Commuting to the North for part time work

I

itsme451

New Member
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7
Just looking for a sanity check here. I understand that income from work done abroad is subject to the other country's tax system in the same way as if I lived there full time, and that it only needs to be declared on an Irish tax return if transferred back to Ireland - correct me if I'm wrong please.

Does that mean that while working a normal Monday to Friday job in the Republic and paying normal Irish taxes on my earnings, I could do extra work on weekends in the North, and effectively pay no tax on those earnings because the UK has a large zero-rate band (£12570 per year), and I wouldn't reach that working one or two days a week? I would be happy to leave the money in the UK and pay course fees with it.

Seems both logical but too good to be true, so here I am. If this can be done, would it matter if the UK work was on a PAYE or a self employed basis?

I guess I'd need to keep train tickets or fuel receipts, to prove I really went north to do the work. And if self employed I'd need an accountant.
 
Thanks, but is that definitely the case for a job done while I'm in the UK, with the income from it staying in the UK? Article 15 of the double taxation treaty seems to say it wouldn't be, not unless some of the work was being done in the Republic.

Right Winger said:
No! You would be tax-resident here and liable for income tax (and PRSI and USC) on your worldwide earnings.
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itsme451 said:
Thanks, but is that definitely the case for a job done while I'm in the UK, with the income from it staying in the UK? Article 15 of the double taxation treaty seems to say it wouldn't be, not unless some of the work was being done in the Republic.
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I'd really love for you to be correct but I don't read it like that. I'm no tax law expert, but it seems to me that Article 15.1 says the UK can tax the income. Article 15.2 sets out conditions that, notwithstanding 15.1, need to be fulfilled in order to give Ireland exclusive taxing rights. You don't fulfil these anyway so Ireland doesn't have exclusive taxing rights. Article 15.3 isn't relevant. The article is silent as to whether Ireland can tax the income so presumably national law applies. Which says as an Irish resident you're liable to Irish tax on your worldwide earnings. So you're liable to tax in both jurisdictions. You will of course get a credit for tax paid in the UK to set against your Irish tax bill by virtue of the double taxation provisions of the treaty.
As I say, not an expert so open to correction by the tax people here.
 
itsme451 said:
As a foreigner who arrived here in September 2019, would this catch me as of January, or not until September 2022? As I posted a few weeks ago, I'm thinking of moving back to the UK.
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From your above post dated September 2021, it appears that you arrived in Ireland in September 2019 and are a UK-domiciled individual.

Assuming you have resided here since, it would mean that as of 2023, for Irish tax purposes, you are resident, ordinarily resident and non-domiciled.

As the poster above mentioned, a tax resident individual is liable to Irish income tax on their worldwide income.

However, in your case, as you are not Irish domiciled, you can benefit from the remittance basis of taxation.

Therefore, you are liable to Irish income tax on your Irish source income, foreign employment income to the extent that duties of the employment are performed in Ireland and other foreign income to the extent that it is remitted into Ireland.

If you are considering a genuine foreign employment outside the State, as a non-domicile, you can avail of the remittance basis of taxation and my assessment is that you would not be liable to income tax if the earnings are not remitted to Ireland.

Sources:
1. Paragraph 3.1 Part 05-01-21a The Remittance Basis of Assessment Tax & Duty Manual


"The income of a non-Irish sourced employment attributable to the performance outside the State of the duties of that employment, remains, where chargeable to tax in the State, chargeable to tax under Case III of Schedule D and the remittance basis of assessment is available on this portion of employment income."

2. Section 71(2) TCA: https://www.irishstatutebook.ie/eli/1997/act/39/section/71/enacted/en/html

"Subsection (1) shall not apply to any person who satisfies the Revenue Commissioners that he or she is not domiciled in the State."
 
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Looks like I got that one wrong then
Delighted to be corrected by the better informed and happy for the OP.
 
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