New Year, New Venture: Is it time to get a Personal Limited Company?

New Year, New Venture: Is it time to get a Personal Limited Company?

Are you a self-employed professional in Ireland? Are you wondering if now is the perfect time to have your own company?

If you’ve been contracting for a while and have been contemplating the next steps for your career, the answer might be a resounding yes! Let’s explore the how and why to setting up your own company and the tax benefits involved for you.

 

1. Why do self-employed choose to work under a Limited Company structure?

Owning a Personal Limited Company opens up a realm of possibilities. You have full control over the naming and marketing of your business, how you expand your operations, hiring potential employees, and you gain more flexibility over your salary and have more pension planning options. If you work under a limited company, you’re in the driver’s seat, you can steer your financial future.

2. How do Limited Companies Work?

It’s simple really, your Personal Limited Company invoices the client you work for, and the money received is paid into your company bank account.  The company now owns this money.  The company then uses this money for things such as paying you a salary, making pension contributions on your behalf, purchasing company vehicles, and reimbursing you for business expenses.

3. Tax Perks Galore

If you’re thinking about retirement, your Limited Company can be a strategic ally. Owning a Personal Limited Company comes with significant tax benefits. One being that you can choose to build up funds within your company, and then you can plan the most tax efficient way to withdraw these funds at a later date.  With Retirement Relief, you can extract up to €750,000 tax free from your company or you might consider Entrepreneur Relief which allows for Capital Gains Tax relief on qualifying assets at a rate of just 10% (normally 33%!).

4. Administration is Made Easier

Contracting PLUS can set up your limited company for you, taking care of all the nitty-gritty initial paperwork, admin, accounting, and tax, leaving you free to focus on your clients and your work.

5. Thinking of Buying a Car?

Your Limited Company could help. The initial outlay to purchase the vehicle and all related expenses goes through your Limited Company.  All expenses that relate to the vehicle are paid by the company which in some cases makes owning a company car tax efficient (expenses such as tolls, repairs, insurance, motor tax etc all qualify).  We recommend commercial vehicles or fully electric cars for optimal tax efficiency. Talk to your Dedicated Account Manager to see what option works best for you.

6. Team Up and Expand

Ready to grow your business? Employing a spouse or partner can bring tax savings of up to €6,000 annually. You can also engage subcontractors through your Personal Limited Company as a tax-efficient way to scale your business. This subcontracting option protects you from the responsibilities associated with employing people directly such as Holiday Pay, Employers’ PRSI, Bank Holiday Pay, Pension, etc.

7. Diverse Business Ventures and Education

In today’s dynamic business landscape, there are opportunities abound. Whether it’s investing in cryptocurrency or exploring e-commerce, having your own company streamlines the administration of additional income sources. And if you’re thinking about further education, the cost might be eligible as a business expense, which you can administer using your Limited Company.

8. We’ve Got Your Back Every Step of the Way

Setting up your own company is easy with our free Limited Company setup service, and bespoke accounting software at your disposal, making end-of-year reporting simple and stress free for you. With Contracting PLUS you’ll get a  Dedicated Account Manager who will be your tax and accountancy guide, they will ensure you are tax compliant, they will help you to maximise your take home pay, and are available by phone or email to answer any questions you may have (and the good news is you are never on the clock, this is all part of our service)!

Let’s Talk! There’s a world of financial benefits waiting for you as a proud owner of your own company. Schedule a free consultation with our expert team at Contracting PLUS or ring us on (01) 611 0707 to kickstart your Limited Company journey.

 

Contracting PLUS Making Contracting Simple

← Back to Insights

Looks Like you're visiting from India

Would you like to be redirected to our Indian website?

View India Site