Living here - working for the UK

[mostly]

Hi,

Yesterday I was offered a role from a UK company. I live in Ireland and I am Irish. The role will allow me to work from home here in Ireland.

Last week I began the process of setting myself up as a sole trader (before I knew I had this role) and registering for VAT as I expected my annual turnover to exceed the threshold of 37.5k limit. This has not finalised yet

My new employer has not stated how I will be paid yet. Contracts are yet to be drawn up. My question is how the tax system will work.

Having never worked for a UK company I am unsure if they will pay the tax for me and I receive a net amount? Or do I still pay tax in Ireland? Or would the easiest option to go down the route of working as a contractor for them (if they will allow it) and invoice them and pay tax and vat as a sole trader?

As mentioned above I have not discussed my options yet with my new employer. I would like to be sure of my facts before I do so

Thank you

 

[dublin66]

The proper response is that your UK employer is required to register for PAYE and make deductions exactly like an Irish employer would. In practice it may be different.

Remember that the advantage of being an employee is that you will get social welfare benefits if you are an employee on a normal class A contribution. This requires your employer to make a contribution of 10.75% (on a standard salary) PRSI - it is a very similar rate to the UK.