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Emigrating half way through tax year

  • 11-03-2011 7:02pm
    #1
    steve9859
    Closed Accounts Posts: 1,554 ✭✭✭


    I am going to seek the advice of an accountant when it comes to tax returns time, but I have a question which may have a straightforward answer. Will keep it theoretical rather than going through my specific circumstances.

    I earn €30k in 6 months from Jan 2011 to Jun 2011 in Ireland.
    I then move to the UK, where I earn an annual salary of €eq60k (therefore earning €eq30k in the 6 months from July to Dec 2011)
    Irish earnings have not been taxed at source.
    UK earnings taxed at source


    So my total earnings for 2011 are €60k. When I come to do my Irish tax return would I only declare the €30k earned in ireland? If I did that I would end up paying less tax as I would the benefit of the lower tax band in both countries. At the same time I dont need to end up paying double!!!

    Extra complication is that UK tax year starts in April whilst the Irish is based on the calendar year.

    The answer I am sure is complex (hence the need to hire an accountant), but I am posting this on the offchance that there is a simple formula in respect of mid-year emigration.

    (and if there is already a thread on this, I apologise. I looked, but couldnt find one)

    Thanks
    Steve


Comments

  • #2
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    You probably don't need an accountant.

    This is from www.Revenue.ie

    What is split year and who does it apply to ?

    Person Emigrating: (resident year of departure; non-resident following year.)
    Continue to be regarded as resident up to the date of departure and are liable to pay income tax on all income arising up to that date. Generally, full tax credits are allowable on a cumulative basis.

    http://www.revenue.ie/en/tax/it/residence.html

    They won't want to know about your UK earnings.

    The UK has virtually similar rules for arrivals - they will tax you from the date of arrival, and ignore your Irish earnings.

    So, yes - you will get the benefit of all the credits and lower rate band against only part of a year's income here; then you'll get the same benefit there. The different tax years won't even come into it.

    It only gets difficult if you plan to be back in Ireland during the year after departure. Then you might well need some help.


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