Irish resident did temporary summer work in UK. Where does he pay tax ? Is my analysis correct ?

[mtk]

Hi folks,
This must arise a lot but cannot find an answer in AAM!
My student son worked and lived temporarily this summer 2022 in UK. He earned about £15k and paid about £2k tax.

Returned after summer and is now back here resident and doing internship here. Earnings will be about €8k from this for 2022. Paye tax paid will be zero.

I think !
1) He should be taxed on everything ( £15K +€8k) approximately €25k in Ireland ? I have tax due €1450 per pwc calculator.
2) Get credit in Ireland for UK tax paid ? so no tax extra due in ireland .
3) Overall result paid too much tax £2k less €1450 =€600 approx.
4) be able claim back excess tax £600 back from UK?

Is my analysis correct ? many thanks

 

[T McGibney]

Check how to claim a tax refund

Use this tool to find out what you need to do to get a tax refund (rebate) if you’ve paid too much Income Tax.

www.gov.uk

 

[mtk]

Check how to claim a tax refund

Use this tool to find out what you need to do to get a tax refund (rebate) if you’ve paid too much Income Tax.

www.gov.uk

thanks for that TG but firstly I was wondering if my analysis was correct?

 

[T McGibney]

thanks for that TG but firstly I was wondering if my analysis was correct?

More or less correct but Irish Revenue will have no interest in his UK employment income.

 

[mtk]

More or less correct but Irish Revenue will have no interest in his UK employment income.

Thanks
so basically ask uk revenue for tax back as only worked there for under 3 months ?

 

[NoRegretsCoyote]

More or less correct but Irish Revenue will have no interest in his UK employment income.

I was in a similar scenario many years ago. I moved for work from UK to Ireland in August so had only four months of a tax year in both jurisdictions (UK tax year starts in April).

I probably should have done the above but just reclaimed all the tax I could in both UK and Ireland and heard nothing every more from either HMRC or Revenue about it. It was very low thousands in both cases.

 

[T McGibney]

I probably should have done the above but just reclaimed all the tax I could in both UK and Ireland and heard nothing every more from either HMRC or Revenue about it. It was very low thousands in both cases.

No need. There is either a concession or a legislative provision that exempts a departing or returning employee who happens to be technically tax resident here from accounting for Irish tax on their foreign salary income if that is their only income. It was introduced in the 80s when emigration was endemic. I understand that other countries have similar and reciprocal arrangements.