Reply to: Contracting - a cross border affair

[eek]

Eire just means Ireland.

Republic of Ireland is the correct term if you need to distinguish between Ireland (the state) and Ireland (the island).

Questions updated to correct my shortcut.

[Old Greg]

It would be good to merge this thread with https://www.contractoruk.com/forums/...t-ireland.html

[Old Greg]

Are you working in Eire or Northern Ireland?

Are you renting a property in Eire?

Eire just means Ireland.

Republic of Ireland is the correct term if you need to distinguish between Ireland (the state) and Ireland (the island).

[eek]

But would HMRC treat my income any differently if it were to be a Ltd company rather than an umbrella?

Are you working in the Republic or Northern Ireland?

Are you renting a property in the Republic?

[nedk87]

You have personally received the money as an employee in Ireland.

So you fill in your income on your self assessment and HMRC compare that to the income tax you should be paying - if the amount HMRC want is more they will ask for money otherwise that's the end of it.

But would HMRC treat my income any differently if it were to be a Ltd company rather than an umbrella?

[eek]

As I understand it, I’ll have to submit an end of year UK tax return declaring my Irish income regardless.

Given that the Irish ‘Director Umbrella‘ option doesn’t have a direct UK equivalent, how would income from that source be seen/taxed as during my end of year UK tax return? Would HMRC try to tax me as a Ltd company or an uk umbrella?

You have personally received the money as an employee in Ireland.

So you fill in your income on your self assessment and HMRC compare that to the income tax you should be paying - if the amount HMRC want is more they will ask for money otherwise that's the end of it.

[nedk87]

As I understand it, I’ll have to submit an end of year UK tax return declaring my Irish income regardless.

Given that the Irish ‘Director Umbrella‘ option doesn’t have a direct UK equivalent, how would income from that source be seen/taxed as during my end of year UK tax return? Would HMRC try to tax me as a Ltd company or an uk umbrella?

[Old Greg]

Unlikely to see 58%-61% more like 53-54%


Sent from my iPhone using Contractor UK Forum

No, 60% is about right for an Irish Directors Umbrella - as a proprietary director you pay Class S PRSI.

400 pd x 220 days = 88,000 p.a pre tax and 55,000 post tax
600 pd x 220 days = 132.000 p.a. pre tax and 77,000 post tax

If you are married and your spouse doesn't work, that comes up a bit.

[eek]

If you are renting an apartment in Dublin and working in the Republic for tax purposes your main residence will be in the Republic.

[GhostofTarbera]

In a very similar position to the OP, however I'm planning on remaining resident in NI for most of the contract, WFH initially, then maybe part-time commuting to Dublin.

Can anyone advise whether it's best to:
- Work through an Irish based umbrella (Director)
- Work through a UK based umbrella
- Set up a ltd company?

From initial quotes, I've been promised around 58% retention from a UK based umbrella, or 61% from an Irish based director umbrella.

I'm confused more than anything else!

Thanks

Unlikely to see 58%-61% more like 53-54%


Sent from my iPhone using Contractor UK Forum

[courtg9000]

the rental in the republic will be the least of your worries on this one.

[Old Greg]

In a very similar position to the OP, however I'm planning on remaining resident in NI for most of the contract, WFH initially, then maybe part-time commuting to Dublin.

Can anyone advise whether it's best to:
- Work through an Irish based umbrella (Director)
- Work through a UK based umbrella
- Set up a ltd company?

From initial quotes, I've been promised around 58% retention from a UK based umbrella, or 61% from an Irish based director umbrella.

I'm confused more than anything else!

Thanks

Same advice as in the thread you started yesterday.

[nedk87]

In a very similar position to the OP, however I'm planning on remaining resident in NI for most of the contract, WFH initially, then maybe part-time commuting to Dublin.

Can anyone advise whether it's best to:
- Work through an Irish based umbrella (Director)
- Work through a UK based umbrella
- Set up a ltd company?

From initial quotes, I've been promised around 58% retention from a UK based umbrella, or 61% from an Irish based director umbrella.

I'm confused more than anything else!

Thanks

[Ronieb]

On taxation. You will be taxed in Ireland on your contract in Ireland. However as your main residence will still be the UK and you will tax all other income eg Investments, Rental income, Capital Gains Tax, in the UK. You will also have to declare your Irish income in the UK though they take into account tax paid in Ireland. I recommend that you use an Irish accountant. If you have family in Northern Ireland this is proof of your UK residency. If not just ensure you have proof of your visits, telephone bills, record of cash withdrawals and receipts in Northern Ireland are examples of what you can send to the Irish tax office if requested.

That's great insight, thanks for your thoughts on that. I've spoken to an accountant with experience in both contracting and cross-boarder dealings. He informed me that while UK tax would be more advantageous, it would be much more convenient to be set up a limited company in Ireland, as clients prefer to deal with Irish companies. I guess that answers my query!

[BlasterBates]

On taxation. You will be taxed in Ireland on your contract in Ireland. However as your main residence will still be the UK and you will tax all other income eg Investments, Rental income, Capital Gains Tax, in the UK. You will also have to declare your Irish income in the UK though they take into account tax paid in Ireland. I recommend that you use an Irish accountant. If you have family in Northern Ireland this is proof of your UK residency. If not just ensure you have proof of your visits, telephone bills, record of cash withdrawals and receipts in Northern Ireland are examples of what you can send to the Irish tax office if requested.