Self employment tax

Lily_Aldrin7

My partner’s father is a free lancing algae’s researcher and he gets projects from companies which he completes and gets paid roughly 7-8 k (US dollars) a month depending on the project.
He lives in US but wants to relocate to Ireland to be closer to us and our children and as he works from home that shouldn’t be an issue.
He wanted to get an idea how much tax he would need to pay and it seems like 40% of his income - is that correct? We went to citizen information and they printed a page from the internet for us and couldn’t offer any advice so I thought I’d ask here is anyone has any info ?

Irishphotodesk

Lily_Aldrin7 wrote: »

My partner’s father is a free lancing algae’s researcher and he gets projects from companies which he completes and gets paid roughly 7-8 k (US dollars) a month depending on the project.
He lives in US but wants to relocate to Ireland to be closer to us and our children and as he works from home that shouldn’t be an issue.
He wanted to get an idea how much tax he would need to pay and it seems like 40% of his income - is that correct? We went to citizen information and they printed a page from the internet for us and couldn’t offer any advice so I thought I’d ask here is anyone has any info ?

Will he continue to get the projects, there will be a time zone difference, so he may be regarded as slow to respond or complete the project etc. Will the companies be ok with sending samples to Ireland (I assume that's what happens), weather conditions here may effect results (unless in a clean room environment)

As regards tax, I would suggest you talk to an accountant or revenue or both, to get a clearer picture.

My understanding is if he is earning approx €5k a month, he will have to pay his prsi, income tax etc, he will be taxed at the lower rate for everything earned before (approx) €40k after that it's the higher rate.
He may benefit from being vat registered, as any work purchases will be deductable, as he is dealing with an out of state entity he does not have to charge them VAT, but any work he might get here (hired by someone in Ireland) he would charge vat and give that amount to revenue, if his primary source will be out of the state it would be more than likely his work expenses could result in a vat rebate - which could be offset against his income tax and reduce the amount owed at the end of the year.

Ps. It may take some time to get himself set up here, PPS number, accommodation, landline, internet, household bills etc (assuming he isn't a citizen of Ireland already) there's potential visa issues etc.

antix80

Sure, income tax is high.. But what about tax on his investments? What about tax implications if he's a US citizen?

He's earning a decent wage.. I'd recommend he pay an accountant to go through the implications rather than rely on info you've gleaned from the internet.

Try deloittes tax calculator anyway..

http://services.deloitte.ie/tc/

veetwin

Also does he have a right to reside in Ireland? Americans cannot just move to Ireland with the appropriate permission.

namenotavailablE

For 2020, assuming that he's a self-employed person or director of his own company rather than an employee, here's what my Excel calculator is showing for incomes between €84000 and €96000 pa:



It's well worth him getting professional tax advice as his non-domiciled status might be useful to him in terms of determining how much of his earnings are taxable.