Irish Resident Working fulltime for UK Company

ComingBack

Hi there,

My wife and I are coming back to Ireland after 13 years living and working in London.

She is going to be working fulltime in Ireland and will be paying all the relevant taxes there. My current plan is to commute to London for 3 days every week and work remote the other two.

From what I understand, I will end up being an Irish Resident working for a UK company fulltime. I am a permanent member of their staff and have worked for the company for the last 10 years. I will be getting paid as usual into UK back account and paying UK tax. The only difference is my ridiculous commute!

From what I have researched, I will not be liable for any tax in Ireland in this scenario (I won't get taxed twice), however, an Irish friend of mine says that I might still be liable to pay the Universal Social Charge in Ireland as a percentage of my UK salary.

Is there any truth to this?

As you can imagine, commuting to London is already going to eat into my salary so I need to be sure it's viable.

Any help would be much appreciated.

Cheers,

Steve

CIARAN_BOYLE

You pay UK income tax and then somewhere between the end of the year and following year you make a tax return to Irish revenue claiming any UK tax paid as a credit.

Pawwed Rig

Sounds like you will be claiming trans border workers relief. Do a search for it on revenue.ie and all the info is there.

your friend is incorrect

dbran

Hi

Transborder Workers relief may not apply because the UK employment is not exercised wholly in the UK as you will be working remotely in Ireland for 2 of the days. It will all depend on what it actually says in your contract of employment.

If it is a foreign contract of employment and some of the work is deemed to take place in Ireland then the UK company is required to register as an employer with the Irish Revenue and Irish payroll taxes are required to be deducted on the 2 days that you work remotely and UK payroll taxes on the remainder.

This has the potential to become quite messy and complex as if you are deemed to be Irish Resident you are obliged to file a return with the Irish Revenue and the senario described by Ciaran above would apply.

You should seek proper advice on this.

Best Regards

dbran

ComingBack

dbran wrote: »

Hi

Transborder Workers relief may not apply because the UK employment is not exercised wholly in the UK as you will be working remotely in Ireland for 2 of the days. It will all depend on what it actually says in your contract of employment.

If it is a foreign contract of employment and some of the work is deemed to take place in Ireland then the UK company is required to register as an employer with the Irish Revenue and Irish payroll taxes are required to be deducted on the 2 days that you work remotely and UK payroll taxes on the remainder.

This has the potential to become quite messy and complex as if you are deemed to be Irish Resident you are obliged to file a return with the Irish Revenue and the senario described by Ciaran above would apply.

You should seek proper advice on this.

Best Regards

dbran

Thanks dbran. I'm am definitely going to seek professional advice once I arrive in Ireland.

I requested flexible working via my employer and I'm going through the process as we speak. You mention a contract, but to my knowledge, my original mon-fri contract will not actually be altered. The flexible working is a written agreement with regular reviews.

The flexible working is something they are allowing me to do but they can revoke at any time based on the monthly reviews. My worry at the moment is the more complicated it becomes for my UK employer, the higher the chance they will revoke the flexible working.

Niallo_

How did this pan out for you Comingback? I am about a to start a part time contract, 2 days a week in England and going to part time here in Ireland 3 days a week with a family business. I found on this North - South Ireland funded website a section that is useful. borderpeople.info/about-us

It states that (borderpeople.info/a-z/taxation)
"As a cross border worker you must pay income tax in the country where you earn your income, but your ultimate tax responsibility is with the country where you live so you must submit an annual self assessment tax return each year declaring your worldwide income. A Double Taxation Agreement is in place between the UK and Ireland so you will be awarded a credit for any tax paid across the border."

That definition works well for me as I just need to fill a self assessment for Revenue at the end of the year but for you did your 2 days a week in Ireland make it messy?

Niall