Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

IT Contractor: PAYE Umbrella vs Director Umbrella

Options
  • 05-02-2017 3:19pm
    #1
    higgins_j
    Registered Users Posts: 80 ✭✭


    Apologies if this question has been asked a million times before.

    I've just been offered an IT contract for 6 months. First time contractor as well. No idea if I will do it long term or not but I always wanted to try it and now is my chance.

    I'd like to use an umbrella company to make my life easier for the initial 6 months .. someone like Fenero / Icon.

    I'm looking for any advice on whether to go for a paye or director umbrella company ? I'm thinking of going initially for the paye option and then after 6 months I might go for the director option.

    Cheers,
    Jack.
    Tagged:


Comments

  • Options
    #2
    amtc
    Registered Users Posts: 2,490 ✭✭✭amtc


    Short term PAYE. I use Contracting PLUS. Mainly because they're set up on the client's payroll.


  • Options
    #3
    Ayuntamiento
    Registered Users Posts: 346 ✭✭Ayuntamiento


    My husband used Fenero for some short-term locuming. Said they were very professional to deal with. He was only doing it to earn a bit of extra cash so went for the PAYE umbrella option. I'd assume if this is your full-time job and you're making good money off it the director option would be more worthwhile.


  • Options
    #4
    uck51js9zml2yt
    Closed Accounts Posts: 18,268 ✭✭✭✭uck51js9zml2yt


    Better going as a PAYE worker. You will then qualify for social welfare, pension etc.


  • Options
    #5
    papertales
    Registered Users Posts: 16 ✭papertales


    Hey guys, sorry to resurrect this thread. Isn't it true that when you pay Class S PRSI you still qualify for State Pension? Maybe you don't pay towards Jobseeker's Benefit, but you end up covered for things like:

    Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
    Guardian's Payment (Contributory)
    State Pension (Contributory)
    Maternity and Paternity Benefit
    Adoptive Benefit
    Treatment Benefit (Dental, Optical and Aural) with effect from 27 March 2017.

    (taken from http://www.welfare.ie/en/Pages/PRSI-for-the-Self-Employed---SW-74.aspx)

    Also, I was reading the FAQs in the Welfare.ie site and they state that you may be entitled for Jobseeker's Allowance if you don't have more work as Director - Umbrella.

    Anybody has any other info? I'm in doubt to go that way now.

    Thanks!


Advertisement