Contracting in Ireland - Where to Pay Tax in UK or Ireland or both?

[shahids]

Hi Guys,

i am very new to this forum and contracting too, i got an offer from Ireland as a contractor for 6 months initially, i am confused where should i open the Limited Company in UK or in Dublin (Ireland).

Someone told me that you can open a limited company in UK and work in Ireland and you do not need to pay tax in Ireland.

Other person saying that if you are going for a short period you donot need to open a limited company in Ireland and do not need to pay tax either but if you stay for more then certain period (three or 6 months) then you have to pay tax in Ireland.

Can any of you advise me what should be the right decision?

1) Limited Company in UK and Tax in UK?
2) Limited Company in Ireland and Tax in Ireland?


I Will be grateful.


Thanks

Syed Shahid

[SueEllen]

Not true.

General rule in democratic nations is you pay tax where you do the work.

And this is the case in Ireland.

Also bad idea to screw over the Irish taxman if you are a UK resident.

[northernladyuk]

Hi Guys,

i am very new to this forum and contracting too, i got an offer from Ireland as a contractor for 6 months initially, i am confused where should i open the Limited Company in UK or in Dublin (Ireland).

Someone told me that you can open a limited company in UK and work in Ireland and you do not need to pay tax in Ireland.

Other person saying that if you are going for a short period you donot need to open a limited company in Ireland and do not need to pay tax either but if you stay for more then certain period (three or 6 months) then you have to pay tax in Ireland.

Can any of you advise me what should be the right decision?

1) Limited Company in UK and Tax in UK?
2) Limited Company in Ireland and Tax in Ireland?


I Will be grateful.


Thanks

Syed Shahid

Ltd Company in Ireland, tax in Ireland. The tax is substantial as is the cost of accommodation if in Dublin, so do your research before you agree a rate. Deloitte | Budget 2017 Tax Calculator (select not an employee)

I would suggest a 'Director Umbrella' Icon Accounting – Director Umbrella Company

Icon are pretty good. I use them, as I think does Stek.

Possibly you may 'get away' with a UK Ltd and tax in UK (some people do), but they may well catch up with you eventually.

[BlasterBates]

The general rule is you can work up to 90 days or 183 days depending on the country paying the tax of your home country if you are employed by a foreign company doing business in that country or you are subcontracted by that foreign company.

In all other cases you are subject to tax from day one. This is generally the case as contracts for foreign companies operating in another country are not the normal case.

Working for a foreign agency doesn't count as you will be charged out to the local client for your services and hence your income doesn't originate from the foreign agency.

It looks like you should be paying tax in Ireland from day one of your contract.

[northernladuk]

Plenty you threads to read here

https://www.google.co.uk/search?q=co...obile&ie=UTF-8

[stek]

Ltd Company in Ireland, tax in Ireland. The tax is substantial as is the cost of accommodation if in Dublin, so do your research before you agree a rate. Deloitte | Budget 2017 Tax Calculator (select not an employee)

I would suggest a 'Director Umbrella' Icon Accounting – Director Umbrella Company

Icon are pretty good. I use them, as I think does Stek.

Possibly you may 'get away' with a UK Ltd and tax in UK (some people do), but they may well catch up with you eventually.

Can't argue with that. I am with Icon too as NLUK says, very happy.

Return with Irish Director Umbrella is better than in UK with UK umbrella, forget Irish Ltd, there's no concept of dividends so all income drawn is taxed at personal tax rates cumulatively.

Biggest issue by far especially in Dublin is not only the price of accommodation, but finding it. Took me several months the first time I was here, stayed in hotel till then, this time I knew my way around a bit and found somewhere very quickly. Look on daft.ie or adverts.ie, also subscribe to boards.ie for general help with living here.

But it's a great place, like a slowed down UK, familiar but without the sheer pressure of congested UK.

Also be aware if dual taxation, it's a complex subject but at least it's more faffing about and more cost.

[northernladuk]

Can't argue with that. I am with Icon too as NLUK says, very happy.
.

I did? Jesus. I'm that good I'm giving quality advice without even realising it now.

[stek]

I did? Jesus. I'm that good I'm giving quality advice without even realising it now.

What's NorthernLadyUK's acronym then?

[northernladuk]

What's NorthernLadyUK's acronym then?

What ever you've got her on your speedial as I guess.

[VillageContractor]

If you pay tax in the country you work in are there any countries in Europe that have lower tax rates overall as a contractor?