# Irish Company Trading in UK



## HMCE (26 Aug 2009)

I am about to get a IT Contract in London, I am hoping to get paid in GBP because I could make when the GBP becomes stronger and then I will convert to Euro

I have an Irish Company with a EURO company account........ My Qs are as follows:
1. Can I use the Irish company to receive invioce payments from the London contract
2. Can I setup another account but in GBP with the Irish Company Bank
3. Can I pay my taxes in Ireland in GBP on all earnings from the UK

If no is the answer to any of the Qs above how can I work around the issue? Thank you all


----------



## bluemac (26 Aug 2009)

Not going to answer your question.. but offer another option.
PAY your tax in the UK is so much cheaper.
Set up a limitd company there about £200
do accounts there each year about £600
as a director pay your self a very small wage under the tx threshold pay you very samll National insurance contribution... we are taling about £100 tax

then pay your self a dividend of profits at the end of each year. (you dont pay NI or employers ni on this money just a flat rate of tax at I think it was 20%

so on earnings of £60k you may pay about £13,000 in tax/ni in ireland on the same earnings €90k (old exchange rate) you pay €28,000 or there abouts old (tax rates)

no brainer if you can... clouders accountants in southend on sea will put u straight

on answers to your questions
1. yes.. very easy but vat office here makes you fill in addtional trading forms and get mad if you dont.. there easy but a pain.
2. yes you can bank of ireland do this i have one then you use traders to exchange sterling into euros and get good rates.
3. not sure but doubt it very much as i explained pay it in the uk if you can...


----------



## HMCE (26 Aug 2009)

Thank you for the reply Bluemac, just a few comments on your replies
--------------------------------------------------------------------
_PAY your tax in the UK is so much cheaper.
Set up a limitd company there about £200
do accounts there each year about £600,_ 

_*Issue is I also have an Irish company and it costs about 600Euro even when no business has taken place for the tax year, I can only work in one country at a time, so I'd like to keep the Irish company and work in UK if I get the opportunity which is not as often as Dublin*_

But you still make a good arguement, and I can see how setting up a company in the UK would be the better option for the sake of 200 GBP one could close the company to avoid cost going forward and setup another on each contract one gets........


----------



## jt_dublin (26 Aug 2009)

The UK inland revenue clamped down on the dividend of profits options about 10 years, espcecially for IT Contractors, so I dont think that you will be able to go that route. See the following:

*IR35 - overview of the IR35 tax rules*

IR35 first reared its head via an Inland Revenue press release in 1999 entitled: ‘IR35: Countering Avoidance in the Provision of Personal Services”.
 “The purpose of the new rules is to remove opportunities for the avoidance of tax and Class 1 National Insurance Contributions (NICs) by the use of intermediaries, such as service companies or partnerships, in circumstances where an individual worker would otherwise be an employee of the client or the income would be income from an office held by the worker.”
 IR35 became law via Schedule 12 of the Finance Act 2000 – its prime aim was to ensure individuals working via limited companies would be subject to the same taxation laws as an individual performing the same task under standard PAYE conditions.
 The IR35 rules were invented primarily to stop freelancers (particularly IT contractors) from drawing income in the form of a small salary and large dividends from their limited companies, where ordinarily they would be paid a standard salary for performing the same role if they were not working via their own limited company.
 In determining whether a person’s employment is deemed to be subject to the IR35 rules or not, the Inland Revenue would need to work out if that person is ‘employed’ or ‘self employed’ according to the IR35 rules.
 A person who worked 9-5 on a client site, had little or no direct responsibility and provided no tools of his own to complete a task would most likely be deemed as ‘employed’ and therefore subject to the IR35 rules. However, a contractor who worked from home, performed tasks for multiple clients and used his own equipment to complete the work would more likely be deemed ‘self employed’ under the rules. The Revenue would look at the overall picture to determine a person’s employment status, so the more pointers there are to genuine ‘self employment’ the better.
 The Inland Revenue leaflet - , 'Employed or Self Employed’ has been provided to help people work out if they will be liable to IR35 or not.


----------



## HMCE (27 Aug 2009)

Regarding IR35, as far as I am aware having worked in the UK back in 2004, I choose on the advice of my Accountant to go non IR35. I had setup a Limited Company and worked completely Self Employed for a Financial institution for 5 months only. Apparently one can have the company they are going to contract with alter or adjust the contract so that it reads as a NON IR35 contract and therefore IR35 does not apply and one can take advantage of the dividends option with small salary. Any opinions on this?


----------

