FAQ

Why should I choose Prima over other umbrella company providers?

Years of experience allow us to tailor the right solution for each of our clients. There are other companies that will offer you a ‘one size fits all’ solution – but this approach does not take into account the individual needs of the client. At Prima our aim is to provide the best and most cost-effective solution for each client, and to do this we take great care in assessing a range of factors which have to be considered before advising them on the best solution. Our clients range from a first-time contractor needing a low-cost payroll solution to experienced international contractors earning six figure sums who need advice on international tax issues – so we have the experience and knowledge to give the best advice.

What is a PPS Number?

Your PPS No. is your Personal Public Service Number.  It is a unique identifier for use in any transactions you may have with public bodies in Ireland such as the Revenue or Social Welfare.

I have just arrived in Ireland and don’t have a PPS number. How do I get one?

You need to contact your local Social Welfare Office to start the registration process. You will be asked to produce documentary evidence of identity and residence in this country. Registration must be done in person but Prima can assist you with the process and the documentation required.

How do I get a certificate of tax credits?

If you have previously worked in PAYE employment in Ireland your tax credit certificate will be issued to your company following the submission of your P45 received from your previous employer. If you are entering your first employment in Ireland it will be necessary to submit a completed Form12A once your PPS number has been issued. Prima can guide you through the process and issue a Form12A to you for completion and submission.

How do I know if I am resident in Ireland for a tax year?

Your residence status for Irish tax purposes is determined by the number of days you are present in Ireland during the tax year, which runs from January to December. You will therefore be resident in Ireland for a particular tax year in either of the following circumstances:

• If you spend 183 days or more in Ireland for any purpose in that tax year, or
• If you spend 280 days or more in Ireland for any purpose over a period of two consecutive tax years you will be regarded as resident for the second year.
  Contact us now if you require clarification of your tax status.

I have my own company in the UK, can I use it when contracting in Ireland?

The Finance Act 2006 introduced new legislation regarding individuals being paid by overseas companies for work carried out in Ireland. Whilst it is possible for employees of UK companies to work in Ireland and remain outside of the Irish tax system (for a short term only) it is necessary to obtain clearance from the Revenue before commencing work. Failure to obtain prior clearance can lead to severe penalties for you, your company, or your employer/agency.

Can I claim expenses?

If you incur valid business expenses in the course of performing the duties of your employment you can claim a tax free reimbursement from the company. In order to claim a reimbursement an expense claim must be completed and receipts must be obtained for all expenses other than mileage and subsistence allowances which are paid on the basis of current civil service rates. It is imperative that accurate records and original receipts are kept as they will need to be produced in the event of a Revenue Audit.

What is a valid business expense?

This varies depending on an individual’s circumstances, but for most contractors following are the expenses that are typically allowable – training, professional fees, business related telephone/broadband, business related travel, technical books. Certain items are specifically disallowed by the Revenue, including entertainment, the cost of travelling to/from your normal place of work each day. Of course, we can give you advice on your specific queries regarding all business expenses.

I’ve been told I can take my friends out to lunch and claim it is a ‘business’ expense?

Where payments to directors and employees are made incorrectly as tax-free expenses, the Revenue Commissioners take a very serious view of this, and will consider whether there is any element of fraud involved. If they feel an offence has been committed, they will take action against the company and/or directors. It is vital therefore that only valid business expenses are claimed, and companies which advise you that it’s OK to embellish your expense claims should be avoided.