One salary from the uk, one salary from Ireland

DiarmaidGNR

If I have two salaries coming in, one from the UK and goes into my UK bank account, and another salary coming from ROI and going into my Irish account, -how will I be taxed?

I know there is a Double taxation treaty between the UK and ROI, but how will that affect me with tax rate bands on income?

Will both salaries be taxed at the lower tax band? Or will all earnings (UK and Ireland) above this band be taxed at the higher rate?

PCX

I can't remember all of the rules on this off the top of my head but I know that you need to give more information if you want a proper answer.

Some of the important points -
Where are you resident and where domiciled?
Where do you carry out the duties that you are being paid for? i.e. is the UK company paying you for work you actually undertake in Ireland or vice versa?
Is all of the income subject to PAYE in the UK and Ireland?

DiarmaidGNR

Resident and domiciled in the Republic.

One job in the Republic, and one job in Northern Ireland. Time will be split between the two offices. Two completely seperate companies, with two seperate salaries.

Both Jobs are subject to PAYE.

Any idea what the tax situation will be? Will both salaries be able to avail of the lower tax band?

whomitconcerns

You will have to report your net income outside of Ireland as an Irish citizen. This will be taken into account with your Irish salary to calculate tax due. Basically you will have to file your own tax return

hamlet10000000

I have a son in the UK on a contract for 6 months. He is an Irish Citizen , 24 years of age. He is paid gross and he tells he does have to pay here or in the UK because it is less than 6 months. I am dubious about this. Any help?

hamlet10000000

Any tax I mean.

whomitconcerns

hamlet10000000 wrote: »

I have a son in the UK on a contract for 6 months. He is an Irish Citizen , 24 years of age. He is paid gross and he tells he does have to pay here or in the UK because it is less than 6 months. I am dubious about this. Any help?

well if hes an Irish resident he has to pay tax in ireland on any income earned globally. He needs to make a self declaration. There is no "no tax" situatuon

Mrs OBumble

whomitconcerns wrote: »

well if hes an Irish resident he has to pay tax in ireland on any income earned globally. He needs to make a self declaration. There is no "no tax" situatuon

That's if he's an Irish resident.

But if he's moved out of Ireland (to the UK for now), and it going to move somewhere else (eg Australia) for six months after that, then it's possible he won't actually be tax-resident anywhere.

whomitconcerns

He would still be liable for taxation as a current Irish resident, however in the circumstances you suggest he may be due a refund if he became non resident, doesn't change the fact that as of right now he has a tax liability in Ireland.

Mr. Incognito

If you have income in both jurisdictions then you will be taxed in both jurisdictions.

For employment both countries have primary taxing rights where the duties of the contract of employment are carried out.

If it is for the same company they usually have tax equalisation policies where they will file your income tax returns.

If it is not, you will likely have to file an Irish and UK tax return with the income of the other jurisdiction applied and a credit taken for the other income tax suffered under the double taxation treaties.