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Working in Ireland through US client

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    #11
    apologies for delayed messages, being new member my replies are reviewed first and then posted to the forum.

    I take it's not viable for long term to work in Ireland.

    If I say work for less then 183 days in Ireland, can I continue using UK Ltd and keep getting salary in UK (and pay UK taxes, claim back travelling and accommodation as expenses)?

    The current tax year would be (157 days), plus rolling 2 year I can work for 280 days before becoming resident. Am I right ?

    I'm UK citizen, family will be in UK so yes I will have to maintain house back as well.

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      #12
      Originally posted by stek View Post
      Agreed, but there is no real tax efficient contractor structure available in Ireland. No concept of dividends, and very little claimable as legitimate expenses.

      So it.s €33.6K at 25%, then 40%, then the killer, uncapped PRSI (NI) employees and employers, 5% each, and USC (Universal Social Charge) of 4%, so look at netting around 55%.

      If you’re running a place in UK too, it will cripple you, Dublin prices for accom. are super-high...
      Only one lot of 5% PRSI if self employed e.g. via director's umbrella.

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        #13
        Originally posted by siddhantkumar View Post
        apologies for delayed messages, being new member my replies are reviewed first and then posted to the forum.

        I take it's not viable for long term to work in Ireland.

        If I say work for less then 183 days in Ireland, can I continue using UK Ltd and keep getting salary in UK (and pay UK taxes, claim back travelling and accommodation as expenses)?

        The current tax year would be (157 days), plus rolling 2 year I can work for 280 days before becoming resident. Am I right ?

        I'm UK citizen, family will be in UK so yes I will have to maintain house back as well.
        You have to pay full Irish employment taxes from day 1 for work performed in Ireland regardless of residency. Anyone who advises you otherwise is wrong. It is perfectly viable to work here with your arrangements if you have the rate right.

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          #14
          Originally posted by Old Greg View Post
          You have to pay full Irish employment taxes from day 1 for work performed in Ireland regardless of residency. Anyone who advises you otherwise is wrong. It is perfectly viable to work here with your arrangements if you have the rate right.
          Thanks.

          One need to pay around 50% (give or take) of daily rates to Irish tax man as they don't have different rates for dividend payout. That would make working in Ireland unattractive.

          Or is there a way to save on taxes (i.e. paying low salary, rest as dividend in uk). For simplicity consider daily rate of £600 (paid in gbp)

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            #15
            Originally posted by siddhantkumar View Post
            Thanks.

            One need to pay around 50% (give or take) of daily rates to Irish tax man as they don't have different rates for dividend payout. That would make working in Ireland unattractive.

            Or is there a way to save on taxes (i.e. paying low salary, rest as dividend in uk). For simplicity consider daily rate of £600 (paid in gbp)
            Assume you need to pay all company income as employment tax in Ireland.

            But it isn't 50%. Look at this and select no for employee and yes for proprietary director and controlling shareholder.

            Deloitte | Budget 2018 Tax Calculator

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              #16
              Just checked my P60 before I left, averaged 40% tax

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                #17
                Your biggest problem will be accomodation in Dublin, I was Northside (rougher!) and paid €1200 month for a gloryfied shed, in central Dubs budget 1600-2000 for a room if you can find one.

                And none if this is tax deductable, all you get is first three months at a rate set by the Revenue Commissioners.

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                  #18
                  Originally posted by stek View Post
                  Just checked my P60 before I left, averaged 40% tax
                  That is about right. OP, talk to Sue at IPAYE as well who may have a different perspective.

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