Contracting in Ireland using UK Ltd Company

[coolkat]

Hi Experts!

I have been contracting in Ireland since November 2016 using my UK Ltd Company.

It was initially a short contract of only 6 weeks, so I didn't worry about making my company tax compliant at the time (I know, big mistake!).

I have being doing all my accounting correctly in the UK, but nothing done yet in Ireland...
The daily rate that was agreed, was based on UK tax calculations, so if I starting paying taxes over all my company's income, which can be twice as much as in the UK, I am doomed!!!

My idea was to pay myself through PAYE in Ireland enough to cover my expenses (excluding accommodation, which is recoverable up to a year), say 1,500.00 EUR a month.
Would also need to:
- process monthly Irish payroll and issue payslips
- register my company as a Non-resident for Tax in Ireland;
- run monthly returns to Irish Revenue (P30).

Has anyone successfully done this before?
Also, is it possible to arrange Dividends to be taxed solely in the UK? (so that I only pay income tax and CT in Ireland)

Any advice and suggestions will be greatly appreciated!

Thanks!

[WTFH]

Contracting in Ireland using UK Ltd Company

My first piece of advice would be to get an accountant who knows what to do.

Question: Are you direct with an end client, or are you working through an agency/third party?
If there is a company between you and the end client, where are they based and what currency are you billing in?
Is it pretty much full time in Ireland or do you work from home?
When you renegotiated your contract after 6 weeks, did you not consider these things back then?
How much longer does the contract run for?

[northernladyuk]

Hi Experts!

I have been contracting in Ireland since November 2016 using my UK Ltd Company.

It was initially a short contract of only 6 weeks, so I didn't worry about making my company tax compliant at the time (I know, big mistake!).

I have being doing all my accounting correctly in the UK, but nothing done yet in Ireland...
The daily rate that was agreed, was based on UK tax calculations, so if I starting paying taxes over all my company's income, which can be twice as much as in the UK, I am doomed!!!

My idea was to pay myself through PAYE in Ireland enough to cover my expenses (excluding accommodation, which is recoverable up to a year), say 1,500.00 EUR a month.
Would also need to:
- process monthly Irish payroll and issue payslips
- register my company as a Non-resident for Tax in Ireland;
- run monthly returns to Irish Revenue (P30).

Has anyone successfully done this before?
Also, is it possible to arrange Dividends to be taxed solely in the UK? (so that I only pay income tax and CT in Ireland)

Any advice and suggestions will be greatly appreciated!

Thanks!

If you are working physically in Ireland, then you should pay (the somewhat onerous) tax - income tax, PRSI, USC - in Ireland on your full income - CT and dividends are not a workable approach. And you'll need a PPSN. Icon Accounting are good (I use them and I think stek does too), and a Director's Umbrella may work out best for you.

You then need to sort out the mess of the last 9 months. I'm not sure Icon are the best to advise you on that but you could speak to them, and they'll introduce you to someone if they can't help.

Some UK based contractors seem to get away with it, if that's your thing.

Having said that, I have a colleague who is convinced he will get

[coolkat]

My first piece of advice would be to get an accountant who knows what to do.

Question: Are you direct with an end client, or are you working through an agency/third party?
If there is a company between you and the end client, where are they based and what currency are you billing in?
Is it pretty much full time in Ireland or do you work from home?
When you renegotiated your contract after 6 weeks, did you not consider these things back then?
How much longer does the contract run for?

1) I work in end client based in Dublin, but the contract was signed with a 3rd party. This 3rd party is also based in Dublin.

2) I invoice in EUR and receive into an UK EUR account at Barclays.

3) Work carried out in Ireland is full-time and 100% onsite (5 days a week).

4) Contract was extended a number of times. The last change came with "indefinite" end date but with a 4 weeks of notice if contract ends.

Based on these information, do you think you give me further advice?

Thanks!

[northernladuk]

4) Contract was extended a number of times. The last change came with "indefinite" end date but with a 4 weeks of notice if contract ends.

I have being doing all my accounting correctly in the UK, but nothing done yet in Ireland...

I'll bet you weren't as this gig is inside IR35 but that's irrelevant now....

[coolkat]

If you are working physically in Ireland, then you should pay (the somewhat onerous) tax - income tax, PRSI, USC - in Ireland on your full income - CT and dividends are not a workable approach. And you'll need a PPSN. Icon Accounting are good (I use them and I think stek does too), and a Director's Umbrella may work out best for you.

You then need to sort out the mess of the last 9 months. I'm not sure Icon are the best to advise you on that but you could speak to them, and they'll introduce you to someone if they can't help.

Some UK based contractors seem to get away with it, if that's your thing.

Having said that, I have a colleague who is convinced he will get

Hi @northernladyuk, thanks for your reply.

I am working physically in Ireland and have been staying for most of the time (normally travel to the UK once every 2/3 months only).

Do you think I can pay myself the amount of around 1,500.00 per month and prepare Irish PAYE over this amount?
It's definitely enough to cover all my expenses here, excluding accommodation of course.

Can I still keep CT and dividends solely taxable in the UK?

Thanks!!!

[coolkat]

I'll bet you weren't as this gig is inside IR35 but that's irrelevant now....

Hi northernladuk,
Could you please give me more information?
I am completely clueless on this IR35 matter...

[northernladuk]

I'm pretty sure you won't get an advice on what is acceptable to 'get away' with and if you will or won't.

If that's your line of questioning you need to be asking what the penalties for getting caught are as well so you can weight up the risk.

[northernladuk]

Hi northernladuk,
Could you please give me more information?
I am completely clueless on this IR35 matter...

Not just on IR35 it appears... but it's irrelevant in this case so don't worry... Well it will be if you pay the correct taxes in Ireland. If you are trying to 'get away' with it and keep a divi/PAYE scheme going it will be relevant.

[coolkat]

Not just on IR35 it appears... but it's irrelevant in this case so don't worry... Well it will be if you pay the correct taxes in Ireland. If you are trying to 'get away' with it and keep a divi/PAYE scheme going it will be relevant.

Thanks for your advice.
I am not trying to "get away" with anything, I just want to comply with tax rules in Ireland.
As mentioned previously, I agreed a rate based on a 6 week contract and UK taxes solely.
But ended up staying much longer than planned.
So that's why I need a solution that is both most tax efficient as possible and is completely compliant at the same time...