Contractor returning to Ireland

Good evening,

I have worked for many years through my own limited company in the UK.

I need to return to Ireland for the foreseeable future to be with a very frail and elderly parent.

I am thinking of setting up my own limited company in Ireland.

My intention is to see out my current UK work contract which has been extended to the end of March 2016 (at least) - spending 3 to 4 nights a week in the UK and the rest of the time in Ireland. Depending on my parent's health, I may need to reduce my time in the UK further. and spend more time working remotely from Ireland.

If I set up an Irish company will I have to pay UK Corporation Tax as well as Irish Corporation tax.

Also, shall I be able to claim as expenses some of my travel to the UK for my work there.

I hope to get some work in Ireland through my limited company as well, though this may not be immediate.

Any help or advice you can give is really appreciated.

Many thanks,

Realta

Hi,

Stay working through your UK company for as long as possible.
You will pay far more tax through a Irish company

The revenue here will bleed you dry

I hope everything works out

rb

Hi RB,

Thank you for your advice, do you know though if I do that, will I just have to do a PAYE self-assessment tax return here or could I potentially be liable for Corporation Tax in Ireland on my UK company.

Thanks again.

Sometimes this site works against posters when people of limited knowledge weigh in with opinions as opposed to fact.

Irish corporation tax rate is 12.5%, the UK are bringing their rates down to roughly 16% over the next few years ... but they're not near the 12.5% for a few years. The rest of your query could involve a few pages of analysis so I couldn't hope to capture it all here, but lets give it a go ...

You can keep working through your UK Co. You could be tax-resident in both countries - the Double Tax Treaty will sort that out -but you could be liable to PAYE in both countries, this requires some immediate professional advice - which you won't get here (you need to know days working in which jurisdiction, the type of work, days of travel, type of UK accommodation .. ..)

The advantages of Personal Service Companies in the UK are being restricted in the latest Budget - I don't know what those restrictions are - but the advantages for companies such as yourself are a tax-arbritrage on VAT, reduced income tax on dividends. (If you don't know these already, likely you never got professional advice when incorporating yourself).

In the end/long-term; you will ultimately pay the equivalent of Irish tax at the marginal rate (which refutes RBs advice, unless you leave money in the UK company -but I'm unclear myself as to implications/savings of this).

Hi Eniledam,

There are a few things to consider.
Firstly in the short term, based on your current plan to work on a UK Contract until March 2016, it might be cleanliest to do this through your UK limited company. Until you actually get contracts in Ireland, you will inevitably spend a lot of time in the UK and will be tax resident there. if you do go over the time limits that make you tax resident here you can claim remittance for taxes paid in the UK.

Your UK company is not liable to Irish corporation tax as it is based and trading only in the UK. The fact you personally will spend considerable time in Ireland doesn't alter that.

If you set-up an Irish Ltd. company for future Irish contracts that should be fine. Your Irish company will have to pay Corporation tax on its profits. Though in my experience most contractors that I know of don't have any significant profits to pay corporation tax. The bulk of the turn-over is usually paid as wages and the remainder goes into a pension. There is also a surcharge in Ireland for leaving undistributed income in a services company. Also beware that there has been a significant clampdown by the Irish Revenue on contractor Ltd. companies over the last few years. This has mainly focused on travel expenses.
For that reason most Irish contractors with Irish Ltd. companies that take contracts overseas no longer do so through their Irish Ltd. company.

Rugbyboy is right, the Revenue here will bleed you dry.

Can we stay clear of terminology such as 'bleed you dry' unless you have the facts and comparisons to back them up...