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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.
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.