How do I form the Company?
There are several ways in which a company can be formed. The most common routes are through a company registration agent or through an accountant or lawyer. You choose your own business name and specify the objects of the company. The company will then be created to your own requirements within about five to seven working days. The charge for our company start-up service includes all advice given as to the appointment of company officers and shareholders and completion of the initial registration form for VAT, PAYE/PRSI and Corporation Tax purposes.
What Documents will I receive?
Certificate of Incorporation: The birth certificate of the company setting out where and when it was incorporated, and its registered number.
Memorandum and Articles of Association: The constitution of the company setting out the objects for which the company is formed and any restrictions on the conduct of its day to day business.
What forms do I need to complete?
How do I open a bank account?
It is recommended that the contractor open two bank accounts in the name of the company: -
What Expenses can I claim?
As a freelance contractor your limited company is allowed to deduct from its income most expenses incurred in the conduct of its business or performance of its duties.
The question of what qualifies as a tax-deductible expense is generally straightforward. However there are some grey areas which often only become clearer when the Revenue Commissioners specifically decide that a particular expense is or is not a deductible expense.
Some categories of expense such as company cars or mobile phones are fully deductible but carry an associated benefit in kind tax charge on the contractor, while others such as accountant's fees can be deducted without question.
Often the particular circumstances of the contractor (e.g. residence, contract location, contract length, nature of work) can make it straightforward to determine how an individual will fare in his attempt to claim deductions.
How is the Company money distributed?
By Remunerating Yourself
The contractor should pay himself a regular salary at a rate normally agreed at our initial meeting. Any funds left in the company at the end of the financial year should be paid out by way of additional remuneration.
By Paying Third Party Expenses
Certain expenses can be met directly from the company's bank account (e.g. accountant's fees, pension contributions, training etc.).
By Reimbursing Expenses to Yourself
There will be a few expenses which, by necessity, must be paid directly by the contractor from his personal funds, but which relate to company expenditure. The contractor should regularly reimburse himself in respect of this expenditure (either monthly or quarterly) in the same manner in which he would claim expenses from an independent employer. An expenses reimbursement claim supported by receipts should be submitted to the company and a cheque written to the contractor for the total claim.
By Paying Tax Liabilities
The payroll taxes and VAT may both be paid to the Revenue by Direct Debit from the Company's bank account. At the start of the year we will work out the amounts that should be paid and we will fill in the direct debit forms on your behalf. Paying by direct debit means that the liabilities are always paid on-time and it reduces the paperwork as you only need to file one VAT and one PAYE return at the end of the year.
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Please note we cannot provide advice unless you are signed up as a client having completed the required money laundering documents, engagement letter has been issued to you and fee agreed.