Remote Working in Ireland For UK Company

Danji

I have been offered a job for a UK company to work remotely from Ireland (with the odd day here or there in their UK office). The company has no presence in Ireland but are happy to pay into my Irish account and assist in any way they can.

My questions are mainly around tax. Is this achievable from a tax perspective? I assume I would be an Irish tax resident given I will be in the country over 183 days per year but what would be my obligation to the taxman in the UK?

Danji

@Moderators - could you please move this to the Taxation forum? I feel this thread would be more suited there.

Tabnabs

Having worked for a UK based company in the past, it's complicated. Don't ask the advice of random strangers on the internet and get a good accountant who specialises in tax to advise you and assist in making returns, if necessary.

Danji

Tabnabs wrote: »

Having worked for a UK based company in the past, it's complicated. Don't ask the advice of random strangers on the internet and get a good accountant who specialises in tax to advise you and assist in making returns, if necessary.

Of course, I have already asked my UK accountant to look into it. I feel its always good to get a discussion on these things to see other people's experiences and opinions

BailMeOut

I do the same thing for a US company and it's very straightforward. My biggest advice however is to be prepared to walk away from any accountant you talk to as you'd be surprised how useless some of them are when it comes to taxes and anything complicated. Best to use a medium or larger-sized firm with lots good of interal resources ortherwise you will be paying your accountant to just refer you to another. First step is to register as a sole trader or if it makes sense setup your own corporation. You'll get a good sense of how good your accountant is when you ask them about these options and pros/cons of each. They will also be able to help you budget paying for your taxes expecially for the first year as if you are not very careful and well organized you can find yourself in a bind when you have to write that first big annual cheque to revenue!

Good luck though and choose your adviors carefully.

Danji

BailMeOut wrote: »

I do the same thing for a US company and it's very straightforward. My biggest advice however is to be prepared to walk away from any accountant you talk to as you'd be surprised how useless some of them are when it comes to taxes and anything complicated. Best to use a medium or larger-sized firm with lots good of interal resources ortherwise you will be paying your accountant to just refer you to another. First step is to register as a sole trader or if it makes sense setup your own corporation. You'll get a good sense of how good your accountant is when you ask them about these options and pros/cons of each. They will also be able to help you budget paying for your taxes expecially for the first year as if you are not very careful and well organized you can find yourself in a bind when you have to write that first big annual cheque to revenue!

Good luck though and choose your adviors carefully.

Thanks for the input. Unfortunately due to IR35 in the UK, the company will not hire independent contractors so it would be a strictly permanent role (no limited company/sole trader option).

I also fully agree with the accountant adivce. Having contracted in the UK for a few years I have come across some pretty poor accountants in my time, usually fresh-faced grads who bank on not being asked any left-field questions.

On a side note, would you have any recommendations for good tax accountants? I have heard the name Taxassist come up a few times.

BailMeOut

Danji wrote: »

Thanks for the input. Unfortunately due to IR35 in the UK, the company will not hire independent contractors so it would be a strictly permanent role (no limited company/sole trader option).

I also fully agree with the accountant adivce. Having contracted in the UK for a few years I have come across some pretty poor accountants in my time, usually fresh-faced grads who bank on not being asked any left-field questions.

On a side note, would you have any recommendations for good tax accountants? I have heard the name Taxassist come up a few times.

PM me and I will send you the accountants I use who deal a lot with UK.

Diziet

Danji wrote: »

I have been offered a job for a UK company to work remotely from Ireland (with the odd day here or there in their UK office). The company has no presence in Ireland but are happy to pay into my Irish account and assist in any way they can.

My questions are mainly around tax. Is this achievable from a tax perspective? I assume I would be an Irish tax resident given I will be in the country over 183 days per year but what would be my obligation to the taxman in the UK?

Does the UK company have any presence as an employer in Ireland? It is much easier if they do.

daheff

are you then employed by the UK entity but located in Ireland? So paid in GBP rather than EUR?

To the best of my knowledge:!!
A couple of things on this -you'll be taxed as Irish resident by Revenue. You'll have to make your own declarations to them.
You might also fall under UK tax net. If so there will be some offset of tax paid in both jurisdictions, but ultimately you'll pay the higher tax
If you are paid in GBP you will be subject to fluctuating income (FX rates). What do you do GBP/EUR rate drops to a level where its no longer economical for you?


other things to consider - costs of equipment/electricity/internet/phone/printing etc. Who pays for this?

Mrs OBumble

Check www.borderpeople.info to see about the range of issues you will have.

Danji

Diziet wrote: »

Does the UK company have any presence as an employer in Ireland? It is much easier if they do.

Unfortunately not. Based on a discussion with my accountant earlier it seems the company would need to register for PAYE and payroll with revenue in Ireland. Whether they are prepared to do that or not I don't know but I will discuss with them.

daheff wrote: »

If you are paid in GBP you will be subject to fluctuating income (FX rates). What do you do GBP/EUR rate drops to a level where its no longer economical for you?

That was something I discussed with them and they were willing to pay in Euro so hopefully that would be fine.

daheff wrote: »

other things to consider - costs of equipment/electricity/internet/phone/printing etc. Who pays for this?

I would bear that cost, although I already have all the equipment as I do quite a lot of remote work for them at the moment in the UK. I guess any required travel to the UK would come out of my pocket alright.

deconduo

Danji wrote: »

Thanks for the input. Unfortunately due to IR35 in the UK, the company will not hire independent contractors so it would be a strictly permanent role (no limited company/sole trader option).

IR35 only applies to UK Tax residents - there's no issue with Irish based contractors. Might be worth mentioning it to them if they don't realise that.

Danji

deconduo wrote: »

IR35 only applies to UK Tax residents - there's no issue with Irish based contractors. Might be worth mentioning it to them if they don't realise that.

True, but the company has made a blanket decision to force all contractors, regardless of location, to go through a PAYE umbrella company so unfortunately thats a non-runner

BailMeOut

Danji wrote: »

True, but the company has made a blanket decision to force all contractors, regardless of location, to go through a PAYE umbrella company so unfortunately thats a non-runner

And that PAYE company is UK based? I'd talk to them as I bet they have others in a very similar situation.