UK employer but working & resident in Eire

CtrlAltDelete

Hi,

I am new to the site so pardon me if this topic is already covered elsewhere.

I am due to start work for a UK employer and will be paid in Sterling. However, I will be based here in Ireland full time. How would my taxation work? would I pay UK tax or Irish tax? I believe I would pay Irish tax?

If for example it was possible to choose where I pay my taxes if I had a UK bank account and received my salary into it would this be more employer friendly?

Any information on this would be greatly appreciated.

CharlieR

I am in the same situation, pay my tax etc in the UK and have nothing to do with the irish tax system as I pay for my own travel and have both my own home in the Uk and lodgings in london.

When you finish in the UK you can transfer all your years work back to Ireland as my wife did to count towards her irish credits.

It would also depend if you or your company are paying for your travel to the UK and frequency of travel.

Get some advice from an accountant.

Shane732

If the duties of your employment are going to be carried out 100% in Ireland then the income attributable to your employment will be taxable in Ireland under the PAYE system.

If your employer is not registered for PAYE in Ireland then they will have to do so and remit PAYE/PRSI to the Revenue Commissioners on a timely basis.

In relation to the UK position. There may be a charge to UK PAYE if your contract of employment is located in the UK. However, it is my understanding that you should be able to obtain a Section 690 determination which would reduce the UK tax exposure to the income attributable to the duties of employment carried out in the UK - your in case this would be zero.

Shane732

CharlieR wrote: »

I am in the same situation, pay my tax etc in the UK and have nothing to do with the irish tax system as I pay for my own travel and have both my own home in the Uk and lodgings in london.

When you finish in the UK you can transfer all your years work back to Ireland as my wife did to count towards her irish credits.

It would also depend if you or your company are paying for your travel to the UK and frequency of travel.

Get some advice from an accountant.

This is misinformed information and why we thread to lock these type of threads.

CharlieR

Shane732 wrote: »

CharlieR wrote: »

I am in the same situation, pay my tax etc in the UK and have nothing to do with the irish tax system as I pay for my own travel and have both my own home in the Uk and lodgings in london.

When you finish in the UK you can transfer all your years work back to Ireland as my wife did to count towards her irish credits.

It would also depend if you or your company are paying for your travel to the UK and frequency of travel.

Get some advice from an accountant.

This is misinformed information and why we thread to lock these type of threads.

Can you advise why this is misinformed information as he is employed in the Uk and is to be paid in sterling, nothing to do with the irish system and believes he would be pay irish tax. He would not based upon the tax treaty regulations on double tax treaty that exist between the UK and Ireland that aim to prevent this happening

I live in cork and have been working in the uk for the last 3 years. My financial advisor has advised as I Still own my own home in the uk and have my own lodgings also that I need only apply uk tax implications as said.

Additionally when my wife started work in Ireland after a few years working in England that she could and has transferred her employment stamps for pension to count towards her Irish pension even though it is 25 years away.

Additionally getting advice from a professional is not misinformed information as they can provide correct advice based on each individual circumstance.

I would be grateful if you can advise what is misinformation, as this is our personal circumstances that are advised by an Independant tax advisor in both Ireland and the uk and I also advised seeking professional advice.

I look forward to your response.

Itchianus

CharlieR wrote: »

Can you advise why this is misinformed information...

Pretty simple really! Instead of getting saucy, you should have re-read the OP, but I'll make it easy for you, the following 3 statements illustrate the problem:

CtrlAltDelete wrote: »

I am due to start work for a UK employer and will be paid in Sterling. However, I will be based here in Ireland full time.

CharlieR wrote: »

I am in the same situation... ...I live in cork and have been working in the uk for the last 3 years.

What you've said about how your taxes are paid may well be the correct treatment, for someone in your situation. However the two emboldened sections show exactly how your advice was misinformation - because your situation and the OP's are entirely different.

It is unclear whether you are tax resident in Ireland or not, as your time is clearly split between here and England, and you do your work in the UK. (Seeing as you've taken professional advice one would hope they've gotten it right.)

Just in case the penny hasn't dropped; the OP has clearly stated that they won't be working in England AT ALL, in other words an entirely different situation to yours. If you neither live nor work in England, basic common sense (as well as the tax codes of both countries) would suggest you can't be liable to tax there. (Otherwise every joe soap in Ireland would be employed by a company registered in Abu Dhabi etc... where there is no personal income tax...!!)

CharlieR wrote: »

Additionally getting advice from a professional is not misinformed information as they can provide correct advice based on each individual circumstance.

This is about the only thing you got right! Although as your post demonstrated, the best of professional advice / information can be quickly turned into something dangerously misleading in the hands of someone who doesn't understand the subject matter. It's like the professional advice equivalent of chinese whispers..!

Shane732

CharlieR wrote: »

Can you advise why this is misinformed information as he is employed in the Uk and is to be paid in sterling, nothing to do with the irish system and believes he would be pay irish tax. He would not based upon the tax treaty regulations on double tax treaty that exist between the UK and Ireland that aim to prevent this happening

I live in cork and have been working in the uk for the last 3 years. My financial advisor has advised as I Still own my own home in the uk and have my own lodgings also that I need only apply uk tax implications as said.

Additionally when my wife started work in Ireland after a few years working in England that she could and has transferred her employment stamps for pension to count towards her Irish pension even though it is 25 years away.

Additionally getting advice from a professional is not misinformed information as they can provide correct advice based on each individual circumstance.

I would be grateful if you can advise what is misinformation, as this is our personal circumstances that are advised by an Independant tax advisor in both Ireland and the uk and I also advised seeking professional advice.

I look forward to your response.

Out of interest, how many days do you spend in Ireland per week/month?

Without being offensive you have no idea what you're talking about.

Someone has told you something and you feel you now have the knowledge to (mis)inform others.

This is exactly why we close these threads.

Itchianus has very kindly pointed out your general mistakes errors.

CharlieR

Shane732 wrote: »

Out of interest, how many days do you spend in Ireland per week/month?

For the last year 300+but I am still a tax resident in the UK.

Without being offensive you have no idea what you're talking about.

I did not say I did, thats why I advised to seek professional advice

Someone has told you something and you feel you now have the knowledge to (mis)inform others.

I explained a situation and advised to seek professional advice so am unsure why professional advice is mis information

This is exactly why we close these threads.

So why are they allowed in the first place?

Itchianus has very kindly pointed out your general mistakes errors.

He did and thanks for that and yes I did miss read it.

However the UK and Ireland do have a treaty to avoid the situation of a person being double taxed when they fall into this situation and they should seek professional advice in this situation as it can be very complicated.

I did not think I offered any advice other than seeking professional advice.

Sorry for the inconvenience.

Shane732

CharlieR wrote: »

He did and thanks for that and yes I did miss read it.

However the UK and Ireland do have a treaty to avoid the situation of a person being double taxed when they fall into this situation and they should seek professional advice in this situation as it can be very complicated.

I did not think I offered any advice other than seeking professional advice.

Sorry for the inconvenience.

I'm not arguing that your tax resident in UK, although if you spend 300 + days on a yearly basis in Ireland I would hazard a guess that you may well not be tax resident in the UK. Of course there is the 90 day average test and the vagueness in relation to the average test. My understanding is that this is due to be sorted out in next years budget.

Regardless, of whether you are resident in the UK have you considered whether you are tax resident in Ireland. If you spent 300 + plus in Ireland last year then you are tax resident in Ireland.

The DTA does provide relief for double taxation - this doesn't mean that you won't necessarily pay tax in the in both countries.

The application of the legislation in relation to mobile employees is a complete and utter mess in Ireland.

gavkm27

I work offshore in North Sea and pay UK tax although live in Ireland,i can't be in Ireland for more than 140 days a year or else i will have to pay Irish tax aswell as uk