Contracting in Ireland - Advice needed

[borderreiver]

How is the revenue in the UK if I am doing (say) a 6-month contract in Dublin? That doesn't make sense. I was under the impression that "corporate residence" depends on where the revenue is generated and where the "command and control" of the company is, and if the sole director of a UK limited is sitting in Dublin hacking code, then surely that revenue is most definitely generated in Ireland and so is subject to Irish corp. tax only.

If that is not the case, then how come every time someone mentions doing a gig in Germany, people here tell them they have to use a German umbrella or suchlike because the revenues generated there will be subject to German taxation?

Maybe I'm being a bit thick today ... too much SQL ... but that doesn't seem consistent to me.

As I say, I'm not talking about personal taxation, just corporate taxation.

[BlasterBates]

My mistake I got two threads mixed up. Someone on another thread was discussing using an Irish company to work in the UK.

You are right.

[Old Greg]

Resurrecting a thread.

Am considering a contract in Ireland, but it would be part of a permanent relocation to Ireland. I'm trying to work out how the contracting industry works over there.

I don't get the impression that the UK model of Ltd + low salary + corp tax + divis is a goer over there. Does anyone have any experience or expertise on the best structure to take? Working via the UK Ltd doesn't seem to make sense if I am relocating there for good, rather than visiting four nights per week.

Brolly returns look pretty lousy and on the rate I'm discussing, the move wouldn't make sense if the contract was via a brolly.

[masonryan]

Sorry hope you don't mind me using this thread to seek similar advice.

Fixed term contracts in Ireland for a UK resident.

I suspect for these types of contracts:
- you get taxed at source at Eire personal tax rates and
- don't get any expenses deducted?

Not sure if this means you get any extra bill from HMRC in some sly way.

[Andy Hallett]

Sorry hope you don't mind me using this thread to seek similar advice.

Fixed term contracts in Ireland for a UK resident.

I suspect for these types of contracts:
- you get taxed at source at Eire personal tax rates and
- don't get any expenses deducted?

Not sure if this means you get any extra bill from HMRC in some sly way.

Correct, and you shouldn't get a further tax bill from HMRC under the double taxation treaty.

[Sue B]

Important to remember to test your tax residency status. You may be taxable in Ireland on Irish income but remain taxable in the UK on your global income.

if you remain tax resident in the UK for then you will have to file UK self assessment, declare your Irish source income, calculate the UK taxation due on the same, then offset the tax paid in Ireland under double taxation rules.

If you would have paid more tax in the UK, i.e you have other sources of income, earn over £100,000 and/or are an additional rate taxpayer, you may have a balancing payment to make.

Finally don't forget National insurance too. Irish Social Security will be due if you do not have a valid
A1 certificate. HTH

[masonryan]

Important to remember to test your tax residency status. You may be taxable in Ireland on Irish income but remain taxable in the UK on your global income.

if you remain tax resident in the UK for then you will have to file UK self assessment, declare your Irish source income, calculate the UK taxation due on the same, then offset the tax paid in Ireland under double taxation rules.

If you would have paid more tax in the UK, i.e you have other sources of income, earn over £100,000 and/or are an additional rate taxpayer, you may have a balancing payment to make.

Finally don't forget National insurance too. Irish Social Security will be due if you do not have a valid
A1 certificate. HTH

Thanks. Well it seems personal taxes in Ireland are higher at the moment.

[NickNick]

Thanks. Well it seems personal taxes in Ireland are higher at the moment.

And not just that. I did a six monther in Ireland years ago and managed to pile on 3 stone in that time.