Working for and getting paid from a UK company, working from home in Ireland

I give up!!!! Virtual worker, schmirtual worker! How can physical location be irrelevant? It is key. Irish PAYE should definitely apply and Irish corporation tax could certainly apply. I don't need to call Revenue.
 
I have a business in Ireland, I have employees in the uk, so a bit the reverse. The advice of the uk revenue to me on how to treat them from a tax perspective surprised me. I expected to be told to register my business for tax purposes in the uk and pay employment taxes as usual through the paye method or that my uk employees should register in ireland and be taxed through the irish paye system and then file their annual returns in the uk and get allowance for taxes paid in ireland.

The advice of the uk revenue was that my uk staff be paid gross by means of a payment schemen ( new one on me) and that they should then pay their dues to the uk revenue.

Works for me, as I dont want the headaches of double paperwork.

Like most things there are probably a number of different ways to do what the original poster asked.
 
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There are a few options. One we looked into was get paid gross as a contractor and just declaring everything and paying all PRSI,Health Levy, Income Levy and PAYE at the end of the year, but we choose not to do this as it we wanted to make sure that her company was not inconvenienced in any way. they were doing her the favour by allowing her to work from Ireland.
We chose the option(after lots of advice) that she keeps paying UK tax as normal and declare an annual return in Ireland as a self-employed person.
The option you choose with a payment scheme was not one I am aware off but I can see how this would be beneficial to both the company and the individual.
It depends on the individual situation as to what is best, and what the company involved is prepared to do. It they want to set up an Irish payroll, then there is no issue.
dazzerb needs to choose the option that is best for them. But my refrain throughout this is to contact the revenue and take their advice.
 
I am in the same position. I work for a UK company but based as a field service engineer.
The option we chose was to use an irish payroll company to pay me each month under the irish tax system. I am still an employee of the UK company, but am covered under Irish employment law. the only thing that was hard to setup was the pension. but thats sorted now.
 
Opollo, your employer obviously got accurate tax advice and proceeded to make appropriate arrangements. That advice would have been, as I have been repeatedly stated, that they have an Irish PAYE exposure due to your activities here. There are 3 different ways that Non-Irish employers can meet these PAYE obligations - Register for Irish PAYE themselves, use the payroll of an Irish related company or use a payroll company. Your company has, like most non-Irish companies, chosen the latter option.

Lochy - this Irish PAYE exposure has not arisen due to them using an Irish payroll, this is the solution to the PAYE requirements that have arisen due to the poster having work duties here. The advice you have taken is incorrect.
 
Breninio said:
Lochy - this Irish PAYE exposure has not arisen due to them using an Irish payroll, this is the solution to the PAYE requirements that have arisen due to the poster having work duties here. The advice you have taken is incorrect.
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No it is not, I have taken advice both directly and indirectly from the following

1. UK Accountants and UK Tax lawyers indirectly through my wifes company
2. Revenue in ireland.
3. Accountants in Ireland.

I double checked this with my accountant this morning as you briefly had me worried. It is all above board and correct. If you feel you know more than accountants, tax lawyers and the revenue, then nothing I will say will change your mind.

My wifes work duties are not here, they are in the UK. I have been quite clear on this. She executes them from Ireland, but her duties remain in the UK and subject to UK laws such as UK freedom of information/money-laundering etc. This is the crucial point and one which revenue agrees with.

Finally, my wife does pay Irish PAYE, but she does it annually instead of monthly.
 

Yeah pension is a bit of a nightmare. I became the first Irish employee of a US company about 2 years ago, and finally got my pension sorted last month. I was a bit if a guinea-pig for them and a lot of things went wrong. I am making double payments for 2 years to catch up.
 
I agree with Breinio -

Your duties are carried out where you are physically situated. If you are physically in Ireland when doing work and if you are an employee of a foreign company, they should be operating Irish PAYE on your income. However, if they do not operate PAYE, that is the company issue - they are breaking the law

www.taxingtimes.ie
 

Fair enough if that is your opinion. Her company are a financial company in the city of London with offices in 17 countries. They have checked out their legal and tax position and they have no obligation to operate Irish PAYE. It was her decision to work from ireland, the company did not ask her to. I would think they have looked at all angles being an experienced multinational company.

Look, this was our accountants and revenues suggestion as to how she handles her tax. They want to see both P60's that cover the Irish tax year(the UK one being Apr-Apr). They calculate an exchange rate which is the average of the year. They are fully aware that she resides full time in Ireland. We have been extremely open with the revenue throughout this entire process. My wife pays the same tax as she would if she earned the money directly in Ireland, so we are not avoiding paying tax, we are just doing it annually.

I have the letter from revenue stating that she will have to fill in an annual tax return and they will discount all taxes paid in the UK through PAYE from her annual tax liability.
 
I don't want to be pedantic - but I have come across a similar situation recently -a large multi-national who had a guy working remotely in Ireland (a client of mine) - they thought they had the position all tied up - but were wrong!

However, I would say that these boards are fine for general guidance, but without knowing the FULL story, and all the back up documents and history, the advice you can give on boards is limited. I'm sure the company's advisors have boxes of documents and information before giving their final opinion (and charged accordingly).
 

Agreed. Her company has checked and double checked and got charged accordingly no doubt. One thing I have learned about tax is that there is never a one size fits all solution. I have always followed the advice of revenue, and although they can get it wrong at times, that has always seemed the best course of action
 
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