Reply to: Contracting in Ireland - Advice needed

[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.

[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.

[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

[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.

[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.

[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.

[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.

[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]

Surely if you are located in Ireland for a contract (and can prove it) and are the sole director of your Ltd, then all revenue generated in Ireland would only be subject to Irish Corp. tax?

Income tax for you as a UK resident is another matter, of course.

It doesn't work like that. Your revenue is not in Ireland it's in the UK. For you to move the profit to Ireland your Irish company has to charge your UK company for services provided. However if it's a bogus service that won't wash. In other words you not only have to be located in Ireland you have to be doing something there, verifiably.

You see these multinationals actually do employee hundreds of people in their offshore company and the company actually provides a real service.

From what I see these companies operate legally.

[borderreiver]

1. Uk agencies will refuse to deal with you
2. HMRC will come after your company & you as a director as you are a UK resident

Unlike large companies you don't have staff in Eire to argue that your company has a presence there.

Surely if you are located in Ireland for a contract (and can prove it) and are the sole director of your Ltd, then all revenue generated in Ireland would only be subject to Irish Corp. tax?

Income tax for you as a UK resident is another matter, of course.

[SueEllen]

Is it possible to setup company in ireland, while you are there, to utilise the 12.5% corporation tax.
Then when you come back to the UK, you can keep using this company for as long as you like?

1. Uk agencies will refuse to deal with you
2. HMRC will come after your company & you as a director as you are a UK resident

Unlike large companies you don't have staff in Eire to argue that your company has a presence there.

[escapeUK]

Is it possible to setup company in ireland, while you are there, to utilise the 12.5% corporation tax.
Then when you come back to the UK, you can keep using this company for as long as you like?

This is something I have wondered. If big companies can set up head offices in countries with low tax regimes, why cant we?

[lithium147]

Is it possible to setup company in ireland, while you are there, to utilise the 12.5% corporation tax.
Then when you come back to the UK, you can keep using this company for as long as you like?

[SueEllen]

From what I could gather, the associate agreement and Non Disclosure Agreement is a long document that covers the responsibilities and working practices of being an Associate with them, but I am a bit hesitant to sign it before I get some advice from experienced people on this forum. So, what should I really look out for before I potentially get myself in deep water?

Read the document and if you find things you don't understand get a solicitor who deals with commericial contracts to look at it.

Yes you have to pay but then it will ensure you won't find yourself stitched up later if things go wrong i.e. they try and find an excuse not to pay.

In regards to the tax advice you have been given useful info by the first 2 posters on this thread. You can also do a search for working in Ireland ignoring any advice that is more than 18 months old.

[BlasterBates]

If you went down your own company UK route, then you have to register with the Eire tax people, but can get an exemption on paying Eire taxes and social security for up to 183 days AFAIR. Over than that you need to get into the local system.

This is an excellent piece of advice perhaps this should be repeated for all countries, ie.

register with the Eire tax people, but can get an exemption

i.e. don't do it in a clandestine fashion as many contractors hoping you'll get away with it, register and actively seek tax relief.

I declare my worldwide earnings on my Swiss tax form even though I'm not liable to pay tax on it, and then actively seek relief. This means I don't have to worry about a Swiss SWAT team barging into my flat to confiscate my bank statements.