Living in Ireland but working in UK - TAX?

[irishstu]

Hi everyone - I have recently been offered a position with a UK based company but would commute from Ireland. How do I ensure my tax payment runs smoothly? I have read posts stating no double taxation etc. but what is the mechanism? Do I contact Revenue or submit a form or do I need a UK tax cert?

Any help would be greatly appreciated on this - I do not want to face tax avoidance issues.

Many thanks,
IS

 

[Domo]

This is a complex situation, for both you and the employer.

If you work full time in the UK, and carry out no duties of employment in Ireland, your employer will operate UK PAYE/PRSI and NIC on your earnings.

If you carry out some duties in Ireland your employer may well be liable to operate Irish PAYE/PRSI on a proportion of your salary.

However, if you are Irish resident (which I would assume you will remain), you will be taxable in Ireland on your worldwide income irrespective of where you carry out the duties. If you fulfil certain conditions you may be entitled to Trans-Border relief, but will need to file Irish tax returns each year to claim either Trans-Border relief or Foreign Tax credits.

The double tax agreement will ensure that you do not pay double tax, but you will end up paying the liability that is the highest in either UK or Ireland.

www.taxingtimes.ie