Tax on UK company profits

Good morning all, not sure thus has been covered (I certainly couldn't find anything).

I am expecting a job offer from a company in the UK which is an Employee Owned Trust and part of the offer will be a share in profits. They're looking into how this would work from their side but from my point of view, how would I pay tax on the profit share as an Irish tax resident?

My understanding was threat in order to employ me, they would effectivity have to set up an Irish branch to process PRSI etc, if this were the case would profits from the UK company be taxed as personal income??

Where are the duties of the employment to be performed? Are you actually working in Ireland on behalf of the UK employer (e.g. as their Irish sales rep, or running their Dublin office) or will you be commuting to the UK to do a UK-based job?

Either way, the profit-share bonus paid to you by the Employee Ownership Trust, although tax-free in the UK, will be taxable in Ireland as an emolument of your employment. But the mechanism for collecting this tax might vary depending on whether this is an Irish employment or a UK employment.

Hi, big point I omitted there! I would be based here working remotely supporting projects/ clients in the UK.

There will almost certainly be some clients in Ireland but these will be for a short duration (one off projects) - I would be an employee of the UK company who may occasionally have an Irish client rather than the head of an Irish branch etc.

Sounds like there are a few swings in this arrangement that might have big impacts on my net income - who might be best to advise on this: a financial advisor, accountant, someone else??

Thanks in advance.

OK, the position here will be, I think, that you will pay UK tax, national insurance, etc in the usual way — the employer will deduct it. The profit-share bonus from the EOT will be paid without deduction of tax, since it's tax-free in the UK.

You're liable to Irish tax on your income from the employment (including the profit-share bonus) but you get a full credit for the UK tax you have paid. You submit a tax return each year and pay whatever amount is due.

TomEdison said:

OK, the position here will be, I think, that you will pay UK tax, national insurance, etc in the usual way — the employer will deduct it. The profit-share bonus from the EOT will be paid without deduction of tax, since it's tax-free in the UK.

You're liable to Irish tax on your income from the employment (including the profit-share bonus) but you get a full credit for the UK tax you have paid. You submit a tax return each year and pay whatever amount is due.

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Not sure about this, as the OP seems to have indicated they will be working remotely from Ireland, for the UK employer.

upupup said:

I would be based here working remotely supporting projects/ clients in the UK.

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torblednam said:

Not sure about this, as the OP seems to have indicated they will be working remotely from Ireland, for the UK employer.

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So will the UK employer have to register in Ireland and deduct Irish tax and social insurance?

TomEdison said:

will the UK employer have to register in Ireland and deduct Irish tax and social insurance?

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I don't see how they wouldn't, in the circumstances as outlined - if an employee is performing substantially all of their duties here, you'll have to operate Irish tax, as I understand it.

Thanks all, the employer is getting advice on their end in order to progress - it seems this is the only thing blocking an offer but I need to know the details to determine how an offer in £stg translates to a net €uro amount.