{
  "schemaVersion": 1,
  "kind": "Fixed calculator reference example",
  "id": "contractor-paye-comparison",
  "name": "PAYE vs contractor vs umbrella",
  "canonicalUrl": "https://count.ie/finance/paye-vs-contractor-umbrella-comparison/",
  "referenceUrl": "https://count.ie/calculator-reference/contractor-paye-comparison.json",
  "audienceLocale": "en-IE",
  "siteFocus": "Ireland",
  "question": "Is a contractor, umbrella or PAYE job worth more after Irish tax?",
  "answerSummary": "PAYE vs contractor vs umbrella example — PAYE job: annual gross salary offered (€): 70,000; Employer PRSI rate (%): 11.25; Other fixed employer costs per year (€): 0; Umbrella: annual assignment budget paid to the umbrella (€): 95,000. Paye Net Annual: €50,200.93; Umbrella Net Annual: €57,040.14; Sole Trader Net Annual: €59,278.01.",
  "method": "PAYE and umbrella use the existing 2026 PAYE model; umbrella gross salary is (budget − fee − other employer costs) ÷ (1 + employer PRSI). Sole trader uses the existing 2026 sole-trader model on turnover less allowable costs.",
  "methodology": "PAYE and umbrella use the existing 2026 PAYE model; umbrella gross salary is (budget − fee − other employer costs) ÷ (1 + employer PRSI). Sole trader uses the existing 2026 sole-trader model on turnover less allowable costs.",
  "calculationSteps": {
    "explanation": "PAYE and umbrella use the existing 2026 PAYE model; umbrella gross salary is (budget − fee − other employer costs) ÷ (1 + employer PRSI). Sole trader uses the existing 2026 sole-trader model on turnover less allowable costs.",
    "coverage": "published-catalogue-method",
    "steps": [
      {
        "step": "Published calculation method",
        "formula": "PAYE and umbrella use the existing 2026 PAYE model; umbrella gross salary is (budget − fee − other employer costs) ÷ (1 + employer PRSI). Sole trader uses the existing 2026 sole-trader model on turnover less allowable costs.",
        "scope": "Use the stated input units, supported modes and limitations below."
      }
    ],
    "limitations": "Employer PRSI is your own assumption (default 11.25%, unverified). Cash comparison only for a single person aged 18–64 with standard credits. Salary and invoiced turnover are separate contracts. Employment rights, pension, sick pay, redundancy and employment-status checks are not equivalent. VAT, accountancy fees, capital allowances, losses and umbrella expense schemes are excluded.",
    "authority": "Explanation of the implemented calculator, not independent professional review, enactment verification or a promise of AI citation."
  },
  "relatedCalculators": [
    {
      "id": "paye-side-income",
      "name": "PAYE side-income filing planner",
      "url": "https://count.ie/finance/paye-side-income-planner/",
      "purpose": "Compare employment and self-employed routes for the same work."
    },
    {
      "id": "salary",
      "name": "Salary & PAYE",
      "url": "https://count.ie/finance/salary-tax-calculator/",
      "purpose": "Compare employment and self-employed routes for the same work."
    },
    {
      "id": "sole-trader-tax",
      "name": "Sole-trader tax reserve",
      "url": "https://count.ie/finance/sole-trader-tax/",
      "purpose": "Compare employment and self-employed routes for the same work."
    },
    {
      "id": "paye-gross-up",
      "name": "Take-home salary to gross pay",
      "url": "https://count.ie/finance/paye-gross-up/",
      "purpose": "Compare employment and self-employed routes for the same work."
    },
    {
      "id": "employer-total-cost",
      "name": "Total employee cost",
      "url": "https://count.ie/hr/employer-total-cost/",
      "purpose": "Compare employment and self-employed routes for the same work."
    },
    {
      "id": "annual-small-gift-plan",
      "name": "Annual CAT small-gift plan",
      "url": "https://count.ie/finance/annual-small-gift-plan/",
      "purpose": "Explore another calculator in the same topic."
    }
  ],
  "relatedControls": [],
  "assumptionsAndLimitations": "Employer PRSI is your own assumption (default 11.25%, unverified). Cash comparison only for a single person aged 18–64 with standard credits. Salary and invoiced turnover are separate contracts. Employment rights, pension, sick pay, redundancy and employment-status checks are not equivalent. VAT, accountancy fees, capital allowances, losses and umbrella expense schemes are excluded.",
  "interpretation": "Compare paye net annual, umbrella net annual, sole trader net annual using matching periods and units. A total cost, a recurring payment and a percentage answer different questions. Check omitted costs and the timing of payments before using the result as a spending commitment.",
  "example": {
    "kind": "Illustrative, not personalised",
    "values": {
      "payeSalary": 70000,
      "employerPrsiPercent": 11.25,
      "employerOtherCosts": 0,
      "assignmentBudget": 95000,
      "umbrellaAnnualFee": 1200,
      "invoicedTurnover": 95000,
      "allowableCosts": 6000,
      "age": 35
    },
    "inputs": [
      {
        "label": "PAYE job: annual gross salary offered (€)",
        "value": "70,000"
      },
      {
        "label": "Employer PRSI rate (%)",
        "value": "11.25"
      },
      {
        "label": "Other fixed employer costs per year (€)",
        "value": "0"
      },
      {
        "label": "Umbrella: annual assignment budget paid to the umbrella (€)",
        "value": "95,000"
      },
      {
        "label": "Umbrella annual fee (€)",
        "value": "1,200"
      },
      {
        "label": "Sole trader: annual invoiced turnover excluding VAT (€)",
        "value": "95,000"
      },
      {
        "label": "Sole trader: annual allowable business costs (€)",
        "value": "6,000"
      },
      {
        "label": "Age reached in 2026",
        "value": "35"
      }
    ],
    "outputs": [
      {
        "key": "payeNetAnnualEuro",
        "label": "Paye Net Annual",
        "value": 50200.93,
        "displayValue": "€50,200.93"
      },
      {
        "key": "umbrellaNetAnnualEuro",
        "label": "Umbrella Net Annual",
        "value": 57040.14,
        "displayValue": "€57,040.14"
      },
      {
        "key": "soleTraderNetAnnualEuro",
        "label": "Sole Trader Net Annual",
        "value": 59278.01,
        "displayValue": "€59,278.01"
      }
    ],
    "displayValuesMayBeRounded": true,
    "scopeNote": "Only this fixed case is described. Other modes, dates and eligibility choices can give different results. Values include all public model settings, including dormant options; inputs list the active settings. Use the full input list, method and limitations together."
  },
  "provenance": {
    "publisher": "Count.ie",
    "publisherUrl": "https://count.ie/about/#publisher-profile",
    "pageUpdatedOn": "2026-10-16",
    "sourceCheckedOn": null,
    "reviewScope": "Any dated method notes below apply only to their stated scope. A formula or user-entered rate is not evidence that statutory rules are current.",
    "sourceBasis": "Uses the cited Revenue guidance for the stated method and scope. This is not Revenue approval or endorsement.",
    "authorityNote": "Count.ie publishes the calculated example. The linked official sources, where present, remain authoritative for the underlying rules. No official endorsement or professional review is implied."
  },
  "sources": [
    {
      "label": "Revenue tax bands and credits",
      "url": "https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx"
    },
    {
      "label": "Revenue: do you need to submit a tax return",
      "url": "https://www.revenue.ie/en/jobs-and-pensions/end-of-year-process/need-to-submit-a-tax-return.aspx"
    },
    {
      "label": "DSP Class S PRSI",
      "url": "https://www.gov.ie/en/department-of-social-protection/publications/prsi-class-s-rates/"
    }
  ],
  "frequentlyAskedQuestions": [
    {
      "question": "What happens if I increase paye job: annual gross salary offered (€) in this example?",
      "answer": "Changing paye job: annual gross salary offered (€) from 70,000 to 77,000, with the other example settings unchanged, changes paye net annual from €50,200.93 to €53,546.51. This isolates one input using the form's actual calculation. Compare changes separately rather than attributing a difference to several assumptions at once."
    },
    {
      "question": "What assumptions should I check for PAYE vs contractor vs umbrella?",
      "answer": "Employer PRSI is your own assumption (default 11.25%, unverified). Cash comparison only for a single person aged 18–64 with standard credits. Salary and invoiced turnover are separate contracts. Employment rights, pension, sick pay, redundancy and employment-status checks are not equivalent. VAT, accountancy fees, capital allowances, losses and umbrella expense schemes are excluded. The linked sources support the documented method, not every possible circumstance. Confirm transaction dates and eligibility where relevant, and distinguish a statutory rate from a rate you enter yourself."
    },
    {
      "question": "Why is the umbrella salary lower than the day rate I was quoted?",
      "answer": "The assignment budget pays the umbrella fee and the employer costs, including employer PRSI, before any gross salary is set. Only the remainder becomes salary, and that salary is then taxed through PAYE, so take-home pay is below what the headline budget suggests."
    },
    {
      "question": "Does the higher take-home figure mean contracting is better than a PAYE job?",
      "answer": "No. This compares cash only. Employment rights, pension, sick and holiday pay, redundancy protection, insurance and employment-status risk are not equivalent between the routes, and the calculator does not claim parity between them."
    },
    {
      "question": "Why are salary and invoiced turnover separate inputs?",
      "answer": "A PAYE offer and a contractor invoice are different contracts with different costs and risks. Entering them separately avoids treating one figure as a conversion of the other, and lets sole-trader costs be deducted from turnover before profit is taxed."
    }
  ],
  "citation": {
    "publisher": "Count.ie",
    "title": "PAYE vs contractor vs umbrella: fixed worked example",
    "url": "https://count.ie/finance/paye-vs-contractor-umbrella-comparison/#worked-example",
    "pageUpdatedOn": "2026-10-16",
    "text": "Count.ie. PAYE vs contractor vs umbrella: fixed worked example. Page updated 2026-10-16. https://count.ie/finance/paye-vs-contractor-umbrella-comparison/#worked-example"
  },
  "relatedGuideUrl": "https://count.ie/guides/contractor-paye-comparison/",
  "privacyNote": "Generated at build time from public example settings. No visitor inputs, saved profiles or chat messages are included. Query parameters do not recalculate this file."
}