Contracting in Ireland using UK Ltd Company

[northernladyuk]

I did this first time I worked here, you register in UK with EC Sales on government gateway, enter sales in that, charge no VAT, but include agents VAT number on each invoice.

Simples.

But the OP is resident (and tax resident) in Ireland. Can you even use a UK based Ltd for contracting? Could an Irish contractor move to the UK, become resident, and try to operate using an Irish Ltd, and therefore not charge VAT. It's hard to see a solution to unpick this, but sooner faced, sooner fixed. Plenty of UK contractors doing similar stuff so won't be the first.

[coolkat]

I use Icon too, couple of things, Irish Limited co’s don’t have the concept of dividends, relocation costs are only claimable from the revenue for the last three months and a question to end, how many days over the term of this contract have you spent in Uk?

Heard of Icon, but got some great advice from OSK also.
Spending majority of time in Ireland...

[WTFH]

But the OP is resident (and tax resident) in Ireland. Can you even use a UK based Ltd for contracting? Could an Irish contractor move to the UK, become resident, and try to operate using an Irish Ltd, and therefore not charge VAT. It's hard to see a solution to unpick this, but sooner faced, sooner fixed. Plenty of UK contractors doing similar stuff so won't be the first.

So, by being tax resident in Ireland, his personal tax should be paid there at Irish tax rates.
Separate to that, if he wants to run it through his UK company, then it should be paying the relevant UK taxes on its business, then paying him.

If he explains his full story to his accountant, and his accountant is versed in UK and Irish tax laws, then it should be fairly straightforward to sort out. It won't be efficient at any level, but it should be straightforward.
Inefficiencies include:
1. Foreign currency conversion costs on the company money coming in.
2. Full company taxes being UK payable.
3. No dividends etc from UK company - everything has to go out as salary.
4. Salary needs converting back to EUR to be spendable
5. Doubtful on the accommodation being able to come out of company funds.
6. The occasional trip to the UK definitely not being expensable.

I'd definitely go with some of the suggestions above, rather than trying to do it yourself. I'm also very concerned that you say you have a UK accountant, but for the last 8 months they've been happy with the way you have been running your business.
I suspect your accountant is going to have fun trying to work out your personal tax return to April 16. It sounds like a bit of a train smash to me.

[northernladyuk]

Heard of Icon, but got some great advice from OSK also.
Spending majority of time in Ireland...

You are resident in Ireland. You are also tax resident in Ireland. You are working in Ireland.

If you pay yourself divis from your UK Ltd, are you declaring it on your Irish self-assessment?

[northernladyuk]

So, by being tax resident in Ireland, his personal tax should be paid there at Irish tax rates.
Separate to that, if he wants to run it through his UK company, then it should be paying the relevant UK taxes on its business, then paying him.

If he explains his full story to his accountant, and his accountant is versed in UK and Irish tax laws, then it should be fairly straightforward to sort out. It won't be efficient at any level, but it should be straightforward.
Inefficiencies include:
1. Foreign currency conversion costs on the company money coming in.
2. Full company taxes being UK payable.
3. No dividends etc from UK company - everything has to go out as salary.
4. Salary needs converting back to EUR to be spendable
5. Doubtful on the accommodation being able to come out of company funds.
6. The occasional trip to the UK definitely not being expensable.

I'd definitely go with some of the suggestions above, rather than trying to do it yourself. I'm also very concerned that you say you have a UK accountant, but for the last 8 months they've been happy with the way you have been running your business.
I suspect your accountant is going to have fun trying to work out your personal tax return to April 16. It sounds like a bit of a train smash to me.

You possibly can pay divis, but you'd have to pay Irish taxes on it - and it is taxed as Irish salary. And you've already paid UK CT.


OP, do you even have a PPSN?

[coolkat]

You possibly can pay divis, but you'd have to pay Irish taxes on it - and it is taxed as Irish salary. And you've already paid UK CT.


OP, do you even have a PPSN?

I haven't paid UK CT, just NI on salary.
I do have a PPS number, but how does that change anything?

[WTFH]

I haven't paid UK CT, just NI on salary.
I do have a PPS number, but how does that change anything?

Where have you been paying personal tax for the last 8 months?

[northernladyuk]

I haven't paid UK CT, just NI on salary.
I do have a PPS number, but how does that change anything?

Not having a PPSN would be worse!

OK - so you are paying NI on the salary in the UK. Presumably no income tax as under threshold. Firstly, you are resident in Ireland and working in Ireland, so you should be paying tax on that income in Ireland.

Next, have you been taking divis?

[coolkat]

Where have you been paying personal tax for the last 8 months?

I have been paying NI in the UK (IT not liable), CT and DT haven't being paid yet since my UK accountant has not yet filed for anual tax returns...

[coolkat]

Not having a PPSN would be worse!

OK - so you are paying NI on the salary in the UK. Presumably no income tax as under threshold. Firstly, you are resident in Ireland and working in Ireland, so you should be paying tax on that income in Ireland.

Next, have you been taking divis?

I haven't set up anything in Ireland yet.
Everything is UK based up until now.
I have being paying dividends in EUR though...