Umbrella Company vs Limited Company in Ireland: Complete 2026 Comparison

If you earn over €50,000 per year as a contractor in Ireland and plan to work independently for more than 12 months, a limited company will almost always leave you with significantly more money after tax. Below that threshold, or for short-term contracts where speed and simplicity matter more than tax efficiency, an umbrella company is the pragmatic choice.

The difference is not trivial. At a day rate of €500, the gap between an umbrella and a well-structured limited company can be €8,000 to €12,000 per year in your pocket. At €700/day, the gap widens further. But the limited company route comes with real administrative responsibilities, annual filing obligations, and professional fees that you need to weigh honestly.

This guide gives you the complete picture for Ireland in 2026: how each structure works, what you actually take home at realistic day rates, the admin burden on each side, and the specific Irish tax rules that drive the numbers. No vague generalisations. Just the calculations and the context you need to make the right call.

Quick Comparison: Umbrella vs Limited Company in Ireland

If you are coming from the UK contracting market, the Irish system differs in several important ways. There is no direct equivalent of IR35 in Ireland, though Revenue does enforce employment status rules. For the UK comparison, see our umbrella vs limited company UK guide.

How Umbrella Companies Work in Ireland

An umbrella company employs you on a contract of service. You perform work for your end client, but legally you are an employee of the umbrella. The umbrella invoices the client or agency, processes payroll on your behalf, and pays you a net salary after all statutory deductions.

The Payment Chain

1. Your end client pays the recruitment agency (or the umbrella directly) for your services
2. The agency deducts its margin and passes the remainder to the umbrella
3. The umbrella deducts its margin (typically €150-300 per month or a percentage of billings)
4. The umbrella calculates and deducts PAYE income tax, PRSI, and USC
5. The umbrella pays employer PRSI on your behalf (from your gross billings, reducing your taxable amount)
6. You receive your net pay as an employee, typically weekly or fortnightly

What Gets Deducted Before You See Your Pay

This is where many contractors get surprised. The deductions from your gross billings include more than just income tax.

The employer PRSI at 11.15% is a significant cost that comes out of your gross billings before your taxable salary is even calculated. Many contractors overlook this when comparing structures.

Major Umbrella Companies in Ireland

Several established providers operate in the Irish market:

• Contracting PLUS: one of the largest Irish contractor service providers. Offers umbrella, limited company support, and pension administration.
• Fenero: provides umbrella payroll services with transparent fee structures. Popular with IT and pharma contractors.
• Icon Accounting: offers both umbrella and limited company accounting packages with fixed monthly fees.
• Cpl: one of Ireland's biggest recruitment firms, also operates an umbrella payroll division.

When choosing an umbrella, check these specifics:

• Fee structure: flat monthly fee vs percentage of billings. A flat fee is almost always better at higher day rates.
• Expense policy: some umbrellas offer flat-rate expense allowances (e.g. travel and subsistence), others do not. The rules are strict, and Revenue audits these claims.
• Payment frequency: weekly, fortnightly, or monthly. This matters for your cash flow.
• Holiday pay handling: under Irish employment law, you accrue holiday pay as an employee. Some umbrellas include this in your rate, others pay it separately.
• Pension facilitation: some umbrellas will set up PRSA contributions from your pre-tax salary. This is valuable and worth asking about.

Umbrella Advantages

• Zero admin: no company registration, no annual returns, no B1 filing, no corporation tax return
• Instant start: you can begin working and getting paid within 24 hours
• Employment rights: statutory annual leave (20 days minimum), sick pay, public holidays, maternity/paternity leave entitlements
• No personal liability: you are not a company director, so no director obligations under the Companies Act 2014
• Revenue compliance is handled for you: the umbrella manages all PAYE reporting, monthly returns, and year-end reconciliation

Umbrella Disadvantages

• Higher effective tax rate: employer PRSI (11.15%) comes from your billings, and you cannot split income between salary and dividends
• Limited expense claims: as an employee, you can only claim expenses that meet the strict employment deduction rules. No home office equipment, no business entertainment, very limited travel
• No pension flexibility: you cannot make employer pension contributions (which are corporation tax deductible in a limited company)
• No retained profits: every euro of your billings flows through as salary. There is no option to leave money in the company for future use or to smooth your tax position across years
• Margin erodes your income: €150-300/month to the umbrella, plus you bear the employer PRSI cost

How Limited Companies Work for Irish Contractors

When you set up a limited company, you become the director and typically the sole shareholder. Your company contracts with the client or agency, invoices for your work, receives the gross payment, and then you decide how to extract money: salary, dividends, pension contributions, or a combination.

This flexibility is the core advantage. Instead of everything being taxed as employment income through PAYE at up to 40% plus PRSI and USC, you can structure your remuneration to minimise total tax.

Setting Up a Limited Company in Ireland

Registration is straightforward and relatively cheap compared to many jurisdictions.

Step 1: Choose your company name. Check availability on the CRO (Companies Registration Office) website. The name must not be identical or too similar to an existing company.

Step 2: Prepare your constitution. Since the Companies Act 2014, most single-director companies use the LTD (private company limited by shares) type with a one-document constitution.

Step 3: Register with the CRO. File the A1 form online via CORE (Companies Online Registration Environment). The filing fee is approximately €100. Processing typically takes 5-10 business days.

Step 4: Register for tax with Revenue. Once your company is incorporated, register for Corporation Tax, VAT (if your turnover exceeds or will exceed the threshold), and PAYE as an employer. This is done through Revenue Online Service (ROS).

Step 5: Open a business bank account. Irish banks (AIB, Bank of Ireland, Permanent TSB) and newer providers (Revolut Business, Wise Business) all offer business accounts. Traditional banks can take 2-4 weeks for account opening.

Step 6: Appoint an accountant. For contractor limited companies, expect to pay €150-250 per month for a comprehensive service covering bookkeeping, payroll, VAT returns, corporation tax, and annual CRO filings.

For a more detailed walkthrough of the incorporation process, see our guide to setting up an Irish limited company in 2026.

The Salary and Dividends Strategy

This is where the limited company saves you real money. Instead of taking all your income as salary (which attracts income tax, PRSI, and USC at the highest marginal rates), you pay yourself a modest salary and take the remainder as dividends.

Optimal salary level for 2026: most accountants recommend a salary of approximately €18,000 to €25,000 per year. This is enough to:

• Utilise your personal tax credits (single person credit €1,875, employee credit €1,875)
• Maintain your PRSI contribution record for State Pension eligibility (you need 40 qualifying years)
• Stay within the 20% income tax band for a large portion of the salary

The company pays 12.5% corporation tax on trading profits. After that, you can distribute dividends. Dividends are subject to income tax, PRSI, and USC in your hands, but critically, there is no employer PRSI on dividends. This 11.15% saving is the single biggest advantage of the limited company structure.

For the full breakdown of how to optimise your salary and dividend split, see our salary vs dividends guide for Irish directors.

Limited Company Advantages

• Lower effective tax rate: the combination of 12.5% corporation tax plus dividend taxation is typically lower than marginal PAYE rates, especially above €50,000
• Expense deductions: you can claim legitimate business expenses before corporation tax. This includes home office costs, equipment, software, professional development, business insurance, and travel
• Pension contributions: the company can make employer contributions to a PRSA or executive pension scheme. These are a deductible business expense for the company and not treated as a benefit-in-kind for you (within Revenue limits)
• Retained profits: you can leave money in the company to smooth income across years, build reserves, or invest through the company
• Professional credibility: some clients and agencies prefer working with limited companies
• Small benefit exemption: the company can provide you with a non-cash benefit (e.g. a voucher) worth up to €1,000 per year tax-free

Limited Company Disadvantages

• Administrative burden: annual CRO returns (B1 form), corporation tax return (CT1), monthly/bi-monthly VAT returns, monthly payroll submissions (PAYE real-time reporting), and financial statements
• Professional costs: accountancy fees of €1,800-3,000 per year, plus potential company secretarial costs
• Director responsibilities: you have legal obligations under the Companies Act 2014, including maintaining proper books and records, filing on time, and acting in the company's best interest
• Close company surcharge: if you retain profits above what Revenue considers reasonable (and those profits include investment income), a 20% surcharge can apply. For contractor companies earning only trading income, this is rarely an issue if you extract profits within 18 months
• Dividend withholding tax (DWT): when declaring dividends, the company must deduct 25% DWT at source and remit it to Revenue. You then claim credit for this against your personal income tax liability. The administrative overhead of DWT is real, even though it is a credit, not an additional cost

Tax Comparison: Umbrella vs Limited Company at Different Day Rates

Let's look at realistic numbers. All examples assume 220 working days per year, no agency margin (to isolate the structural comparison), and standard 2026 Irish tax rates.

Scenario 1: €300/Day (€66,000 Annual Gross)

Through an Umbrella:

Through a Limited Company:

Difference: approximately €839 less through the limited company at this rate. After accounting for the additional admin time and complexity, the umbrella is the better choice at €300/day. The limited company only starts to pull ahead when you factor in pension contributions or have significant claimable expenses.

Scenario 2: €500/Day (€110,000 Annual Gross)

Through an Umbrella:

Through a Limited Company:

Difference: approximately €7,737 more total compensation through the limited company. Even looking only at cash in hand (€53,203 vs €60,466), the umbrella appears to win, but the €15,000 pension contribution is tax-free money building your retirement fund. If you value that pension contribution at its full value, the limited company is decisively ahead.

Without the pension contribution, the limited company still saves approximately €4,000-5,000 per year at this day rate through the corporation tax and dividend structure alone.

Scenario 3: €700/Day (€154,000 Annual Gross)

Through an Umbrella:

Through a Limited Company:

Difference: approximately €12,988 more total compensation through the limited company. At this level, even without pension contributions, the limited company saves roughly €8,000-10,000 per year. The pension layer adds another €25,000 of tax-sheltered wealth building that is simply not available through an umbrella.

Administrative Burden: An Honest Comparison

The tax savings of a limited company are real, but so is the additional work. Here is a realistic picture of what each structure requires from you.

Umbrella Company Admin

Your obligations are minimal:

• Submit timesheets: weekly or fortnightly to the umbrella or agency
• Provide expense receipts: if you claim any expenses (most umbrellas offer limited schemes)
• File a personal tax return (Form 11 or Form 12): if you have additional income sources or want to claim additional credits. Otherwise, the PAYE system handles it
• Time required: approximately 1-2 hours per week

Limited Company Admin

You (or your accountant) must handle:

• Monthly payroll submission: PAYE real-time reporting to Revenue every time you pay yourself
• Monthly/bi-monthly VAT returns: if VAT registered (see our VAT registration guide for Ireland)
• Bookkeeping: recording all income, expenses, and transactions. At minimum, reconcile bank statements monthly
• Annual financial statements: prepared by your accountant, filed with the CRO
• Annual return (B1 form): filed with the CRO within 56 days of the annual return date. Late filing means you lose the audit exemption for two years
• Corporation tax return (CT1): filed within 9 months of your financial year end
• Preliminary tax: corporation tax must be paid in advance. Small companies (tax liability under €200,000) pay within 31 days of their year end
• Personal tax return (Form 11): as a company director, you are a chargeable person and must file an annual return, including declaring dividend income
• Director loan account management: if you take money from the company outside of salary or dividends, it becomes a director loan and has tax implications
• Time required: approximately 3-5 hours per week if you handle bookkeeping yourself, or 1-2 hours per week if you have a good accountant and use cloud software

The Real Cost of Limited Company Admin

Beyond accountancy fees (€1,800-3,000/year), factor in:

Pension: The Hidden Advantage of a Limited Company

Pension planning is one of the most significant, and most overlooked, advantages of operating through a limited company in Ireland.

How Pensions Work Through an Umbrella

As an employee of the umbrella, you can contribute to a PRSA (Personal Retirement Savings Account) from your after-tax salary. Some umbrellas facilitate payroll deductions for PRSA contributions, giving you tax relief at your marginal rate. However:

• Contributions come from your already-taxed salary
• There is no "employer contribution" in any meaningful sense (you are paying for it from your billings either way, but the tax treatment differs)
• Annual contribution limits are age-based percentages of your net relevant earnings

How Pensions Work Through a Limited Company

Your company can make employer contributions to a PRSA or an executive pension scheme. These contributions are:

• Tax-deductible for the company: they reduce your corporation tax bill
• Not a benefit-in-kind for you: they are not treated as income in your hands at the time of contribution
• Not subject to PRSI or USC: unlike salary, there is no employee PRSI, employer PRSI, or USC on employer pension contributions
• Subject to Revenue funding limits: the maximum fund you can build tax-efficiently is currently around €2 million (the Standard Fund Threshold)

The age-based limits on personal contributions (as a percentage of remuneration) do not apply to employer contributions in the same way. For an executive pension, the Revenue maximum is based on reaching a target retirement fund, which gives significant scope for higher contributions, particularly if you are over 40 and have not built substantial pension savings.

Worked Example: Pension Impact at €110,000 Gross

Without pension: limited company saves ~€4,000-5,000 over umbrella.

With €15,000 employer pension contribution:

• Company saves €1,875 in corporation tax (12.5% of €15,000)
• You avoid approximately €7,500 in income tax, PRSI, and USC that you would have paid if that €15,000 came as salary or dividends
• Total tax saving from the pension route: approximately €9,375
• Plus the pension fund itself grows tax-free

This is why accountants working with contractors consistently recommend the limited company route for anyone earning above the €50,000 threshold who plans to contract for more than a year. The pension advantage alone can justify the switch.

Revenue Compliance: Employment Status and the "Code of Practice"

Ireland does not have a direct equivalent of the UK's IR35 legislation. However, Revenue does enforce rules around employment status, and getting this wrong can be expensive.

Revenue's Employment Status Tests

Revenue uses the Code of Practice for Determining Employment Status (updated 2024) to decide whether a worker is an employee or self-employed. Key factors include:

• Control: does the client control how, when, and where you do the work?
• Integration: are you integrated into the client's organisation, or do you operate independently?
• Personal service: must you do the work personally, or can you send a substitute?
• Financial risk: do you bear any financial risk? Can you profit from efficient work or lose money from inefficient work?
• Equipment: do you provide your own tools and equipment?
• Exclusivity: are you free to work for other clients?

If Revenue determines that you are, in substance, an employee of your client despite operating through a limited company, they can reclassify you. This means:

• Your company would owe employer PRSI on all payments made to you
• You would owe employee PRSI and USC adjustments
• Penalties and interest may apply

How to Protect Your Limited Company Status

To maintain genuine self-employment status:

1. Have multiple clients (or at least the freedom to take on other work)
2. Use your own equipment where practical
3. Include a substitution clause in your contract (and be prepared to exercise it)
4. Control your own working hours and methods rather than being directed like an employee
5. Invoice for deliverables rather than time where possible
6. Maintain business insurance (professional indemnity, public liability)
7. Have a dedicated business premises or home office

The reality is that many IT, pharma, and financial services contractors in Ireland operate through limited companies without issue, provided the contract and working arrangements genuinely reflect self-employment. But if you sit at the client's desk, use their laptop, work their hours, and cannot refuse work or send a substitute, Revenue has grounds to challenge.

Umbrella Companies and Revenue Compliance

If you work through an umbrella, there is no employment status risk. You are already taxed as an employee. This is one of the genuine advantages of the umbrella route, particularly for contractors who are uncomfortable with compliance risk or whose working arrangements look more like employment.

Insurance Requirements

Both structures require some form of insurance, but the requirements differ.

Umbrella Company Insurance

The umbrella typically covers you under its own policies:

• Employer's liability insurance: required by law for all employers
• Public liability insurance: usually included in the umbrella's coverage
• Professional indemnity insurance: check whether the umbrella provides this or whether you need your own. Many IT and consulting contracts require PI cover of €1-2 million

Limited Company Insurance

You need to arrange your own cover:

• Professional indemnity insurance: €300-600/year for typical contractor cover (€1-2 million)
• Public liability insurance: €300-800/year depending on the nature of your work
• Employer's liability insurance: technically required if your company employs anyone (including you as a director/employee). Some accountants advise it, others consider it optional for single-director companies
• Directors and officers insurance: optional but advisable, especially if you take on larger contracts. Protects you personally against claims arising from your decisions as a director

VAT Considerations

VAT registration is relevant for both structures, but affects you differently.

Umbrella and VAT

The umbrella company handles VAT. You do not need to be VAT registered personally, and you do not file VAT returns. The umbrella charges VAT on invoices to the client (if applicable) and deals with all VAT compliance.

Limited Company and VAT

If your annual turnover exceeds €42,500 for services (the 2026 threshold for service providers), you must register for VAT. In practice, most contractors earning the day rates discussed in this article will be above this threshold.

VAT registration means:

• You charge 23% VAT on your invoices (standard rate for most professional services)
• You reclaim VAT on business purchases (equipment, software, accountancy fees)
• You file VAT returns every two months (or monthly if you choose)
• The net effect is usually neutral, since most of your income comes from B2B services where the client reclaims the VAT you charge

For contractors providing services to clients outside Ireland (e.g. servicing a UK or EU client from Ireland), the reverse charge mechanism may apply, meaning you do not charge VAT on the invoice. Your accountant will advise on the correct VAT treatment for cross-border services.

For a full guide to the thresholds and obligations, see our VAT registration guide for Ireland.

When the Umbrella is the Right Choice

Despite the tax advantages of a limited company, there are genuine scenarios where an umbrella is the better option:

Short-term contracts (under 6 months). The setup costs, accountancy fees, and administrative overhead of a limited company are hard to justify for a short engagement. By the time you are fully set up and operational, the contract may be ending.

Day rates below €300. At lower day rates, the tax savings of a limited company are modest (or even negative after accounting for professional fees). The umbrella's simplicity wins.

First-time contractors. If you have never contracted before, starting with an umbrella lets you test the waters without committing to company formation. You can always switch to a limited company after 6-12 months once you are confident contracting suits you.

Complex personal tax situations. If you have other significant income sources (a spouse with high income, rental property, investment income), the interaction between your contractor income and your overall tax position may reduce the limited company advantage. Get specific advice before committing.

Contractors who genuinely hate admin. Some people will always resent bookkeeping, filing deadlines, and the mental load of running a company. If that describes you, the few thousand euro you save through a limited company may not be worth the stress. The umbrella handles everything.

Contracts that look like employment. If you work full-time at one client's premises, use their equipment, follow their processes, and cannot substitute or take on other work, operating through an umbrella is the honest and compliant approach. Using a limited company in genuinely employed circumstances is a Revenue risk.

When the Limited Company is the Right Choice

Day rates above €400 with contracts lasting over 12 months. This is the sweet spot. The tax savings are material (€5,000+ per year), and the administrative costs are spread over enough time to be worthwhile.

Contractors who want to build pension wealth. The employer pension contribution route through a limited company is one of the most tax-efficient wealth-building tools available to contractors in Ireland. If you are over 35 and have not built significant pension savings, this alone can justify the limited company structure.

Contractors with significant business expenses. If you have genuine business costs (equipment, software subscriptions, home office, professional development, travel to client sites), a limited company lets you deduct these before corporation tax. Through an umbrella, most of these expenses are not claimable.

Contractors who plan to build a business. If you see contracting as the start of a wider business (hiring subcontractors, building a product, expanding your service offering), having a limited company in place from day one is the right foundation.

Contractors working with multiple clients. Multiple concurrent clients strengthen your self-employment status with Revenue and justify the limited company structure. They also reduce your dependency on any single client.

Switching from Umbrella to Limited Company

Many contractors start with an umbrella and switch to a limited company once they have established themselves. The process is straightforward:

1. Incorporate your company via the CRO (5-10 business days, ~€100)
2. Register for taxes via ROS (Corporation Tax, PAYE, and VAT if applicable)
3. Open a business bank account (allow 2-4 weeks for traditional banks)
4. Appoint an accountant and set up your bookkeeping system
5. Notify your agency or client that you are switching from umbrella to limited company. Most agencies and clients are familiar with this and will simply update the invoicing arrangement
6. Give notice to your umbrella company per their terms (usually 1-4 weeks)
7. Ensure no gap in insurance coverage between the umbrella's policies and your own

The transition can usually be completed within 2-4 weeks with good planning.

Irish Tax Rates: 2026 Reference

For completeness, here are the key rates used throughout this guide.

Income Tax

Standard tax credits: single person €1,875, employee (PAYE) credit €1,875, earned income credit €1,875 (self-employed).

Universal Social Charge (USC)

PRSI

Corporation Tax

Other Key Rates

Common Mistakes to Avoid

Whether you choose umbrella or limited company, these mistakes trip up Irish contractors:

Not checking the umbrella's full cost. Some umbrellas advertise low monthly fees but deduct additional charges (admin fees, insurance levies, holiday pay handling charges) that reduce your net pay. Always ask for a worked example showing every deduction from gross to net.

Taking too much salary from a limited company. The whole point of the limited company structure is the salary/dividend split. If you pay yourself €80,000 in salary because you want the PRSI contributions for mortgage purposes, you lose most of the tax advantage. Work with your accountant to find the right balance.

Ignoring PRSI contribution records. The State Contributory Pension requires 40 qualifying years of PRSI contributions (520 contributions at Class A). If you take a very low salary to minimise tax, ensure you are still making enough PRSI contributions. The minimum weekly contribution for a qualifying week is based on earning at least €38 per week.

Missing CRO filing deadlines. If you file your annual return (B1) late, your company loses the audit exemption for two years. This means you must pay for a full statutory audit, which costs €2,000-5,000 on top of your normal accountancy fees. Set calendar reminders well in advance.

Forgetting preliminary tax. Corporation tax preliminary payments must be made before the final liability is calculated. Missing preliminary tax deadlines incurs interest charges. Your accountant should handle this, but make sure they have the cash available in the company account.

Not registering for VAT when required. If your turnover exceeds €42,500 for services and you have not registered, Revenue can backdate the registration and charge you VAT that you should have been collecting. You cannot reclaim this from past clients.

Mixing personal and business expenses in a limited company. Keep your personal and business finances completely separate. Using the company card for personal purchases creates benefit-in-kind issues and makes your accounts messy. This is one of the most common reasons Revenue opens an audit on small companies.

How AccountsOS Helps Irish Contractors

Whether you operate through an umbrella or a limited company, AccountsOS gives you clarity over your finances. Chat with Finn, our AI assistant, to understand your tax position, track expenses, manage receipts, and stay on top of deadlines.

For limited company contractors, AccountsOS handles transaction categorisation against the Irish chart of accounts, tracks your salary and dividend payments, monitors your corporation tax liability, and alerts you to upcoming filing deadlines. For the full breakdown of Irish payroll obligations, see our PAYE, PRSI and USC guide.

Frequently Asked Questions

Is it worth setting up a limited company for contracting in Ireland?

Yes, if you earn above €50,000 per year and expect to contract for at least 12 months. At that level, the combination of lower effective tax rates through the salary/dividend split, tax-deductible pension contributions, and broader expense claims typically saves €5,000 to €15,000 per year compared to an umbrella. Below €50,000 or for short engagements, the savings may not justify the additional admin and professional fees.

How much does an umbrella company cost in Ireland?

Most Irish umbrella companies charge between €150 and €300 per month as their fee. However, the true cost is higher because employer PRSI (11.15%) comes out of your gross billings before your taxable salary is calculated. At a gross billing of €110,000, this means approximately €12,000 goes to employer PRSI that you never see. Always ask the umbrella for a full gross-to-net calculation before signing up.

Do I need an accountant for my limited company?

Technically, no. You can file your own annual returns and corporation tax returns. Practically, yes. The complexity of Irish tax compliance, including PAYE real-time reporting, VAT returns, corporation tax calculations, and annual CRO filings, means the risk of errors (and the penalties for them) far outweighs the €150-250 per month a good accountant costs. A specialist contractor accountant will also advise on the optimal salary/dividend split and pension strategy, which more than pays for their fees.

Can I switch from an umbrella to a limited company mid-contract?

Yes. Most agencies and clients are comfortable with this. You incorporate your company, register for taxes, notify the agency, and start invoicing through the limited company instead of the umbrella. The transition usually takes 2-4 weeks. Check your umbrella's notice period, which is typically 1-4 weeks, and ensure your insurance coverage continues without gaps.

Is there an IR35 equivalent in Ireland?

There is no legislation called IR35 in Ireland. However, Revenue enforces employment status rules through the Code of Practice for Determining Employment Status. If Revenue determines that you are, in substance, an employee despite operating through a limited company, they can reclassify you and seek back-payment of employer PRSI, employee PRSI, and USC, plus penalties and interest. The tests focus on control, integration, personal service, financial risk, and exclusivity.

What happens to my umbrella holiday pay?

Under Irish employment law, umbrella company employees accrue statutory annual leave (8% of hours worked, or 20 days per year for full-time). Some umbrellas include this in your headline rate and pay it as you go. Others accrue it separately and pay it when you take time off. When comparing umbrella offers, check how holiday pay is handled, because it affects your effective weekly take-home.

Can I claim expenses through an umbrella company in Ireland?

Only very limited expenses. As an employee, you can claim for travel and subsistence under Revenue rules if you are working at a temporary workplace (not your normal place of work) and your umbrella facilitates this. You cannot claim for home office equipment, business entertainment, professional development, or most other costs that a limited company director could deduct. Some umbrellas offer flat-rate expense schemes, but these are frequently scrutinised by Revenue.

What pension should I set up as a contractor in Ireland?

If you operate through a limited company, an executive pension scheme or company PRSA with employer contributions is the most tax-efficient option. The company gets a corporation tax deduction, and you avoid income tax, PRSI, and USC on the contribution. If you are with an umbrella, a personal PRSA with contributions from your net salary is the main option. You get income tax relief at your marginal rate, but USC and PRSI still apply to the income before the contribution. In both cases, the fund grows tax-free and you can access it from age 50 (for occupational pensions) or 60 (for PRSAs).