IR35 versus irish setup

C

Chas

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I've broached the subject of IR35 before but cannot find my posts either on google or aam searches.

I am resident and taxed in the UK. I am an IT contractor using an Umbrella company and my accountant is working on the basis I am outside of IR35. I have an Irish passport. My family are moving to Ireland next week. I will be traveling over and back to work in the UK. I will still own my house in UK. I work shifts which means I work 14 days out 28. So doing a few quick sums I think that will mean I will be working in the UK for approx 160 days but would probably physically in UK for over 200 days. Hope that is enough background! (Oh I'm 6 foot 2 and 15 stone)!!!

I read somewhere that Ireland treated IT contractors the best in terms of bottom line take home pay compared to UK. Clearly there would be a lot to consider in making a decision to move my tax affairs to Ireland but some pointers would be nice.

Thanks

Chas

PS My cousin says put £100 on Donegal to reach the All Ireland final - what are the chances and what are the odds?
 
Hi Chas

IR35: is that the directive about freelance or sole traders being liable for employer-side 'nation insurance contributions' or not ?
('nation insurance contributions' in Irish is 'pay-related social security' or PRSI )

Besides that invaluable scrap, I can't help you, but there are some frequent-posting accountants on 'ask about money' who seem pretty good to me, might be worth contacting them.

Let us know how you get on!
 
I worked in the UK around the time of implementation of IR35

If you are a one-man-band IT contractor I would be surprised if you fall outside the scope of IR35

A lot of practicioners do not fully understand IR35 and its scope so make sure you accountant is certain that you are not covered by it and get it in writing from him

Generally, you probably would be better off in Ireland
It would depend on your situation, when you draw salary, how much you draw etc
That said there is advantages and disadvantages to the irish system for service companies

It also depends on certain facts as to whether you are resident in the UK or Ireland or where your company is resident

Start as I said with your accountant as I said above
If you get in writing that you are caught by IR35, no problem
If cannot then maybe look at different options

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You won't really have a choice as to where your tax residency is. Under the UK/irish double tax treaty if you are resident of both countries then you will be deemed resident where your permanent home is. As your family are now located in ireland you would be deemed to be tax resident here.
You should clarify this with your accountant. It would be easy to stay out of the irish tax net because you are being paid by UK companies through a UK umbrella company but this might cause you problems down the road if you are locating permanently in ireland.
 
On this topic

I am the opposite of the original poster.
I want to remain tax resident in Ireland but contract in UK for short periods of 3 months
I have an Irish LTD company. Do I fall under IR35?
DO I need to contribute anything to the UK system
Or would I continue to pay Corp Tax Prsi and Paye here
Would I receive any exemptions for being an employee overseas for so many consecutive days

Apologies if this has been answered elsewhere
 
Re: On this topic

You will be a proprietary director of your ltd company.
The company will invoice for your services.

You then can get the money out of the company as an employee or a shareholder. Most tax efficient is to pay yourself a salary.
IR35 is not relevant. No exemptions from irish tax for working in UK in this situation.
 
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I read somewhere that Ireland treated IT contractors the best in terms of bottom line take home pay compared to UK. Clearly there would be a lot to consider in making a decision to move my tax affairs to Ireland but some pointers would be nice.

The question is whether you be employed or self-employed. Whether you are working through a ltd company isn't the only factor to consider. The Irish Revenue will utimately determine your status. If you are working for the same company all year, like an employee of that company, you'll probably be deemed 'employed'. Of course, It might never happen.

(BTW, think it through before moving to Ireland. If Irish contractors get more money, it's because everything is really expensive. We are also undergoing a transition to 'Nanny state', and there's no transport system. I'm getting out as soon as I can.)
 
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