Self employed uk contract living in the state

ShowMeTheCash

So I plan to go contracting and will be working in Belfast.
I live in Donegal and will need to set myself up as a limited company.

Just looking for advice to what is the best way to do this?
Do I set my company up in the uk as this is where I will be working, or do I set it up in the state?

I have been reading revenue and customs around dual taxation and the double taxation agreement between the uk and Ireland.

Essentially it states it looks at what tax I would pay in the state and it deducts that it what I currently pay in the uk as long as I pay the same or more in the uk I am not liable for any taxation in the state.

But I am not sure what happens if say I can write certain tax off in the uk business expenditure will it automatically be seen the same way in the state?
And vide versa, if I set myself up in the state can the same thing happen with the hmrc in the uk?

Any advice would be appreciated.

Thanks

helimachoptor

Get an accountant..

ShowMeTheCash

Where do I get the accountant?
UK or ROI?

Apart from stating the obvious, I will talk to an accountant when the contract comes threw in the UK.
I wanted to see if anyone knows the deal around this, do I need to submit tax retruns to both the UK and state will the account sort it all out for me, what % of taxation would I be paying etc etc...

helimachoptor

ShowMeTheCash wrote: »

Where do I get the accountant?
UK or ROI?

Apart from stating the obvious, I will talk to an accountant when the contract comes threw in the UK.
I wanted to see if anyone knows the deal around this, do I need to submit tax retruns to both the UK and state will the account sort it all out for me, what % of taxation would I be paying etc etc...

You will need one that is familiar with both states tax regulations (sorry dont have a recommendation) but wouldnt imagine you should have too much difficulty getting one in the North

Mrs OBumble

ShowMeTheCash wrote: »

Where do I get the accountant?
UK or ROI?.

My initial guess is in the country where you are living, because that is where you have a personal tax obligation.

But if you are running a business, not just working as an employee, you also need appropriate business advice and that would need to be UK based (VAT, professional indemnity insurance, etc)) So that would be an argument to use someone in the UK, who also has knowledge of the ROI tax system.

ShowMeTheCash

Mrs OBumble wrote: »

My initial guess is in the country where you are living, because that is where you have a personal tax obligation.

But if you are running a business, not just working as an employee, you also need appropriate business advice and that would need to be UK based (VAT, professional indemnity insurance, etc)) So that would be an argument to use someone in the UK, who also has knowledge of the ROI tax system.

If you work in the North you pay tax in the north.
Yes your obligation is with the country you live and people are supposed to submit a self assassement form but really all that happens is you get a letter stating you do not need to pay anymore tax due to a double taxation agreement between UK and Ireland.

The revenue probably do not chase it up as it probably costs them money to process it and get nothing in return.

There is a good website called

http://www.borderpeople.info

However it does not give a lot of info if self employed in the UK and living in the state.

I will look for an accountant in Derry being i am from Donegal and see what they say about it.