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Live in Ireland company in UK - Tax Advice

  • 09-02-2016 9:57pm
    #1
    pavb2
    Registered Users, Registered Users 2 Posts: 3,064 ✭✭✭


    Hi all

    My wife lives in Ireland but Is a director of a new company We have set up in the UK. I spend most of my time in the UK so pay uk tax. She works from home in Ireland and does all the company admin working about 5 days a week. There is some travel back and forward to the UK about 7/8 times a year.

    I want to pay her a salary so who do I speak to regarding the best way to set this up and pay tax.

    Both My UK and Irish accountants cant give me any definitive course of action.


Comments

  • #2
    adrianw
    Registered Users, Registered Users 2 Posts: 236 ✭✭adrianw


    This arrangement is quite common.

    As your wife is resident in Ireland and performs the duties of her role in Ireland, the UK company will need to register as an employer in Ireland and apply PAYE, PRSI and USC in Ireland.

    On basic principals, as a resident of Ireland, all income earned in Ireland will be taxable in Ireland.

    However, the UK HMR&C may also seek to tax the salary as it arises from a UK office. Therefore, we need to look at the Ireland UK Double Taxation Agreement. Article 15 would favour the income being taxed in Ireland.

    There is case law 'Tipping v Jeancard' that may suggest otherwise.

    What you will need to do is - contact the UK HMR&C and ask them for a determination / confirmation that the role is not subject to UK Income Tax and National Insurance as the majority of duties are carried out in Ireland.


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