A limited company is a separate legal entity which exists in its own right. The company officials and shareholders have limited their liability to the extent of their investment, i.e. it is restricted to the amount of capital they invested in the business. This means that an individual’s personal assets are not at risk if the company ends up in receivership.

An umbrella company is a company that acts as an employer to contractors who work under a fixed term contract assignment, usually through a recruitment agency. The contractor is not a director, nor does he/she own any shares in the company. The contractor works for end clients but rather than working directly for them, he/she provides services through the umbrella company. The umbrella company issues invoices to the recruitment agency and, when payment of the invoice is made, will typically pay the contractor through PAYE. You may be considering the option of a contractor umbrella company.

In general, contractors prefer limited companies over umbrella companies as umbrella companies can involve increased risk that comes with being a co-employee in a company with people you don’t know and lower take home pay. Limited companies do not carry these risks and give you more control over your company. You should talk to your account manager about which option is best for you.

If you choose to operate through a limited company, then you will be the core of the company and have more control over its affairs. If you are the director of a limited company, you may also be required to file a personal income tax return every year. Contract Options can help you with this.

Your limited company will usually be set up and ready to operate within 24 hours of you completing the set up process with us. Your accounts manager can let you know at any time how your company is progressing through this process.

If you choose to go back to permanent employment you either leave your account dormant and return to it at a later stage if you start contracting again or else you can let your account manager know that you would like to close down your account.

At Contract Options, we know what’s important to all our clients. We’ve are a client-centred service that is fully focussed on providing expert contractor advice and solutions.

Contract Options offers:

• A friendly, approachable service –we will speak with you in easy to follow language and strive not to confuse you with complex and lengthy accountancy terminology

• Fully qualified accountants – Our capable, competent and dedicated contractor team will offer you quality solutions and advice, which are fully compliant with tax legislation

• Value for money – our low fixed fees ensure that you’re getting sound advice and solutions at a reasonable price.

• Security and confidentiality – your information is fully protected and secured by our advanced encryption technology. It can be ensured that when you disclose information it will be completely respected and held with upmost confidentiality.

This will depend on the agreement you signed with the company you are ultimately providing services to.  In general, monthly billing will be favoured, though weekly billing is sometimes provided. Following receipt of your timesheet, we will invoice your recruitment agency on the first work day of each month. Payment from the company bank account to your personal bank account is then made on the same day the payment from your recruitment agency is received.

Every time we pay you we will add the payslip to your account, which will detail your income for that period.

Absolutely nothing! You don’t have to do anything because we will take care of bringing your contract to a close. All you have to do is notify us to add another contract whenever you get it.

A director is the person within a company who is responsible for determining and carrying out company policy.

You can have as many active contracts on your account as you want. You just need to provide us with the correct information for each one.

When you are the director of your own limited company, you can claim expenses that are deemed to be incurred completely for the purpose of your business such as travel expenses, accountancy fees etc. For Umbrella Companies, the expenses you incur must also be ‘necessarily’ for the purposes of your business, i.e. totally unavoidable.

You can upload your expenses for the previous month any time you like, but for inclusion in the following month’s calculation, they must all be submitted by the 25th day of the month. After this date, all expenses are submitted and you will be unable to change them. If you forgot to add in an expense, you can add it to next month’s expenses.

Yes, you can edit, delete and add new expenses up to the 25th day of every month.

A Professional Contractor is a person who undertakes a contract role within their area of professional expertise under the terms of a contract. An independent Professional Contractor does not work for an employer but works through a Limited Company structure.

Yes. As client-centred accountants, we can undertake the accounts for your company whether you have been looking after them yourself or wish to change over from your existing accountant.

Once we have verified your requirements, we will establish you in a Limited Company structure which reflects your needs. We will liaise with the agency or company who have engaged you in relation to your contract. We issue your invoices once we receive your timesheets, we offer ongoing advice and assistance in relation to revenue allowable expenses, we process your payment, offsetting approved revenue allowable expenses, ensuring that taxation is paid over to the Revenue in a timely fashion. We look after the VAT and company returns and if you are making S Class contributions we liaise with you in relation to your annual personal tax return.

We offer a full financial review so that you have the peace of mind of knowing you are availing of all possible entitlements and taking the appropriate action in financial relation to retirement and wealth planning.

Yes, through advice and consultation we can assist you in relation to all financial issues whether current or historic.

It is very easy to move over to Contract Options. We will simply need to clarify your existing set-up and make the transition. We can liaise with your existing agent in relation to the new details.

Professional Contractors, Independent Contractors and Freelancers may be engaged in a number of ways;

1) by a company directly

2) by a specialist intermediary company

3) through a recruitment agency

Contract Options can assist you in all of these instances.

The PRSI rate of 4% applies to S Class self-employed / company directors.

Yes, it is possible to claim travel expenses while you are contracting as long as they adhere with the Revenue guidelines.

It is possible for a company to be audited by the Revenue at any time. Contract Options will undertake the responsibility of the audit for the company.

It is possible for a taxpayer to be audited by the Revenue at any time. Contract Options can assist you in relation to a personal audit, where knowledge of all aspects of your personal finances is necessary.

You will not need to file any company returns during the year – Contract Options will look after these for you.

If you are S Class in your PRSI contributions, you have an obligation to complete a personal tax return which Contract Options will complete with you in the first half of the following year.

Contract Options do not charge you when we are not acting on your behalf ie. when you are not working, there is no fee.

No, there is no fee when you are resigning.

Contract Options will look after all VAT returns for you.

Each individual case is different, but the main point to consider when you contact Social Welfare in relation to payments is that they look at your contributions from 2 years previous. If you were paying A Class contributions through your employment for a minimum of 2 consecutive years, with a minimum of 39 weeks in your final year, you are likely to qualify for Jobseekers Benefit. If you were paying S Class contributions within this timeframe, you are entitled to apply for Jobseekers Allowance which is subject to a means test.