Tax implications of working for UK company

S

stevep

Guest
Hi,

I am considering a job based in the UK but my home and family is here in Ireland. If I was to take a salaried role based at a UK company with three days at the London office and worked from home for two days and my salary was paid into a UK bank account what are the tax implications? They would essential consider me a standard UK employee and would assume I was working from home at a UK address. Would the company have any Irish PRSI obligations or would it be just down to me to file a tax return here (assuming I am tax resident in Ireland due to the number of days I am here) and pay any additional income tax after double taxation rules are applied?

Also how would this affect things such as Mortgage interest relief on my home here?

Thanks for any advice
 
As a UK employee your employer is obliged to operate UK PAYE and NIC.
As an Irish resident working 2 days a week in Ireland, the UK company is obliged to operate Irish PAYE on the relevant proportion of your salary.
This is a complex situation, and it is your employer's obligation to sort out.
They can not consider you a standard UK employee and assume you are working at a UK address - it is up to you to tell them that you are working in Ireland from home on the relevant days.

However, separate from the UK employer obligations, as you are Irish tax resident and UK tax resident, under the double tax treaty you are likely to be considered Irish resident, and not UK resident, and you have an obligation to file tax returns and pay correct taxes in each country - again this is complex.

I would suggest that you get professional advice

www.taxingtimes.ie
 
Domo said:
As a UK employee your employer is obliged to operate UK PAYE and NIC.
As an Irish resident working 2 days a week in Ireland, the UK company is obliged to operate Irish PAYE on the relevant proportion of your salary.
This is a complex situation, and it is your employer's obligation to sort out.
They can not consider you a standard UK employee and assume you are working at a UK address - it is up to you to tell them that you are working in Ireland from home on the relevant days.

However, separate from the UK employer obligations, as you are Irish tax resident and UK tax resident, under the double tax treaty you are likely to be considered Irish resident, and not UK resident, and you have an obligation to file tax returns and pay correct taxes in each country - again this is complex.

I would suggest that you get professional advice

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Thanks Domo (and for the other reply). If all of my work is for the UK employer and the two days at home is working exclusively on their UK business remotely (so there is no work done in Ireland related to Irish business) would they still need to operate PRSI here for me?
 
Yes, it doesn't matter what you work on, it's just the fact that you carry out work IN Ireland
 
Domo said:
Yes, it doesn't matter what you work on, it's just the fact that you carry out work IN Ireland
Click to expand...

Thanks. Sounds like it might be too complicated for the employer (I am the one requesting the two days to work from home) as they have no other staff employed here and would incur an extra admin burden to manage it. I guess I would have to just work there all five days during the week and come home at weekends instead :(
 
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