# Irish employee of UK company



## Malcor (16 Feb 2011)

Hi folks, hope you can help clarify my situation!

Starting with UK company as their Irish sales rep next month.  Will be working from home office, have agreed a base salary, and they are providing a company car.  As I've always been a PAYE employee of Irish companies I never gave tax a second thought, just presumed it would be looked after by my new employer.  They've just informed me that they will be paying me a gross salary and I have to look after my own tax affairs, and I don't know where to start.

It's a permanent salaried position, so it's not a contract-type employment.  I'm not self-employed, and I'm not a director/consultant.  The long term plan is to open an Irish office but this could be 2/3/4 years off.

What are the pros/cons to this arrangement?  Can I claim expenses such as electricity/broadband/phone for home office? Do I pay less PRSI?  And does this then raise issues if job doesn't work out re dole?

Any help/advice would be greatly appreciated!

M.


----------



## CARRIE.B (17 Feb 2011)

I wonder could you use an umbrella company in the UK and let them sort out your paye there and perhaps take into account expenses utilised through work also


----------



## Petermack (17 Feb 2011)

CARRIE.B said:


> I wonder could you use an umbrella company in the UK and let them sort out your paye there and perhaps take into account expenses utilised through work also


 
Umbrella companies will only represent people on contract work. From the info supplied by the Op he is a permanent employee. I think the easiest thing to do is contact Revenue and ask for their advice


----------



## Malcor (18 Feb 2011)

Thanks Carrie, Peter,

Revenue are telling me I can't be self-assessed and be a permanent employee of a UK company.  I either have to be classed as self-employed, or the UK company have to register in Ireland or use an Irish payroll company.

The recruitment agency I dealt with say the opposite, and they have lots of experience of this situation, as I thought they would.  There must be hundreds of people like this.  They say I can register for self-assessment, hand over my 12 payslips, petrol receipts, and any other expenses at the end of the year and be taxed accordingly.

I think the issue is Revenue looking for the employer contribution to PRSI, but I don't know how that affects me or the tax I pay.


----------



## DB74 (18 Feb 2011)

You don't need to register as self-employed.

The UK company needs to register a branch address in Ireland using Form F12

[broken link removed]

http://www.cro.ie/ena/forms_f_to_h.aspx

They also need to register as an employer in Ireland using Form TR2 and pay your wages through the Irish PAYE system.

http://www.revenue.ie/en/tax/vat/forms/formtr2.pdf

You are then paid as a normal Irish employee with Class A PRSI contributions etc etc

The UK company must file a copy of their annual accounts with the CRO every year attached to a Form F7 (see link above)

It seems like a lot of work but once the set-up is done there is very little work really. Any accountant should be more than willing to set it all up for you and allow their address to be used as the registered address in Ireland (for a fee obviously)

I've done this for 3 different UK companies with sales reps in Ireland with no problems at all.


----------



## collu123 (30 Mar 2015)

DB74 said:


> You don't need to register as self-employed.
> 
> The UK company needs to register a branch address in Ireland using Form F12
> 
> ...


Hi,
Is there a way to contact you about this issue? Thanks,


----------

