Working in the UK

[gw34]

Hi,
My query is similar to earlier thread ' Based in Ire, UK client' except I would be in the UK for more than 91days in the year.


I would be working in the UK on a 12 month contract and invoicing through an Irish Limited company ( they only deal with limited companies- not self employed) If I set up an Irish Limited company and pay PAYE & VAT in Ire for the work in the UK, would I also have to pay income tax and VAT in the UK ? If so, would there be a refund from the Irish Revenue for taxes paid in Ireland and would this take long to be refunded ?
I'd be grateful for any advice on this.

 

[Domo]

You are likely to be UK tax resident and liable to operate UK paye income on your salary from the Irish company.

To avoid Irish PAYE you would need to apply for an exclusion order, but I understand that these are not given as a matter of course to a proprietory director of a company.

Therefore you would have top operate Irish and UK PAYE on your salary.

If the management and control of the Irish company is in the UK (likely to be if you are resident there), the Irish company could become resident in the UK and have Corporate Tax issues, and permanent establishment issues.

If you are going to be there fore 12 months it may be worth looking into setting up a UK company for this contract - but, be aware there are special rules for UK companies providing sevices of a contractor (IR35 rules).

If you do that, be also aware that you may remain tax resident in Ireland also, and be liable to tax in Ireland on the UK earnings, but get a credit in Ireland for the UK tax paid.

This is a complex issue and you should get professional advice.

www.taxingtimes.ie