Working in UK/Living in Ireland TAX

[ASB]

I am considering a move to Ireland and trying to find out the position, but it seems that this is probably not an entirely unusual situation. I will however still have some interests in the UK, property etc and remain domiciled there. My visits will be very limited and I do not anticipate being resident in the UK.

My significant sources of income are:-

Rental. Property is all in the UK.

Salary. I am a permie. Employed by the UK arm of a multinational. Work will be mainly done from home in Ireland. Though there will be occasional visits to the UK (and elsewhere).

My current understanding from the DTA:-

Article 4: Fiscal Domicile - Ireland. There is no permanent home available to me in the UK. They are all let.

Article 7: Property income. This places the taxation of this solely on the state it is situated in, i.e. UK. I assume this means the non resident landlord scheme may be needed (which would hack off the tenants since this means they have to deduct my tax from the rent and pay it over - hassle for them).

Article 15: Employments. Generally this would be taxed in the UK. However under para 1 since the employment is undertaken in Ireland this appears to give them sole taxing rights. [UK only has a right to tax if I am there for > 183 days according to my reading of para (2) (a)].

Article 17: Seems to ensure that pension contributions are still deductible in the UK (though since not taxed there surely the point is moot). In any event the contributions are salary sacrifice which may complicate things. (b) (i) seems to cover this though. There is a 10 year thing though which I can't figure out, but I have been employed by said UK company for 10 years now.

So, on the face of it UK don't get to tax unless I am there more than 183 days. Ireland gets to tax.

But, the employer of course has an Irish arm. So there is the association. I will be firing off stuff to HR obviously, but any suggestions/guidance etc from anybody with specific knowledge or who has been in a similar position would be welcome.

Then of course there is social security to think about.

[ContrataxLtd]

I am considering a move to Ireland and trying to find out the position, but it seems that this is probably not an entirely unusual situation. I will however still have some interests in the UK, property etc and remain domiciled there. My visits will be very limited and I do not anticipate being resident in the UK.

My significant sources of income are:-

Rental. Property is all in the UK.

Salary. I am a permie. Employed by the UK arm of a multinational. Work will be mainly done from home in Ireland. Though there will be occasional visits to the UK (and elsewhere).

My current understanding from the DTA:-

Article 4: Fiscal Domicile - Ireland. There is no permanent home available to me in the UK. They are all let.

Article 7: Property income. This places the taxation of this solely on the state it is situated in, i.e. UK. I assume this means the non resident landlord scheme may be needed (which would hack off the tenants since this means they have to deduct my tax from the rent and pay it over - hassle for them).

Article 15: Employments. Generally this would be taxed in the UK. However under para 1 since the employment is undertaken in Ireland this appears to give them sole taxing rights. [UK only has a right to tax if I am there for > 183 days according to my reading of para (2) (a)].

Article 17: Seems to ensure that pension contributions are still deductible in the UK (though since not taxed there surely the point is moot). In any event the contributions are salary sacrifice which may complicate things. (b) (i) seems to cover this though. There is a 10 year thing though which I can't figure out, but I have been employed by said UK company for 10 years now.

So, on the face of it UK don't get to tax unless I am there more than 183 days. Ireland gets to tax.

But, the employer of course has an Irish arm. So there is the association. I will be firing off stuff to HR obviously, but any suggestions/guidance etc from anybody with specific knowledge or who has been in a similar position would be welcome.

Then of course there is social security to think about.

Hi ASB

This is a massively complex area so you are unlikely to get a definitive answer on here that is specific enough to your situation. To point you in the right direction, you first need to determine your residence status from both a UK point of view and an Irish point of view. I don't know how to do this from the Irish point of view (I'm assuming you will be tax resident in Ireland) but for the UK you need to look at the HMRC document RDR3, this will enable you to determine your UK tax residency status.

Once you know you won't be resident in the UK (hopefully) you can then look at how various different sources of income will be taxed and where, this is where the DTA may come in to play.

With regards to the Non resident Landlord scheme, you can apply for the rents to still be paid to you Gross without your tenants having to deduct tax in certain circumstances so this is worth looking into also.

Hope this gives you a bit of help.

Martin
Contratax Ltd

[BlasterBates]

As a non-resident you are still liable for tax in the UK.

UK Tax Obligations For Non-Resident Landlords - Tax - UK

This will also need to be declared in Ireland.

[jamespoole]

can get a little more complicated than yes or no.

[ASB]

Thanks Martin,

I do appreciate that it is complex. Trying to navigate my way through the SRT makes my head hurt :-(. However the "guidance tool" suggests I will be non-resident (UK) if what I anticipate happening does actually happen. What I can't figure out as yet is whether or not income from UK employment will be subject to UK tax in this circumstance.

Certainly I will be Irish resident, and it looks as though I might be only Irish resident rather than both.

It is helpful that I should be able to receive rental income gross - even though the tax will need to be paid via self assessment; that doesn't impose too much burden on the tenants.

At this stage I am just trying to get my head around what the result might be - it would appear that the worst case is paying the higher of the two. Indeed I think this is the expected outcome.

I have also queried things with the Irish revenue service since they authorise DTA claims for relief.

[BlasterBates]

Thanks Martin,

I do appreciate that it is complex. Trying to navigate my way through the SRT makes my head hurt :-(. However the "guidance tool" suggests I will be non-resident (UK) if what I anticipate happening does actually happen. What I can't figure out as yet is whether or not income from UK employment will be subject to UK tax in this circumstance.

Certainly I will be Irish resident, and it looks as though I might be only Irish resident rather than both.

It is helpful that I should be able to receive rental income gross - even though the tax will need to be paid via self assessment; that doesn't impose too much burden on the tenants.

At this stage I am just trying to get my head around what the result might be - it would appear that the worst case is paying the higher of the two. Indeed I think this is the expected outcome.

I have also queried things with the Irish revenue service since they authorise DTA claims for relief.

Simple answer is you're taxed where you do the work. If you do the work in Ireland you should tax it in Ireland and go on an Irish payroll. If you were to commute and work in the UK then you would go on a UK payroll.

If you work cross border it's exceptional to work on a foreign payroll for more than a few months, usually isn't tolerated, i.e. if you have a UK employment contract and you pay UK tax the Irish authorities will expect you to work in the UK and may ask for proof when they examine your tax declaration.

If you work in both places equally for an indefinite period it becomes complicated but what you can do is work on split contracts.