Umbrella / PAYE Company
With this solution, the contractor is effectively an employee of an umbrella company, set up by Contracting PLUS to handle all tax, invoicing and payments. The Umbrella structure is used if you have a short term contract, a lower rate or if you are new to contracting.
The advantage of the Umbrella Company solution it that it allows you to operate via a limited company while keeping a PAYE status. The contractor pays Class A PRSI (equivalent to full-time employees) and retains a PAYE tax credit.
