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Any UK employed and paid Irish resident self assessors out there?

  • 30-08-2010 11:56am
    #1
    Goreygal
    Registered Users, Registered Users 2 Posts: 131 ✭✭


    Hi

    My UK employer allowed me to move back to Ireland last year to work from home here. I was under the impression as part of the move that PWC would be looking after my tax affairs (they did last year and my employer is still withholding "hypotax" from my monthly salary) but have just been told I need to self assess for 2010. :eek:

    I have absolutely no idea where to start!!! Has anyone been through this process? I've gone to the Revenue's ROS site and even trying to register for a RAN has sent my head into a spin as I have no idea what category to choose :(.

    Any help/guidance would be very much appreciated.

    Yours .. confusted


    Goreygal


Comments

  • #2
    SaschaKyiv
    Closed Accounts Posts: 29 ✭SaschaKyiv


    Hi there,

    Your situation could get quite complex, especially if the company aren't providing any tax assistance.

    A few things spring to mind:

    If the duties of your employment are exercised in Ireland a PAYE withholding obligation arises. You will effectively have to pay PAYE & Income Levy on the portion of your income that relates to your Irish duties.

    Did you get an E101 before you moved to retain you in the UK social security system? If not, you will be liable to Irish PRSI and Health Levy.

    Your employer is withholding Hypo Tax:

    A hypothetical tax calculation would have been done before you left the UK. This would have calculated how much UK tax Goreygal would have paid had she remained in the UK and not gone to Ireland. You then switch from 'actual tax' to 'hypo tax'. Your employer would normally cover your foreign (Irish) and domestic (UK) tax liabilities and use the Hypo Tax deducted from you to go towards these liabilities.

    You would effectively be 'tax neutral' as the Hypo tax ensures that you are paying no more and no less tax than you would have paid had you remained in the UK.

    You need to find out-
    Are your employers covering your Irish PAYE liability?
    Are you paying UK NIC or Irish PRSI?
    Do you still have a UK tax filing obligation? Are you still UK tax resident?
    Will there be a case of double taxation?
    What is you employer doing with the Hypo tax they are withholding? Will it go towards your UK (if any) or Irish tax liabilities?

    It can get complicated and I know my explanation has been hurried.

    Ideally, going forward it would be simpler if you were able to switch to a local contract with any Irish entity that your employer might have here.

    If u need more let me know.

    Sascha


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