PRSI?
 
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