Contracting in Ireland

[Jitesh_L]

Hi
I am from UK and about to start working in Ireland, and this will be 1st contract (which is 6 months).
I set up a limited company in UK, and will be paid in pounds by agency which is based in UK as well.
Now i believe I will be resident in Ireland for less than 183 days in Irish Tax year, which means i won't be classified as a tax resident, but Will I have to still pay Irish Tax and register for PRSI (Irish Social Security) on the salary my company pays me, or will I just be subject to UK income tax
Anyone that knows anything about this could they advise
Thanks
Jitesh

[meridian]

If you're not going to be tax resident in Ireland, will you be tax resident (and/or ordinarily resident and/or domiciled) in the UK for the UK tax year?

Bear in mind that the Irish tax year runs Jan to Dec, the UK tax year runs April to March.

[Jitesh_L]

I believe I will be Tax resident in UK, but not in Ireland as my 6 month contract starts next week, and so I would only be in Ireland for this tax year for 3 months and 3 months next tax year, but Just want to clear up whether I have to register for Irish Social Secuirty/PRSI and pay Irish Tax, as some places I have read that I have to pay PRSI Irish tax on whatever Salary I choose for my company to pay me via PAYE regardless of how long i stay

[meridian]

Starting with the UK first, http://www.hmrc.gov.uk/pdfs/ir20.htm states
Broadly, the United Kingdom (UK) charges tax on income arising in the UK, whether or not the person to whom it belongs is resident in the UK and income arising outside the UK which belongs to people resident in the UK.

So you'll be liable for PAYE and NICs here in the UK.

In Ireland, http://www.revenue.ie/leaflets/res2.pdf tells you that for any tax year during which you are non resident and non ordinarily resident in Ireland you will be chargeable to tax on your income from Irish sources only.

Q17 says that unless your income is relieved from Irish tax under the provisions of a double taxation agreement it will be taxable here from the date of your arrival regardless of your Irish residence status for tax purposes.

The table in the Appendix tells you that if you are Not resident, not ordinarily
resident and not Irish domiciled than you are taxed on foreign sourced income in respect of a trade, profession or employment exercised in Ireland. Note that the remittance basis does not apply to income from the UK.


There's probably an argument as to whether your salary in the UK is defined as Irish-sourced income. If it is then you'll be taxable in Ireland and will be able to recover any overpayment in the UK anyway via the double-tax treaty.


As an aside, there appears to be a requirement for your non-resident company to declare itself to the Irish revenue authorites - under the Finance Act 1999, non-resident companies must declare their country of residence, the name and address of any qualifying trading company in Ireland, the name and address of any qualifying quoted controlling company, or else the name and address of the ultimate beneficial owners.

[Jitesh_L]

Thank for the info,
However it is my company which has a contract with UK Agency, and UK Agency has conttract with company in Ireland, so do I still need to register my company with Irish authorities? How woulld I clarify whether my income is thought of as source from Ireland, as what i can see is income is coming from UK based agncy to my company then to myself as a salary

[cykophysh39]

I just finished a gig in Ireland, for the past eight months.
You don't need to do anything, just turn up and start your gig.
I was contracted with an Irish Agency, so the only thing I did was I couldn't charge VAT, as I was exporting my services to ireland.

Remember that the 183 days does not include your days of travel.

SO if you're planning on doing what I did and commute on a weekly basis, Fly in and out on Monday and Friday, as essentially these days do not count towards your 183 days, so essentially you are only counting 3 days a week towards your 183 days.

If your resident in Ireland for longer than 183 days, you have to worry about the Irish Tax things, up and till that point enjoy your new gig.

[meridian]

Remember that the 183 days does not include your days of travel.

No, that's the UK law. Irish count days as whether you are in the Republic at midnight.

[NotAllThere]

Doesn't that amount to the same thing? ( But rather more sensibly stated )

NotAllThere

[ASB]

Doesn't that amount to the same thing? ( But rather more sensibly stated )

NotAllThere

No, it turns the 3 days into 4 because Monday is included, Friday isn't. I think we are going that way too. This may infuriate those who just maintain non residency whilst working here but living in Monaco.

[downey]

Contracting Ireland

Hi,

I have just moved to Ireland and have been offered a 3 month contract in Dublin.

I am based in Cork and am hoping I can expense my travel costs and accomodation. Since the length of the contract is undermined past the 3 months. That is it could run on 6 12 months etc and am un sure if I will be tax compliant.

Can you offer me any advise concerning my situation that is what I am entitled to expense etc.