Remote Working

[Garryb]

Hi all,

I’ve been searching the forum but struggling to find the answer.

I’ve been offered at contract to work on a clients site in Dublin for a UK business. I’ll be working through my uk ltd business, invoicing to a uk agency for a uk business getting paid in GBP. However I’ll be working on a customers site in Dublin for 5 months flying in and out and staying in hotels etc.

So my question is do I need to be concerned about any possible taxation implications? also do you think Brexit would be an issue?

Thanks for your help

[Lance]

Remote Working

I think if you’re there less than 183 days total, then it’s not an issue.
Make sure you have business travel insurance.

However........ Brexit may well change that.

[meridian]

Hi all,

I’ve been searching the forum but struggling to find the answer.

I’ve been offered at contract to work on a clients site in Dublin for a UK business. I’ll be working through my uk ltd business, invoicing to a uk agency for a uk business getting paid in GBP. However I’ll be working on a customers site in Dublin for 5 months flying in and out and staying in hotels etc.

So my question is do I need to be concerned about any possible taxation implications? also do you think Brexit would be an issue?

Thanks for your help

Invoicing to a U.K. agency for the U.K. Clientco you should be okay taxation wise. Place of supply should be in the U.K.

Work out your place of supply of services for VAT rules - GOV.UK

Brexit-wise, there should be no change in terms of visas, ability to work, etc. U.K. nationals are fine in Ireland under the CTA. Flights should still be okay, but there may be some disruption to schedules. Check your PI insurance to make sure you’re still covered

Main issue is probably one that nobody can tell you - if there is a serious currency devaluation, then you’re being paid in Sterling but your accommodation costs are in Euros. Of course, if there is no devaluation then nothing to worry about.

[TheCyclingProgrammer]

I think if you’re there less than 183 days total, then it’s not an issue.
Make sure you have business travel insurance.

However........ Brexit may well change that.

The 183 day rule determines tax residency. OP could be liable to pay tax in Ireland on their earnings for work performed there from day one.

OP may also need a work permit if we leave the EU on the 29 March.

Contracting in Ireland with a UK Limited Company – Guide to Irish Tax – Fenero

[meridian]

The 183 day rule determines tax residency. OP could be liable to pay tax in Ireland on their earnings for work performed there from day one.

OP may also need a work permit if we leave the EU on the 29 March.

Contracting in Ireland with a UK Limited Company – Guide to Irish Tax – Fenero

Is the OP contracting in Ireland, though? Or are they contracting in the UK (contract is with UK agency, end client is UK company) with only the place of supply of services being Ireland?

Work permits won't be required if the OP is a British or Irish citizen.
Common Travel Area Guidance - GOV.UK

[TheCyclingProgrammer]

Is the OP contracting in Ireland, though? Or are they contracting in the UK (contract is with UK agency, end client is UK company) with only the place of supply of services being Ireland?

Work permits won't be required if the OP is a British or Irish citizen.
Common Travel Area Guidance - GOV.UK

If they are working in Ireland they are contracting in Ireland.

[meridian]

If they are working in Ireland they are contracting in Ireland.

Are they?

I’m not trying to be obtuse about the question, it’s very relevant to a recent contract I was offered, and my current position.

In my case, the company I would have been contracted to is in Surrey, all invoices were to the UK agency, but for a couple of days a week the work was in Amsterdam.

Current Clientco, based in London but 1 week in 4 I’m in Spain.

In both cases I’ve assumed that the agency is U.K., the client is U.K., it’s just the client site that happens to be outside of the U.K. Not even thought about whether any work I’m doing offshore is relevant for offshore taxes.

I’ll need to do a bit more research, but I don’t think it’s quite as clear cut as you seem to.

[ShandyDrinker]

Check out:

https://www.contractoruk.com/forums/...ing+in+ireland

I spent a while working in Dublin in the second half of 2011 and again in the second half of 2012. You need to read up on the PRSI exemption if working through your UK limited but also need to be very mindful of the number of days spent over there before you become liable for Irish tax which IMO would make contracting over there pointless as the rates are typically sub what you'd get in London.

As for post Brexit, that'll be a whole different ballgame.

[meridian]

After a bit more Googling, my interpretation of the OP’s situation would be:

- OP is contracting in the U.K. (contract between OPCo and agency is in U.K., contract between agency and end client is in U.K., all payments are in the U.K.)
- However, as part of that contract, OP undertakes business travel to Ireland

Ireland appears to have changed their PAYE rules in 2016, so that now any business travel that does not include “incidental duties” will be caught from Day 1.

So, given that it is unlikely that OP will only be undertaking incidental duties, it looks like OPCo will be liable for Irish PAYE from the start of the contract.

Explainer from Deloitte’s here, plus Revenue Statement of Practice.

UK/Ireland Business Trips -Foreign Payroll traps?

https://www.revenue.ie/en/tax-profes...sp-it-3-07.pdf

[BlasterBates]

The 183 day rule is often quoted. The 183 day rule determines tax residency. Tax residency is misunderstood as meaning you are exempt from all taxes if you are not resident.

This is wrong.

Both residents and non-residents are liable for tax in any country. If you work in Ireland there will be tax implications as your Irish income will be taxable even if you are not resident in Ireland.

Now the question arises what does tax residency means. Wherever you are tax resident is where your worldwide income is taxed. In Ireland if you are not tax resident you wouldn't be expected to declare UK income in that tax year. That is the difference.