IT Contracting - First Steps

Hi,

About to start IT contracting next month and am trying to decide which is the best course to take and the steps required. I start in 4 weeks and will need to have everything in place by then. Interested in opinions of which option to pursue and why.

Option 1 - Set up my own limited co.

Option 2 - Use a managed limited co. service from the likes of Contracting Plus or Prima

Option 3 - Umbrella setup

Options 2 and 3 appear relatively straight forward and quick to setup but incur a cost of circa 215e p/month gross from these companies.

What are the steps required in Option 1 and what are the major benefits that would make it the best option.

Candyman

I am in the same position - restarting an IT contract with a financial instution in 2 weeks after being on maternity leave for the past 4 months.

The criteria for contracting has been tightened considerably and I am no longer able to continue as a sole trader with the company and so after research I have decided to go with option2 with Icon Accounting in Swords - €140 per month & Professional Indemnity is covered with this cost.

Hope that helps.

@Tower002 With Icon are you doing the Umbrella Co. Director Member option?

In a month where you are taking a 2 week holiday, so you will be invoicing say 10 days in the month, with the Umbrella Director option how do you ensure you get paid roughly the same as other months?

Hi Candyman,

Yes - that is the route that I am taking. I don't earn enough (starting off on a 2 day week) to go down the Ltd Company route so this seems to be the best option.

There is an option with this setup that Icon will "hold" back up to 10% of each month's salary, post tax, deductions etc, that will then be paid to you as holiday pay or Christmas bonus or whenever you want to take it. It's a handy option.

Hi, I was a IT contractor for years and used option 1 (own LTD co.) - easy to set up and worked out a lot better financially.