Ireland’s growing digital sector has opened up a variety of job opportunities, especially for those in IT contracting.
Thanks to technology giants like Google, Facebook and Microsoft opening up European offices in Ireland, the country has become a frontrunner in the digital market and has made it an increasingly attractive destination for contractors.
If you’re looking to set yourself up as an IT Contractor in Ireland you can either set up your own limited company or join an Umbrella Company.
Umbrella Companies in Ireland
Umbrella Companies are a service that is provided by specialist contracting service companies. The service allows contractors to avoid setting up new limited companies by being an employee of an Umbrella Company. This means all invoicing, VAT returns, tax and more are handled by someone other than the contractor. Ireland has a number of companies that can offer this service.
This may be a better option if you’re only looking to do one contractor assignment. The advantages of an Umbrella Company means you can start contracting right away and there are no entry or exit costs. Basically, the umbrella company does all the paperwork for you.
However, there is a regular commission charge of up to 5% of your earnings so if you plan to become a long-term IT contractor in Ireland you may prefer to set up your own limited company.
Setting up a Limited Company in Ireland
If you’re looking to become a long-term contractor in Ireland, you may be better off starting your own Limited Company. There is a lot more involved with this process and will require you to find your own accountant, solicitor and registering your company name. A Limited Company also needs at least two Directors and one must be a resident in the EEA.
Running a Limited Company means the directors cannot be held personally liable for any company debts and any profits made can contribute to work pensions without having to pay tax on the payments.
Taxation in Ireland
The Irish tax model is very similar to the UK but has certain differences. The Irish tax year is the calendar year and tax returns must be filed by October 31st of the following year.
Irish tax allowances include the following:
- Business Expenses – Although not usually taxable, they should satisfy the revenue rules on being necessary for the duties of the employment.
- Medical Expenses – a tax credit of 20% is granted for non-routine medical expenses
- Mortgage interest relief –This is available if the taxpayer’s property is based in Ireland
- Rented housing tax credit – Primary resident rent is subject to a tax credit of €1,600 to €3,200.
Work Permits and Social Security in Ireland
There are no restrictions in Ireland to its access to the labour market by citizens of other EU/EEA countries and Switzerland. This does exclude Bulgaria and Romania, who will require a work permit for the first twelve months. Other countries will require a full registration and work permit process to work and contract in Ireland.
Irish social security must be paid on your salary unless your EU-based employer can detach you from another EU country. This can amount to up to 10.75%
Find IT Contractor Jobs in Ireland
Begin your search for IT Contractor Jobs in Ireland by clicking the link.