As a contractor, you offer your services to a business rather than being directly employed by them. Instead of receiving a fixed salary like an employee, you are paid on a daily or hourly basis for the work you complete. Your pay as a contractor often includes compensation for holidays and sick days, which are typically covered separately in salaried employment.

While contracting can initially seem daunting, especially as a first timer, it often comes with the potential to earn significantly more than traditional employees, along with the added benefit of gaining diverse and valuable work experience.

Contract: As a contractor, you enter into a Contract for Services between your Limited Company and your client/agency, providing services as a consultant rather than being an employee.

Rate of Pay: Contractors typically receive a higher daily rate of pay compared to a fixed salary in permanent employment, resulting in a generally higher net take-home pay.

Holiday & Sick Pay: Your daily rate as a contractor includes holiday and sick pay entitlements, so it’s important to budget for these in your financial planning.

Business Costs: Unlike employees, contractors must cover the costs of training, business equipment, and other expenses, which are tax-deductible as allowable expenses.

An Umbrella Company serves as an intermediary between a contractor and your client. It handles all accounting and payroll responsibilities on behalf of the contractor, ensuring that tax compliance is maintained while the contractor focuses on their contract work.

Yes, management fees can be tax deductible, with deductions of up to 52%, depending on your personal tax credits.

Yes, you can switch between a PAYE Umbrella Company and a Director Umbrella Company at any time during your contract role. Simply reach out to our experienced team, and we will handle the transition for you.

No, there are no additional charges for changing your set-up under the Umbrella Company.

No, there is no minimum period required.

No, Med Accounts Solutions takes care of all taxes and payments for contractors under both the PAYE Umbrella Company and the Director Umbrella Company. As part of our fully managed service, we assist contractors with Revenue registration and manage all invoicing, payroll, and taxes for the duration of the contract. Each payment will include a payslip with a detailed breakdown of payments and taxes.

No, payments can be made directly to your personal bank account. A separate bank account is only required when setting up a Private Limited Company.

You are required to act in the best interests of the company at all times and adhere to any contracts you have entered into on behalf of the company, as per the signed agreement. It is your responsibility to ensure that your expense claims are legitimate and solely for the purposes of the contract.

Contractors can be set up immediately under the Umbrella Company.

Setting up a Private Limited Company typically takes 3-5 business days. Med Accounts Solutions will also manage VAT registration for the company (if applicable). A separate bank account must be established for the Private Limited Company.

You can upload your timesheet on the Med Accounts Solutions Portal. Personal login details will be provided when you sign up for our services. Once a timesheet is uploaded, an invoice is sent to your client requesting payment.

As an LTD contractor, the client or agency will pay you directly, as the Contract for Services is between you and the agency or client. Med Accounts Solutions will send an invoice to your client, and once payment is received, we will process your payroll at month end and send you a payslip.

As a member of an umbrella company, Med Accounts Solutions will send an invoice to your client, and once payment is received, we will process your payment, your payroll and send you a payslip.

Med Accounts Solutions guarantees same-day payment processing. Once we receive funds from your recruitment agency, we will immediately process your payroll and transfer the funds to your personal bank account.

Yes, you can claim tax relief on expenses that are wholly and necessarily incurred for the purposes of your contract. For more information on allowable expenses, refer to our Business Expense Guide, or consult your Account Manager for advice on specific queries.

Business expense receipts can be uploaded to our Portal. If you prefer you can send a legible picture to us on Whatsapp or via email and we will upload these receipts to your account.

At Med Accounts Solutions, we specialise in accounting services for contractors. We ensure that all legal and tax requirements are thoroughly managed, so you can focus on your work without worry. Our team provides ongoing support, offering practical and straightforward advice on payments, business expenses, and what to expect when starting out as a contractor.

Our team will guide you through the various options available for setting up as a contractor. We take into account the duration of your contract, your pay rate, and your personal circumstances to recommend the best contracting solution that maximises your take-home pay. The options include:

• PAYE Umbrella Company
• Director Umbrella Company
• Private Limited Company

If your circumstances change during your contract, we’re here to assist and make any necessary adjustments to ensure your continued success.

If you choose to work under a Director or PAYE Umbrella Company, VAT registration is not required. However, if you decide to set up a Private Limited Company, VAT registration may become a requirement.

Attractive Pay Rates: Contractors often command higher rates of pay compared to employees.

Diverse Experience: You gain experience across a variety of projects, locations, sectors, and organizations, enhancing your skills and marketability.

Skill Development: Contracting facilitates continuous development, helping you stay current in your field.

Tax Relief on Expenses: Contractors can claim tax relief on business expenses.

Flexibility: You have greater control over when, where, and with whom you work.

• Full Tax Compliance: We ensure you remain fully compliant with tax regulations throughout your contract.
• Timely Payments: We guarantee that all payments are processed on time, every time.
• Insurance Protection: You are protected by Employers & Public Liability insurance.
• Comprehensive Management: We handle all administrative, tax, and invoicing duties on your behalf.
• Ongoing Support: Our team of professionals provides continuous support and assistance throughout your contracting journey.

Once your client makes your final payment, Med Accounts Solutions will notify Revenue that you have ceased contracting. This will allow Revenue to update your MyAccount. If you set up under the Director Umbrella Company, we will also handle your resignation as a Director of the Umbrella Company.