Advice For Unusual Tax Situation - Possible?

[DaaaaaaaaaaN]

I'm living in the UK and will be permanently moving home to Ireland next month. My current company would like to keep me on (currently a permie), but unfortunately they can only retain my services as a contractor as they have no tax base in Ireland to support me as a permie. I'm wondering if I went back as an Irish contractor would I be opening a can of worms with the HMRC? I would be going through an Irish umbrella company and would be an Irish tax resident with no more physical ties to the UK. It gets a little messy as I have previously contracted with this company through my UK Ltd company before taking a permanent role last year.

Here is the TLDR breakdown:
- I worked for 2 years as a contractor for a company.
- I then went perm with this company, and subsequently closed my Ltd company via MVL using ER in 2020.
- I plan to move to Ireland, then start a new contract with the same company as an Irish contractor (I would be working & living in Ireland via an Irish Umbrella company who would pay me as a PAYE employee).

I would like to continue working for this company, but obviously I don't want to fall afowl of any HRMC rules regarding IR35 and/or TAAR.

Any advice would be appreciated on whether this would be viable. Also, any pointers for where I could get professional advice on this would be great!

[Fred Bloggs]

If you live and work in Republic of Ireland, it's nothing to do with the UK's tax authorities. Location of client company isn't really relevant.

[DaaaaaaaaaaN]

If you live and work in Republic of Ireland, it's nothing to do with the UK's tax authorities. Location of client company isn't really relevant.

That is also what myself and my accountant think.

Just concerned that if a retrospective IR35 case was opened against my Ltd company in the UK, would the HMRC take a negative stance on me closing down my Ltd company, going perm, then going back as an Irish contractor to the same company? Or is that completely irrelevant now that I'm an Irish tax resident?

[northernladuk]

That is also what myself and my accountant think.

Just concerned that if a retrospective IR35 case was opened against my Ltd company in the UK, would the HMRC take a negative stance on me closing down my Ltd company, going perm, then going back as an Irish contractor to the same company? Or is that completely irrelevant now that I'm an Irish tax resident?

It would certainly help their case if they could prove you were flip flopping in and out of contract/employment so I'm imagine they would use it if it suited them. It does sound like they've got more than enough to nail you without it though.

It's all in the details as well, of which there are none. It could be you've moved around enough for it not to be an issue. We just don't know and I'd say doesn't really matter a year down the line.

All that said I am just guessing. It's never happened and if you are a year down the line it is unlikely to do so. HMRC will have more than enough to do with the outside inside still at the same company contractors come April so I'd just get on with it and stop worrying.

[DaaaaaaaaaaN]

It would certainly help their case if they could prove you were flip flopping in and out of contract/employment so I'm imagine they would use it if it suited them. It does sound like they've got more than enough to nail you without it though.

It's all in the details as well, of which there are none. It could be you've moved around enough for it not to be an issue. We just don't know and I'd say doesn't really matter a year down the line.

All that said I am just guessing. It's never happened and if you are a year down the line it is unlikely to do so. HMRC will have more than enough to do with the outside inside still at the same company contractors come April so I'd just get on with it and stop worrying.

Thanks for the reply. I guess from a TAAR perspective, there is no issues doing this given I'm going through an Irish umbrella? Think you already answered this on another thread today but good to be sure. I obviously don't want it to impact on thr ER distribution I received last year.

[DaaaaaaaaaaN]

Can anyone recommend a good tax advisor service? Would like to get professional advice before signing anything.

[RajaStyle]

Try https://accountantonline.ie/

They cover both UK & Ireland so can answer questions on both sides