•  Why operate through a Limited Company?
•  Why a Managed Limited Company rather than an Umbrella company?
•  Isn't an Umbrella Company more acceptable to the Revenue commissioners?
•  Isn't trading through a Single Limited Company very expensive?
•  What kind of expenses can I claim against tax?
  
  
  
  
  

Why operate through a Limited Company?

Increasingly, clients and agencies will only deal with Limited Companies as opposed to individuals. Furthermore, individuals who claim to be self-employed sole traders may find that the Revenue Commissioners will challenge their tax status and seek to treat them as employees. The use of a managed limited company will remove these difficulties as well as providing the advantage of limited liability in respect of any potential professional negligence issues.

Why a Managed Limited Company rather than an Umbrella company?

Umbrella Companies may perhaps be worthwhile for individuals who are contracting on a short-term basis. However, for the vast majority of contractors, the managed limited company provides you with a transparent structure where you know everything that is taking place and where you enjoy total ownership and ultimate control of your company and its assets. Neither you nor your company will have any responsibility or liability for the actions of other contractors or directors. Nor can any tax or legal complications arising in respect of other individuals' affairs overspill into your business. You should note that every director is presumed to be responsible for any offence committed by a company unless he can prove that he tried to prevent the offence or was unable to do so due to circumstances beyond his control.
The Managed Limited Company may also offer some additional tax-planning opportunities.

Isn't an Umbrella Company more acceptable to the Revenue commissioners?

This is clearly not so. In the case of a Managed Company and Umbrella structure the key point is that the client is contracting for services with a company and not an individual. The fact that the Umbrella Company brings together a number of individuals does not affect this analysis and in fact there may even be a danger that the Umbrella Company will be considered to be merely an Employment Agency. In any event, it is in fact is an integral part of the Managed Company set-up that Redsaco will supply the services of all of its contractor companies to a wide range of clients.

Isn't trading through a Single Limited Company very expensive?

This is true if you use the services of a conventional accountant who cannot offer the major cost-savings associated with a dedicated service such as that provided by Redsaco. There is in addition the initial company formation costs (in the region of 400 euro) which you would normally have to bear. Furthermore, the costs of employer/ public liability insurance are prohibitive (in the region of 800 euro p.a.) but with Redsaco we will set up your company and provide the appropriate insurance free of charge. Our concern is to free you from all of the hassle and expense of using a company but at a price that is directly comparable with that of Umbrella Company providers.

What kind of expenses can I claim against tax?

In many cases the position is clearcut but there are some grey areas which may vary according to your personal circumstances. The table below sets out the main types of tax-deductible expenses.