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Tax for an employee of a foreign company

  • 16-11-2015 8:23am
    #1
    Closed Accounts Posts: 1


    Hi, any advice would be really appreciated. I have just started working for an American company. I am Irish and work from home in Ireland for this company over the internet. They are an entirely American based operation, with me as the sole employee based in Ireland. So what I'm trying to clarify is how best to proceed with the tax situation.

    I'm open to correction on all of this but I believe I have three options:

    1. My employer registers as a foreign employer here and pays my PAYE, PRSI etc to Revenue directly.

    2. I register as a sole trader and bill my employer for my services.

    3. I register as a limited company and bill my employer for my services.

    As I understand it, for option 2 and 3 I would handle the tax returns myself.

    Am I right in saying that to claim expenses such as heating, electricity and computer equipment, this wouldn't be possible with option 1 if I was a normal PAYE employee? Also I understand the different options will each have varying implications when applying for a mortgage? As in banks tend to view standard PAYE employees as lower risk compared to a sole trader or limited company?

    Anyone have any experience of working in this way and able to offer any insight? Thanks.


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