What day rate matches a salary?

Divide the salary by the days you'll actually bill. Then add a margin for the paid holidays, pension, sick pay and security you give up, and for your own costs. This calculator shows take-home at your figures.

Are dividends taxed at 25%?

No. The 25% Dividend Withholding Tax (DWT) is paid in advance. Dividends are taxed as your income, at up to 40% income tax plus USC and PRSI, and the DWT comes off that.

Can I be a contractor as a sole trader?

Yes. Your profit is taxed as self-employed income, with the earned income credit and Class S PRSI. Some clients and agencies prefer to contract with a company.

Contracting

Contractor or PAYE job: which pays more?

Compare a permanent salary with contracting as a sole trader, through an umbrella, or through your own company.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

What day rate matches a salary?: Divide the salary by the days you'll actually bill. Then add a margin for the paid holidays, pension, sick pay and security you give up, and for your own costs. This calculator shows take-home at your figures.
Are dividends taxed at 25%?: No. The 25% Dividend Withholding Tax (DWT) is paid in advance. Dividends are taxed as your income, at up to 40% income tax plus USC and PRSI, and the DWT comes off that.
Can I be a contractor as a sole trader?: Yes. Your profit is taxed as self-employed income, with the earned income credit and Class S PRSI. Some clients and agencies prefer to contract with a company.

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