Working as an independent contractor

The Woodcock

I've recently been awarded a 12-month contract by a company to develop and manage several projects for them. The projects will involve travel, public meetings, working with community organizations etc. The company will pay me lump sums and I'll be responsible for sorting out my own tax affairs. Total value of the contract is around 50,000 euro.

I'm looking for advice and information about how I should approach this job.

Specifically, the contract states that I must have my own insurance cover which indemnifies the company. What insurance companies/brokers provide this type of cover and what is the like cost (ballpark figure)?

Should I operate as a sole trader or are there significant advantages from setting up a limited company?

What about PRSI? Can I make arrangements to pay contributions? Is this worthwhile?

Gloomtastic!

Insurance. Professional indemnity insurance is available from most brokers. The cost will depend on the amount you are covered for. Check out http://bizbroker.ie/ for a quote. They're the cheapest I've found in Ireland.

You should be safe enough as a sole trader. It means a lot less cost and paperwork.

PRSI contributions. Talk to an accountant about this.

Good luck to you, hope it all works out.

p.s Keep receipts for everything!

Maidhci

You will need Professional Indemnity (PI) Insurance - it is relatively easy to get quotes for this, most brokers will quote and it may also be possible to deal direct with Insurance Companies.

In relation to your contract, you will need to ensure that your contract is a contract for services as opposed to a contract of service to ensure that your tax status is correctly dealt with. I am sure you will have had advice prior to signing the contract etc. As far as the tax and PRSI is concerned, you will need to register as being self employed and account for your tax as a self-employed professional. What is your current tax status? Were you previously a PAYE worker (employed under a contract of service)? Basically, as a self-employed person, you will account for PAYE, PRSI on your earning in a particular tax year and pay the relevant amounts by the due dates etc. etc.

Remember to claim all your allowances etc. and keep detailed accounts of your business expenses.

Best of luck.

The Woodcock

Thanks for the advice. I was quoted around 400 for professional indemnity insurnace on bizbroker.ie, which seems reasonable enough, although I'll shop around offline as well before purchasing.