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Ltd company trading in the uk tax implications?

  • 09-06-2012 5:41pm
    #1
    4400kevin
    Registered Users, Registered Users 2 Posts: 66 ✭✭


    I am the director of a small construction based ltd company. We have recently started a contract in London , do I have 20% tax deducted via a utr number or no tax deducted and pay my corperation tax in Ireland the job will take about 4 months.


Comments

  • #2
    CharlieR
    Registered Users, Registered Users 2 Posts: 104 ✭✭CharlieR


    Depends on what the corporation tax is in ireland.

    If it is UK ltd company it is 20% if i remember correctly but you can only pay yourself c £30k in dividends per annum.

    Your tax would be reduced as you would pay yourself minimum wage so limit your National Insurance, employee and employer and also pay basic rate tax.

    You would need an accountant as in construction as you are site based there are also a number of other things you can claim for and they would be able to advise you better.

    Congrats

    Charlie


  • #3
    Shane732
    Registered Users, Registered Users 2 Posts: 4,998 ✭✭✭Shane732


    Are you talking about the Corporation Tax implications?

    Assuming the limited company you are talking about is Irish registered and resident then it should only be taxable in the UK if the company has a permanent establishment in the UK. Permanent Establishment is defined in the Ireland/UK DTA.

    You may also have CIS issues and/or PAYE issues to consider here.

    You need to get professional advice on the matter.


  • #4
    clevtrev
    Registered Users, Registered Users 2 Posts: 633 ✭✭✭clevtrev


    An Irish construction company doesnt strictly need to have a permanent place of business in the UK to have a potential liability for UK corporation tax. the rules are not black and white but if a construction contract runs for more than 6 months on site in the UK then you are deemed to have a place of business in the uk and are potentially liable to tax on any profits. Details are contained in the dta as referenced by Shane

    you also need to register with the CIS scheme through hmrc. Once you are registered you provide your details to the main contractor who must notify all payments to hmrc and they will communicate the level of deduction similar to the way it works under the rct scheme here in Ireland.

    if you are not registered then they are obliged to deduct 30% from your payment and you will then need to reclaim it from hmrc at the end of the tax year.


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