UK Employer - working from home Ireland

vqr2a0kg3lywos · 13-10-2019 1:12pm #1

Hey all,

I'm currently looking at potentially taking a new job working from home in Ireland with a UK employer and wondering how the tax situation works.

For context - I'm from the UK but have been living and working in Ireland for 6+ years - I get paid through the PAYE system currently in Ireland.

If I take this job I'll still be living in Ireland and assume I pay tax in Ireland still without needing to pay anything in the UK?

The UK company currently only employs people in the UK - can they pay through PAYE in Ireland so that all my tax is covered the same as it always has been?

They want to take me on as a contractor - would PAYE still be possible?

If they decide they want to make me invoice every month instead of going through PAYE as self employed do I just need to fill in a form 11 at the end of the year like I did for additional income earned in the last couple of years?

Thanks for any help you can provide - I've tried Googling this but it always seems to come up with different situations/scenarios.

Calahonda52 · 13-10-2019 5:33pm

Are you going to register for VAT?
They wont do PAYE in any event, the contractor route millwork as you describe

Mrs OBumble · 13-10-2019 5:47pm

Another option is to use an umbrella company: you become an employee of the UC, and they invoice the company you work for.

This leaves you on PAYE and so with eligibility for welfare rtc.

Sinbad_NI · 13-10-2019 5:53pm

Careful if your going from staff on a Friday to contractor on a Monday without another job in between, you'll not be able to avoid UK IR35 guidelines in that case and not get the tax benefit of the ltd company route.

vqr2a0kg3lywos · 13-10-2019 9:03pm

Calahonda52 wrote: »

Are you going to register for VAT?
They wont do PAYE in any event, the contractor route millwork as you describe

They won't do it, or they CANT do it?

vqr2a0kg3lywos · 13-10-2019 9:04pm

Sinbad_NI wrote: »

Careful if your going from staff on a Friday to contractor on a Monday without another job in between, you'll not be able to avoid UK IR35 guidelines in that case and not get the tax benefit of the ltd company route.

I'm so confused...

I'd be going from normal employed in Ireland through PAYE to staying in Ireland but being employed by a UK company instead.

Can they not pay me through PAYE?

If not I'll have to invoice them, can I just fill in a form 11 end of the year?

vqr2a0kg3lywos · 13-10-2019 9:12pm

I should add - they are looking into whether they can pay me through PAYE in Ireland so if that's an option then it sounds like they'll do it.

So really I'm trying to find out ahead of time if it is.

zephyro · 13-10-2019 9:39pm

Yes tax in Ireland and nothing needed in UK. They could pay through PAYE but they'd need to register with Revenue as an employer in Ireland, would be amazed if they went to the trouble just for you. Assuming they don't, you'll have to go for sole trader/umbrella/ltd. and invoice them, in which case your working arrangements should meet the Revenue criteria for self-employment

vqr2a0kg3lywos · 13-10-2019 9:42pm

zephyro wrote: »

Yes tax in Ireland and nothing needed in UK. They could pay through PAYE but they'd need to register with Revenue as an employer in Ireland, would be amazed if they went to the trouble just for you. Assuming they don't, you'll have to go for sole trader/umbrella/ltd. and invoice them, in which case your working arrangements should meet the Revenue criteria for self-employment

Thanks! I've just been reading up some more.

Seems like PAYE isn't an option - either you are employed by the company and they have to do PAYE, or you're set up as a contractor.

So I guess I'm hoping they go for the employment route...

I think registering with revenue in Ireland really depends what costs are involved. If it's a lot they won't, if it's not they may well do it - it's a company I'm very close to already - so fingers crossed I guess.

If I go contractor route can I just fill in a form 11 via my accountant every year? I'm already earning additional income outside of PAYE so have an accountant filing that for me this year already.

zephyro · 13-10-2019 9:48pm

It's not you personally that'll be invoicing them, it'll be whatever vehicle you choose (sole trader/umbrella/ltd.), a return will be required for this in addition to your own form 11.

vqr2a0kg3lywos · 13-10-2019 9:49pm

zephyro wrote: »

It's not you personally that'll be invoicing them, it'll be whatever vehicle you choose (sole trader/umbrella/ltd.), a return will be required for this in addition to your own form 11.

Can I just do form 11 though? Earn the money like I am with additional income but it will be invoiced regularly?

relax carry on · 13-10-2019 9:59pm

Where will the work be carried out and are the customers based in Ireland?

zephyro · 13-10-2019 10:01pm

Don't get you ... do you realise you'll have to follow Revenue regulations on invoicing and charging VAT?

Mrs OBumble · 13-10-2019 10:35pm

zephyro wrote: »

It's not you personally that'll be invoicing them, it'll be whatever vehicle you choose (sole trader/umbrella/ltd.), a return will be required for this in addition to your own form 11.

If s/he is sole trading, then there's no other vehicle involved: if is you as an individual who are invoicing. But it's possible that the client would be unwilling to contract with a sole trader.

OP, as well as invoicing and tax, if you are going to be self-employed in Ireland you also need professional indemnity insurance. It's not enough to not be incompetent, you also need insurance which covers legal representation in the case that someone claims you are. You may also need public liability insurance, depending on the risks your work involves.

zephyro · 13-10-2019 10:54pm

Mrs OBumble wrote: »

If s/he is sole trading, then there's no other vehicle involved: if is you as an individual who are invoicing. But it's possible that the client would be unwilling to contract with a sole trader.

Was assuming they'd register a business name but yes there's also the option of using their own name as you say.

vqr2a0kg3lywos · 13-10-2019 10:58pm

Mrs OBumble wrote: »

If s/he is sole trading, then there's no other vehicle involved: if is you as an individual who are invoicing. But it's possible that the client would be unwilling to contract with a sole trader.

OP, as well as invoicing and tax, if you are going to be self-employed in Ireland you also need professional indemnity insurance. It's not enough to not be incompetent, you also need insurance which covers legal representation in the case that someone claims you are. You may also need public liability insurance, depending on the risks your work involves.

Blimey! This is getting complicated...

If I can get them to pay me through PAYE then I don't need to worry about any of this right?

vqr2a0kg3lywos · 13-10-2019 11:03pm

zephyro wrote: »

Was assuming they'd register a business name but yes there's also the option of using their own name as you say.

That's what I thought - I've invoiced them myself personally before on the odd occasion when I wasn't working directly for them.

But now I'd be getting regular work from them and it would be my main employment.

Sinbad_NI · 13-10-2019 11:05pm

Adilynn Unimportant Genius wrote: »

I'm so confused...

I'd be going from normal employed in Ireland through PAYE to staying in Ireland but being employed by a UK company instead.

Can they not pay me through PAYE?

If not I'll have to invoice them, can I just fill in a form 11 end of the year?

Sorry I though you were staying with the same company and changing your arrangements with them. Rereading I guess that's incorrect.

Do a Google search there's loads of info out there on dedicated contracting web sites.

UK Employer - working from home Ireland

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