Working in Dublin but wages paid in Sterling

CabbageThing

Hello

I would like to know if anyone else is in this position - An Irish person working in Dublin for a U.K. company but their wages are paid into a sterling bank account?

I have an interview for I job that I really like the sound of , but when the recruiter said I need a U.K bank account it has stopped me in my tracks. For a start the Banks wont touch me if I look for a mortgage (well they would offer 50%) and where do I stand with PAYE etc?

If anyone else is in this postion , I would appreciate any info on the matter.

Thanks

nilsonmickey

Not exactly but a little the same. I work in Ireland but get paid in Norwegian krona. It's ok for me but it can create problems like loans, revenue commissioners. I pay all my taxes to Norway so it dosent give me any entitlements here.

srsly78

Your UK employer would have to operate Irish PAYE, which would be awkward. This is their problem not yours however. Are you actually an employee, or are you a freelance consultant sending them invoices? If the latter then you would be self-employed and responsible for your own taxes.

Aside from that, just use an FX (foreign exchange) broker to send the sterling home - this one gives best rates: www.midpoint.com

Note that you would be exposed to FX risk, the rate might move against you and suddenly your wage would be worth less in euros.

To the guy above: if you are tax resident in Ireland then your taxes should be paid in Ireland, not Norway :P Maybe you are on secondment or one of the few other exceptions tho.

nilsonmickey

You can also just get an address in North and pay taxes in UK.

srsly78

You do not get to arbitrarily choose which country to pay your taxes in. Well, you kinda do - but it may be illegal and get you in trouble down the road...

kippy

srsly78 wrote: »

You do not get to arbitrarily choose which country to pay your taxes in. Well, you kinda do - but it may be illegal and get you in trouble down the road...

Well unless you are a major multinational with the best of accountants and solicitors at your disposal.....

srsly78

Company taxes and personal taxes are subject to different rules.

kippy

srsly78 wrote: »

Company taxes and personal taxes are subject to different rules.

I'm well aware of that.......

Mr. Loverman

This makes no sense.

The problem is the payroll person is thick/lazy.

From an accounting perspective, it makes no difference to them if the bank transfer is to a UK or Ireland account.

You need to give us some more details.

Are you their only employee in Ireland? As in, they have no office here, you're just here trying to source suppliers or something like that?

nilsonmickey

srsly78 wrote: »

You do not get to arbitrarily choose which country to pay your taxes in. Well, you kinda do - but it may be illegal and get you in trouble down the road...

Actually you do. If you work for a UK company for example most will insist you pay taxes in that country. In this case you'll need to declare yourself as a UK resident (Norway in my case) and pay taxes there accordingly.

srsly78

Irish rules are what matters for people that actually live here: http://www.citizensinformation.ie/en/money_and_tax/tax/moving_country_and_taxation/tax_residence_and_domicile_in_ireland.html

You can declare yourself resident anywhere, but if you are lying there will be trouble!

nilsonmickey

And how is anyone going to find out if you are lying? I pay my taxes. More than here. I just pay them elsewhere.

Mrs OBumble

OP, if you are to be the company's sole employee in Ireland then it might be a lot of bother for them to operate Irish PAYE just for you.

Another option is for you to contract to them through an umbrella company: you're an employee of the umbrella-company (paying class A PRSI, so still welfare eligible if you become unemployed), and the umbrella company invoices the company that you do the work for. You get paid the invoiced total less the UC's fees (which will include the cost of employer PRSI and annual leave).

As a very general rule, the company needs to be invoicing for your time at twice the rate you would be paid if you were an employee, to cover all the costs. And as mentioned you would have the FX rate risk as well.

Might be worth it, though, for a sufficiently good job and rate.

stevenmu

nilsonmickey wrote: »

And how is anyone going to find out if you are lying?

What happens if you change jobs to an Irish employer and have to apply to Revenue for your tax credits? You might have to explain how you have been surviving on 0 income. Or if you end up needing to apply for social welfare. Or if you have need to be means tested for some benefit (kids going to college etc). Do you have any Irish bank accounts that might be generating DIRT? Or what happens if an auditor at the Norwegian company realises that they need to report your income to Revenue here?

I pay my taxes. More than here. I just pay them elsewhere.

If you are resident here, earning an income, and not declaring it, then no, you are not paying your taxes.


FWIW, for both yourself and the OP, Ireland has reciprocal tax agreements with both Norway and the UK (http://www.revenue.ie/en/practitioner/law/tax-treaties.html) that provide relief against double taxation in both states. I don't know how they work in practice, I would suggest contacting the Revenue directly to work out the details.

nilsonmickey

My employer is Norweigan. I pay my taxes there. Simples.

stevenmu

From:http://www.revenue.ie/en/personal/circumstances/moving/tax-residence.html

How do I know if I am resident in Ireland for a tax year?

Your residence status for tax purposes is determined by the number of days that you are present in Ireland in a tax year. You will be resident in Ireland for a tax year in either of the following circumstances:

-If you spend 183 days or more in Ireland during a tax year or,
-If you spend 280 days or more in Ireland over a period of two consecutive tax years, you will be regarded as resident for the second tax year. For example, if you spend 140 days here in Year 1 and 150 days here in Year 2, you will be resident in Ireland for Year 2.

What income will I be chargeable to tax on in Ireland?

You will be taxed on your worldwide income, for a tax year, that you are resident, ordinarily resident and domiciled in Ireland for tax purposes.

Simples.

nilsonmickey

Exactly. Pay your taxes.

stevenmu

nilsonmickey wrote: »

Exactly. Pay your taxes....

in Ireland.

Mena

nilsonmickey wrote: »

My employer is Norweigan. I pay my taxes there. Simples.

Being this stubborn is going to cost you dearly. Take the advice and speak to a tax expert. I'm in a similar situation and trust me, it's complicated as hell.

Speak to an accounting firm with expertise in this area.

CabbageThing

Many thanks for the replies.

Here is my situation , the company is based in London , the job itself is based in Dublin I live in Dublin and the wages will be paid into my account in Newry.I am an employee of the company not freelancing. So is it my responsibilty to submit a tax self assessment?

srsly78

No it is the responsibility of your employer to operate Irish PAYE on your salary. Getting paid into a UK bank account is not relevant.

Contact Revenue and inform them your employer is not following the rules.

nompere

srsly78 wrote: »

No it is the responsibility of your employer to operate Irish PAYE on your salary. Getting paid into a UK bank account is not relevant.

Contact Revenue and inform them your employer is not following the rules.

Revenue may then follow this rule:

2.1.2 Failing to register with the Revenue Commissioners

Where an employer pays income which is within the scope of the PAYE system but fails to register for that purpose, the Revenue Commissioners may compulsorily register the employer, estimate the tax due and seek payment of the amount of deductions the employer should have made under the PAYE system from the income paid to employees.


In other words they can collect the PAYE from the employee.

You'll find this in http://www.revenue.ie/en/practitioner/law/statements-of-practice/sp_it_3_07.pdf

srsly78

Doh! Bit of an awkward situation then...

OP your employer is making a balls of this and it will cause problems for everyone involved in the future. Tell them to sort it out! If they refuse then you will have to explain things to the Revenue, this is not your fault after all.

Gerry T

nilsonmickey wrote: »

And how is anyone going to find out if you are lying? I pay my taxes. More than here. I just pay them elsewhere.

If the Irish Revenue audit you they will send you a tax bill, they will add penalties for your non disclosure of earnings and they can add interest on what you owe. There is no limit to the number of years they can go back. You could end up with a tax bill in the tens of thousands.

Tax returns are the sole responsibility of the individual, if your employer makes a balls of it....its your fault and you pay the consequences.

My advise is to seek professional advise, a good tax accountant, and fast