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Umbrella Net
€4,216
Ltd Drawings
€1,520
PAYE Equivalent
€4,733
5yr Delta
-€163,729
Compare umbrella payroll vs personal limited company. Revenue Section 12/13 risk test, 5-year projection, and break-even analysis included.
Irish contractors often choose between umbrella company payroll and running their own limited company. Each structure has different tax treatments, costs, and compliance requirements. This calculator compares both scenarios.
Enter your daily rate, days worked, and estimated expenses to see the net income under both umbrella and limited company structures. The model accounts for employer PRSI, corporation tax, dividend withholding tax, and typical umbrella company fees.
Monthly Net Comparison
5yr Delta: -€163,729 · PAYE: €56,800/yr
Umbrella Eff.
54%
Ltd Eff.
83%
PAYE Eff.
48%
Days Worked Sensitivity
Umbrella Breakdown
Ltd Company Breakdown
Section 12/13 Risk Assessment
/10Risk of reclassification. Consider umbrella to avoid Revenue inquiry.
Expense Categories (Monthly)
Monthly Cash Flow Comparison
| Month | Umbrella | Ltd (Salary+Div) |
|---|---|---|
| M1 | €4,216 | €3,750 |
| M2 | €4,216 | €3,750 |
| M3 | €4,216 | €3,750 |
| M4 | €4,216 | €3,750 |
| M5 | €4,216 | €3,750 |
| M6 | €4,216 | €3,750 |
| M7 | €4,216 | -€7,399 |
| M8 | €4,216 | -€7,399 |
| M9 | €4,216 | -€7,399 |
| M10 | €4,216 | €3,750 |
| M11 | €4,216 | €3,750 |
| M12 | €4,216 | €3,750 |
Umbrella pays steady monthly. Ltd pays salary monthly + dividends quarterly — plan cash flow accordingly.
Contractor Guide
Umbrella vs Ltd — The Decision Framework
Below ~€80k/yr gross, umbrella is simpler and cost-effective. Above €100k, Ltd company structure saves significant tax via 12.5% corp tax and dividend extraction. The Section 12/13 risk score is critical — if your score exceeds 5, umbrella is safer regardless of income.
The Hidden Costs of Ltd
Accountancy fees (€1,200-€3,000/yr), employer PRSI (11.05% on salary above €506/week), and dissolution costs (€1,000-€3,000) reduce the Ltd advantage. Retained profits locked in the company subject to close company surcharge on non-trading income.
Auto-Enrolment 2026 Changes
From October 2026, all employees (including umbrella workers) are automatically enrolled in a pension scheme — employer contributes 3%, employee 3%, government 1%. Ltd company directors may opt out, preserving more take-home pay.
Frequently Asked Questions
Below ~€80k/yr gross, umbrella is simpler. Above, Ltd offers higher net income via 12.5% corp tax and dividend extraction. Use the calculator with your specific rate.
Revenue's test for false self-employment. If they deem you an employee despite being a Ltd contractor, you owe back taxes + employer PRSI + interest.
Revenue assesses Control, Integration, Substitution, Risk, Equipment, and Business Structure. Score 0-10: ≤3 safe Ltd, 4-7 grey zone, ≥8 risk of reclassification.
Typically €400-€500/day (€80k-€100k/yr). Below this, umbrella fees + holiday pay make Ltd hard to justify. Above, corp tax savings favour Ltd.
Yes — travel, subsistence, and home office expenses can be reimbursed tax-free. Ltd companies have broader categories including equipment and training.
From Oct 2026, umbrella employees are auto-enrolled (3-6% contribution). Ltd directors may opt out. This reduces umbrella net pay by ~€1,500/yr.
Umbrella companies typically set aside 8% of earnings as holiday pay — you get paid leave. Ltd directors have no statutory holiday pay entitlement.
Ltd companies with non-trading investment income pay 20% surcharge on undistributed income. Keep retained profits in active business use.
Yes — but the calculator assumes a full year. Mid-year switching affects tax credits, USC bands, and PRSI thresholds.
Incorporation: ~€200 (CRO), accountancy: €1,200-€3,000/yr, dissolution: €1,000-€3,000. Factor these into your decision.
Scenario-based suggestions to help you validate your result and explore the next decision point.