Busting the Biggest Fears in Contracting

As Halloween approaches, it's the perfect time to tackle some of the spooky myths that might send shivers down the spine of anyone considering a contracting career. But fear not! We’re here to shed light on the most common contracting myths and reassure you that there's nothing to fear on this path. Let’s bust these contracting “haunts” so you can enter the world of contracting with confidence!

Myth 1: Contractors Pay Self-Employed Tax Rates

A common misconception is that becoming a contractor means you’re locked into self-employed tax rates. However, Icon Accounting offers solutions tailored to each contractor's needs. For instance, our PAYE Umbrella Company lets contractors retain their Class A PRSI contributions, aligning closely with traditional employment benefits and social contributions. For those who prefer a Director Umbrella Company or a Personal Limited Company, Class S PRSI applies, offering an equally advantageous path to tax contributions. With options available, there’s no reason to fear higher tax rates in contracting!

Myth 2: Setting up a Limited Company Solution Takes Time

In the fast-paced contracting world, delays in setup can feel like a nightmare. Many fear the time it might take to set up a Limited Company, potentially costing them opportunities. But with Icon Accounting, setting up is as smooth as a ghostly glide! We provide immediate set-up services and seamless umbrella company solutions, so you’re ready to start as soon as your contract offer is in place. Whether you’re opting for our Limited Company solution or another structure, we make it easy to get started without the wait, making it an ideal choice for first-time contractors.

Myth 3: Contractors Don’t Have Access to Social Welfare Benefits

One of the most spine-chilling myths about contracting is that contractors lose their social welfare benefits. Fortunately, this is a misconception! By opting for a PAYE Umbrella Company, contractors can retain their Class A PRSI contributions, ensuring that they maintain access to benefits, including the state pension and parental benefits. Even those paying Class S PRSI can access Jobseeker’s Benefits and the state pension. The changes in recent years mean contractors can keep social welfare contributions intact—no tricks here, just treats!

Myth 4: Contractors Can’t Get a Mortgage

The idea that contractors are barred from getting mortgages might seem like a nightmare, but it’s far from true. Banks and mortgage lenders in Ireland are increasingly welcoming contractors and self-employed professionals, and many even have tailored products for them. With some planning, you can save for a deposit thanks to the potential for higher income in contracting. So, don’t let outdated myths scare you away from home ownership as a contractor. The reality? Contractors can access mortgages with relative ease, especially with the right financial planning in place.

Myth 5: Contracting Means No Job Security

The idea of job security often comes up when considering contracting, but today, job security looks different across all forms of employment. The reality is that permanent jobs don’t carry the guarantees they once did, as shown during the COVID-19 pandemic. Contracting, on the other hand, has flourished in response to a growing demand for specialized skills, meaning that qualified contractors are often in high demand. With planning, networking, and understanding your market, contracting can provide financial stability and a steady flow of exciting opportunities. No need to be haunted by the fear of insecurity!

Myth 6: Contractors Miss Out on Employee Benefits

Traditional benefits like health insurance, paid time off, and pension contributions can seem out of reach for contractors—but that’s just another myth! Contractors can set up tailored benefit packages through Rockwell Financial, Icon Accounting’s wealth management partner, to build their own comprehensive benefit package in a cost-efficient and tax-effective way. As a contractor, you have the advantage of customizing your benefits to suit your priorities and lifestyle. It’s not only possible; it’s simple and can often provide even greater value than traditional packages.

Myth 7: Contractors Work Alone and Miss Out on Community

The thought of working solo can seem chilling, but contracting is far from a lonely path. Remote work and hybrid models have become the norm for many, creating environments that foster connectivity and inclusivity. At Icon Accounting, we make it a priority to cultivate a sense of community for our contractors through networking events, learning opportunities, and even social gatherings. Far from working in isolation, you’ll have access to a network of like-minded professionals and ongoing support from our team.

Don’t Let These Myths Scare You!

Contracting opens doors to flexibility, higher earnings, and an exciting career path in Ireland’s ever-evolving professional landscape. So, this Halloween, don’t let these myths send you running. Instead, step confidently into contracting, casting aside old fears for new opportunities. Embrace the flexibility, freedom, and possibilities that come with contracting, and remember—there’s no reason to be spooked.