Working in Ireland

[tigerinopen]

Please also suggest about expenses querying have

[stek]

Thanks for writing, I am told I won't be paid vat as my company would be registered in UK. Why agents vat number on invoice and conversion rate is fluctuating. I am still wondering whether to open a euro or pound business account? Any suggestions ?

You'll have to convert the cash at some point - just take the hit the suits you.

You won't charge or be paid VAT, but need to account for it. HRMC need to recover it from somewhere - it isn't just forgotten about. Have you thought about the fun and games when your next VAT return is nil and HRMC notice (and they will) and ask you to account for that VAT or pay it?

A chat with your accountant seems to be in order.

[stek]

Please also suggest about expenses querying have

You can claim the Benchmark figures published by HMRC which are generous for Dublin (not not for Ireland), but still come out of your pocket.

Costs are high, a room is a house/flat is 800 Euro, food is dear, drink is dear and unless you live in the City Centre, Dublin can be quite boring. Sandyford was for me!

I found my war chest built up much more slowly when I worked there, it's not a cheap place, you really need to be on 600 Euro a day and not many pay that there.

[pjclarke]

HMRC therefore agreed in January 2008 that employers may use benchmark rates published on the HMRC website when paying accommodation and subsistence expenses to employees whose duties require them to travel abroad, without the need for the employees to produce expenses receipts. HMRC will endeavour to update the published rates in October/November each year.

Source Employment income: scale rate expenses payments: accommodation and subsistence payments to employees travelling outside the UK

Rates are here: http://www.hmrc.gov.uk/employers/wwsr-bench-2013.pdf

Dublin is €99 per day (24hr) for subsistence, €148 room rate, so I am charging €247 a day. I come back to the UK for weekends so it makes sense to get a managed apartment and StayCity did me a deal at €60/night for a one-bed.

But ditto what people say about expensive, €4 for a sandwich or wrap, beer normally around €4.80, rising to €6 plus in the human zoo that is Temple Bar.

[BlasterBates]

If you work in Ireland and tax yourself in the UK you run a risk. IF they find out about you they will more than likely chase you, just experience of tax authorities anywhere.

The risk free way is to inform the authorties and make your case as to why you're exempt. If they find out you've been hiding from them they'll come down on your like a ton of bricks, that's how tax authorities do things.

Many contractors have come a cropper on overseas contracts, but as long as you're aware of the risks.

In my view it is worth notifying the tax authorities and paying tax, simply because for a short tern contract 6 months or less a) you generally won't be subject to social security b) you will only be taxed on Irish earnings and the marginal tax rate will probably low because you're only there a few months.

Getting a nasty letter two years after you left would not be nice, as seems to happen to quite a few contractors in various countries,

In my experience it is not a big deal making sure your tax affairs are in order and can save you fortune if you get caught.

Just bear in mind that the trend is to clamp down, so what might have been a low risk perhaps a few years ago won't stay that way. A lot of UK contractors now work in Ireland so they probably are on the radar.

[tigerinopen]

If you work in Ireland and tax yourself in the UK you run a risk. IF they find out about you they will more than likely chase you, just experience of tax authorities anywhere.

The risk free way is to inform the authorties and make your case as to why you're exempt. If they find out you've been hiding from them they'll come down on your like a ton of bricks, that's how tax authorities do things.

Many contractors have come a cropper on overseas contracts, but as long as you're aware of the risks.

In my view it is worth notifying the tax authorities and paying tax, simply because for a short tern contract 6 months or less a) you generally won't be subject to social security b) you will only be taxed on Irish earnings and the marginal tax rate will probably low because you're only there a few months.

Getting a nasty letter two years after you left would not be nice, as seems to happen to quite a few contractors in various countries,

In my experience it is not a big deal making sure your tax affairs are in order and can save you fortune if you get caught.

Just bear in mind that the trend is to clamp down, so what might have been a low risk perhaps a few years ago won't stay that way. A lot of UK contractors now work in Ireland so they probably are on the radar.

Thanks for responding..Advice so far (or impression ) I received on this forum is that I am not liable for taxes in Ireland if I contract through my UK limited company and receive money directly here...

People are talking about expenses, those expenses they must be putting into their own limited company and profits would be taxed...When, where and how much tax they are paying in Ireland?

Please can more light be thrown upon it?

[Old Greg]

Thanks for responding..Advice so far (or impression ) I received on this forum is that I am not liable for taxes in Ireland if I contract through my UK limited company and receive money directly here...

People are talking about expenses, those expenses they must be putting into their own limited company and profits would be taxed...When, where and how much tax they are paying in Ireland?

Please can more light be thrown upon it?

Before you dismiss liability in Ireland, look at

http://www.osk.ie/assets/files/Contr...rch%202012.pdf

[BlasterBates]

Thanks for responding..Advice so far (or impression ) I received on this forum is that I am not liable for taxes in Ireland if I contract through my UK limited company and receive money directly here...

People are talking about expenses, those expenses they must be putting into their own limited company and profits would be taxed...When, where and how much tax they are paying in Ireland?

Please can more light be thrown upon it?

Check out the link from Old Greg.

You are taxable on all income sourced in Ireland even if you are not tax resident. So you need to be careful.

In my view it would be very unlikely that the Irish tax authorities would view an Irish contract to be part of your UK income even if the agency were UK based. This is equivalent to routing a UK contract via the Isle of Man.

If you still want to do this I would advise actually claiming exemption from the Irish authorties, i.e. declare what you are doing and argue your case. Staying below the radar will probably be viewed by the Irish tax authorities as tax evasion.

[ShandyDrinker]

I've written a few posts about contracting in Ireland; use the search facility to find them.

In short, I wouldn't go down the umbrella route unless your rate is stellar as you are unable to claim expenses for hotels after a period of time, for example and the retention is quite frankly horrendous - this can be particularly restrictive if you want to fly back to the UK every weekend too as you wouldn't be able to claim flights as expenses.

You can go via your UK Ltd but make sure you register with the Irish tax authorities if you do and gain an exemption. Others have posted links on here to osk.ie, I would use them.

With regard to the IR35 question, as far as I am aware it could actually apply so make sure to follow the same due diligence process you would for any UK based contract.