Contracting Abroad - Ireland

[icemancomeths]

Hi Guys,

If I contract for 3 months in Ireland how will this effect me? Current I work in the UK and pay my accountant to sort out my finances. Do I need one in Ireland? Do I pay tax the same way?

Please can somebody with experience help.

I have read this:
IT Contracting in Ireland - Money and Tax :: Contractor UK

But its not that specific.

Big Thanks!

[SueEllen]

As it's Friday and most people have gone home you are best of putting the word "Ireland" into the search box on the top right.

Ignore any threads that are in the forum "General" and are over 2 years old.

Don't expect really useful replies on this thread until Monday.

[ShandyDrinker]

Hi Guys,

If I contract for 3 months in Ireland how will this effect me? Current I work in the UK and pay my accountant to sort out my finances. Do I need one in Ireland? Do I pay tax the same way?

Please can somebody with experience help.

Big Thanks!

I'm currently on a second stint in Ireland after being there for 6 months in 2011. Although I don't profess to be an expert I would suggest you have a look at the info in the following thread:

http://forums.contractoruk.com/accou...t-ireland.html

From experience it would appear most UK based contractors working in Ireland fall into 2 distinct camps; those who ignore the tax situation and hope it will never catch up with them (and I've worked with a few people who take that view) or those that go down the dispensation (from obligation of operating Irish PAYE) route. I don't believe you have to employ the services of an Irish based accountant to do this but it would probably make things easier although be prepared to pay a reasonable amount for the pleasure.

I have previously been advised by a UK based accountant that you could probably "get away" with working in Ireland for 6 months without having to worry.

In summary as I found, take advice from your UK accountant or an Irish one as it could save you a fortune later on.

PM me if you want any additional info...

[icemancomeths]

Cheers guys, makes more sense.

My Accountant basically said it will come under double taxation and I don't need to do anything really.

I will be paid by Euro's into an English Account I think?

Is this a wise thing to do?

Regards

[SueEllen]

Cheers guys, makes more sense.

My Accountant basically said it will come under double taxation and I don't need to do anything really.

I will be paid by Euro's into an English Account I think?

Is this a wise thing to do?

Regards

You will definitely lose some of your rate doing that.

I suggest you google and search for viable options for example having a Euro business account.

Regardless of what you decide to do you will suffer the issue of fluctuating currency rates.

[ShandyDrinker]

Cheers guys, makes more sense.

My Accountant basically said it will come under double taxation and I don't need to do anything really.

I will be paid by Euro's into an English Account I think?

Is this a wise thing to do?

Regards

I'm no accountant but to say it will come under double taxation is perhaps missing the point (or maybe I am)? My understanding is that you still pay whatever taxes should be due in Ireland and then this will reduce your burden in the UK via the double taxation agreement. Perhaps anyone more knowledgable frequenting these forums could reply?

You will definitely lose some of your rate doing that.

I suggest you google and search for viable options for example having a Euro business account.

Regardless of what you decide to do you will suffer the issue of fluctuating currency rates.

For me this is the biggest killer. Although the company has a Euro bank account every payment made into that account has an associated charge. To move the money from EUR->GBP a charge is built into the exchange rate too. That combined with the fact as SueEllen says the fluctuating currency rates can be a nightmare. When the current contract was agreed the exchange rate was around the 1.20 EUR/GBP mark, now it is at around 1.255 EUR/GBP. Although another can of worms entirely... if Greece (or another country) were to exit the Euro later this year, expect to take a massive pay cut because of the currency fluctuation.

Out of interest, do any other contractors on here do anything to guard against exchange rate fluctuations such as currency hedging?

[borderreiver]

Out of interest, do any other contractors on here do anything to guard against exchange rate fluctuations such as currency hedging?

I just factor it in to what I quote my EU client for, but I'm in an unusual position as I work on fixed-price projects (yikes!). I don't think you can do much else TBH.

On the positive side, taking this kind of business risk is a big plus WRT IR35, no?

[ShandyDrinker]

I just factor it in to what I quote my EU client for, but I'm in an unusual position as I work on fixed-price projects (yikes!). I don't think you can do much else TBH.

On the positive side, taking this kind of business risk is a big plus WRT IR35, no?

To be honest I'd love to work on fixed-price projects as I reckon there'd be much greater scope to make more profit. I have had contract work as fixed price contracts they have been the exception rather than the rule. As you say, a big plus point for IR35 if you can get it!

[BlasterBates]

Cheers guys, makes more sense.

My Accountant basically said it will come under double taxation and I don't need to do anything really.

I will be paid by Euro's into an English Account I think?

Is this a wise thing to do?

Regards

Just one point, your accountant will be familiar with UK but not so familiar with Irish tax laws. From what the other poster says though, you'll probably "get away with it". I'm presuming he means just tax it in the UK as UK income.

Just be aware that there are countries that will come down on you like a ton of bricks if you work 3 months but only tax it in the UK.

If this is fixed price and you're working most of the time in the UK, this would be taxed in the UK.

[ShandyDrinker]

For future reference for anyone wanting to undertake an assignment in Ireland I think the information contained in Chapter 4 of the Statement of Practice SP-IT/3/07 from the Irish Revenue is what you really need to concentrate on. It contains information relating to operating (or dispensation from) a PAYE scheme in Ireland and the rules around the 183 day rule (or 280 day count back rule).

The document is available from:

http://www.revenue.ie/en/practitione...sp_it_3_07.pdf