Irish IT Contracting Rates Soar 20% as UK Freelancers Eye Irish Market

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Irish Contractors - Irish IT Contracting Rates
Irish Contractors - Irish IT Contracting Rates

Irish IT Contracting Rates

Irish UK contracting rates increased by a mighty 20% last year. This has attracted contractors and freelancers from the UK. The number of IT jobs is soaring as the economy is booming. Already, this year, a further 4,000 IT jobs have been created by mainly American firms in the Irish economy.

  • Why are Irish IT contracting rates soaring?
  • Why are UK IT Contractors moving to Ireland?
  • What are the tax rates for contractors in Ireland?
  • What are IT Contractor Rates in Ireland?
  • How can UK contractors get IT contract work in Ireland?

Why are Irish IT Contracting Rates Soaring?

Irish IT contractor rates are soaring for a number of reasons:-

  • The Irish economy is booming again
  • Some years ago the Irish Development Agency decided to concentrate on bringing tech firms to Ireland
  • This has been a tremendous success with all the big US tech giants like Google, Amazon, Microsoft and Apple now operating in Ireland
  • Low corporation tax rate of 12.5%
  • An even lower tax rate for hose big tech giants
  • The fall out from Brexit with many multinational and British companies looking to move to Ireland to use it as a base for selling tariff free into the EU

Why are UK IT Contractors Moving to Ireland?

Many UK IT contractors are moving to Ireland because of the boom in the tech sector there. Indeed Ireland cannot get enough people to fill the IT jobs and contracts that they have.

Only 70% of the tech jobs in Ireland are filled by Irish people in the tech sector. 10% are filled by UK nationals with another 20% filled by other nationals.

Witth Brexit coming and multi national companies who currently base themselves in the UK to sell tariff free into the EU, looking for another English speaking base in the EU, Ireland is poised to benefit greatly. The greatest benefits should be in the tech sector. So, Irish IT contracting rates should continue to soar.

What are the Tax Rates for Contractors in Ireland?

Corporation tax, or Company Tax as it is called in Ireland, is a lowly 12.5%.

It is not just Dublin where UK IT contractors are moving but to other areas of the country. Indeed some lucky UK IT contractors are able to telecommute to their jobs in Dublin from rural areas of Ireland or from back home in the UK. Although they would lose the benefits of the 12.5% tax rate if they are resident in the UK.

The top rate of tax in Ireland is 40% which kicks in at €44,300. Below that the rate of tax is 20%.

With Corporation Tax so low in Ireland, Irish contractors tend not to use dividends, like they do in the UK, to keep their tax bill low.

What Are IT Contracting Rates in Ireland?

Irish IT contracting rates are soaring – but to what? Here are Harvey Nash’s current rates in Ireland for various IT Development contract jobs.

HARVEY NASH IRELAND – QUARTER 1 MARKET TRENDS REPORT

Software Development & Engineering Development Manager 600-800

Development Lead 500-550

Java / C# Developer 350-500

Developer 350-500

Open Source Developer 400-500

Web Developer 350-450

Front-End Developer 300-450

Middleware Developer 400-650

Scala Developer 450-650

Python Developer 400-650

Sharepoint Developer 450-600

Blockchain Developer 450-650

How Can UK Contractors Get IT Contract Work in Ireland?

Irish IT contractor rates continuing to climb and UK IT contractors would do well to look at the Irish market. So, who are the main IT Contractor recruitment firms there?

Well, the biggest player in the Irish IT contracting market is Harvey Nash who produced this report. And Harvey Nash are a UK firm. Hays are also big in Ireland too.

The biggest Irish firm is CPL Resources. It might be an idea to send off a few CVs. You never know when you will be called. It is also an alternative when you are out of work in the UK. And with both Brexit and the IR35 changes in the private sector looming, it may be the wisest thing you have done.

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