Moving to contract work from full time employment

[joeykidd]

Hello,

I'm moving to a 6 month contract work (1200 euro per week) from a full time job.

I was just wondering if anyone has any advice about the most efficient way of managing this situation from a tax point of view.

Is it worthwhile going through the palaver of setting up a limited company? Or should I just be self employed and pay my tax at the end of the year.

Things to take into account include the fact that I might well end up going back into regular employment at the end of this contract.

Any thoughts?

 

[ClubMan]

Is it worthwhile going through the palaver of setting up a limited company?

Tommy McGibney's [broken link removed] might help you answer this question.

 

[joeykidd]

Hmm, on first glance, I'm thinking that I won't bother, its looks like a bit too much hassle for no immediate benefit.

If I'm paying corporate tax of 12 1/2% would I still have to pay income tax on any dividends from the company?