tax question on UK work

FLCP

Hi guys,
Long time lurker, first time poster - be gentle!
I am doing some contract work that is paid in Sterling and I want to put the money into an existing UK bank account in my name.
I am happy enough with the tax issues here, but would the UK tax man come looking for me too? Should I declare in advance that the earnings are made (and taxed) in Ireland?
Thanks.
FLCP

Mr. Incognito

well I'm no expert on UK tax but in Ireland earnings that are earned before you come into the county are known as capital and any capital you bring with you is not taxable. It is only money that is earned whilst you are in Ireland.

In the case of mixed fund accounts- ie capital and current there is legislation that the tax can come out of the capital in certain situations.

I would give the UK Revenue a ring to see.

It will be subject to UK DIRT, but if you are non resident in the UK you can apply to not have this DIRT deducted via appropriate forms.

Like I said, I'm no expert on UK legislation so you'd be best to get someone that knows the UK legislation.

TaxingTimes

There are several questions to be clarified before answering your question

Are you self-employed or trading through a Limited company?
What type of work are you doing?
Where are you carrying out the work physically?

FLCP

Thanks for the answers guys - to answer the various questions:
I am self employed (sole trader), the work is business services (in the line of consulting although not quite) and I am living in, and all the work is being done from, Ireland. As far as i can see, the tax should be payable here in Ireland as this is where i am based - and once the income is declared and taxed here, the UK HMRC should have no interest in it - regardless of where the actual cheque is deposited.
Thanks for the help,
FLCP

Mr. Incognito

whoa- hang on there skippy

yes they would

If the work is done here- then it is liable to Irish tax. You seem to be up on this. But if you deposit income that is earned on a continuous basis into the UK it will most likely be deemed to be remitted into the UK and fall to UK tax too. There are relieving provisions under the Double taxation agreement but I'd defo get in touch with a UK tax consultant to minimise exposure to UK tax.

FLCP

Mr. Incognito wrote: »

get in touch with a UK tax consultant to minimise exposure to UK tax.

Sounds expensive :-)

I'm in the process of trying to source professional advice but thought i'd try and get my head around it first. Sounds like it's best left to the professionals.

Thanks guys,

TaxingTimes

HMRC will not need to know.
You are Irish resident and earn the income in Ireland and pay Irish tax on the income.
You are non-UK resident and therefore not liable to UK tax on income earned in Ireland.

If you want further information contact me as I advise on UK tax issues

FLCP

Thanks,my problem is that I will be banking the money in England, and (hopefully) it will be a regular cheque of salary level money from the same firm every month- just thought it would raise alarm bells. I have been a Uk non-resident for over 5 years outside the eu, never got questioned putting money into that account but it was always transfered from other accounts in my name,my main concern is that this new money is going to stand out like a sore thumb as being wages.
Thanks

TaxingTimes

This should not be a real problem for you.

You should make sure that the account is registered as a non-resident account and get any interest paid to you in respect of the account gross rather than after deduction of UK withholding tax.

Mr. Incognito

HMRC will not need to know.

This is straying dangerously close to tax avoidance advice. Please read the charter. I'll just issue a warning on this occasion. Be very very careful.

You are Irish resident and earn the income in Ireland and pay Irish tax on the income.
You are non-UK resident and therefore not liable to UK tax on income earned in Ireland.

If you want further information contact me as I advise on UK tax issues

It is not that simple- it seems like the OP has recently returned from the UK and as such may be ordinarily resident. It would seem on the face of it that Ireland will have taxing rights but there are the OP's domicile and dual residence factors to come into play. No one can be 100% sure and any language suggesting same opens Boards up to legal consequences. Once again read the charter. If you want to stick your neck out in a PM by all means do so but it is your backside that will take the flack if an anonymous individual decides to rely on this advice and sue you. I'm a solicitor- I've seen it happen. Don't be looking for boards to protect you if this happens.

I am unfamiliar with all UK tax legislation as I am an Irish AITI but the below would make me uncomfortable.

http://www.hmrc.gov.uk/briefs/income-tax/brief1709.htm

Closure of a number of loopholes and flaws in the remittance basis that allowed people to bring untaxed income or gains into the UK tax-free.

Once again seek advice from a competent UK tax professional as to your UK liabilities, if any.