Irish resident employed by UK company

M

mrblue

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I am looking for some referrals to an account that has dealt with similar scenarios.

I have been living in the uk and working for a UK company for their UK clients the past 10 years, it is an IT role, working on systems in the UK remotely, I am on the payroll as an employee and continue to pay tax in the UK..

I moved back home to Ireland as a result of covid temporarily however they have agreed to make this permeant. I will rarely have to travel to UK for work.

I would love to hear from people who are in a similar situation and have an accountant that they can refer me to, I believe that I have to complete self assessment and will receive credit for the foreign tax paid against irish tax that will be due. An indication of accountant costs would be very helpful also.

Thank you.
 
Just to confirm, you're on the company payroll?

If so, your employer will need to register here as an employer, and submit payroll taxes to Revenue. You'll start paying Irish PRSI rather than NI in UK.
 
Yes - what you've described isn't legal. You couldn't be a consultant and take care of your own taxes because you wouldn't meet the test in either country, you can't be a cross-border worker in the way someone living in the republic and working in Northern Ireland might be, off-setting taxes paid in the UK against taxes due in Ireland because the work will be done in Ireland, not the UK.

You have two options: you can get the company to register as an Irish employer which isn't as onerous as it sounds, if they have a payroll/finance department and are big enough it should be relatively straightforward for them. The other , more straightforward, option is there are companies that do the logistical part for you: so basically you would tell your company the details, they've basically payroll companies and they will sort the payments and tax obligations. We looked into this a few years ago and spoke to a friend using one of these companies, I can't remember the name. Its not an accountant you would need, its a payroll company: I'd say google will give you a few people to talk to.
 
Thank you, yes I am on their payroll.

Oddly enough that is not what I was told by the revenue commissioners before I got the ok work from Ireland by the company,unfortunately that a good few moths ago so I don't remember the exact details, something to do with the double taxation treaty and being a virtual worker and recommended that I speak with an account that deals with similar scenarios.
 
There were temporary measures put in place to avoid forcing companies to register where people relocated temporarily due to Covid.

COVID-19 information

Information about the supports and measures that have been introduced to help taxpayers during the COVID-19 pandemic.
www.revenue.ie www.revenue.ie

" Foreign Employments - Operation of PAYE
Revenue will not seek to enforce Irish payroll obligations for foreign employers in genuine cases where an employee was working abroad for a foreign entity prior to COVID-19 but relocates temporarily to the State during the COVID-19 period and performs duties for his or her foreign employer while in the State.

This measure only provides for a temporary relaxation on the employer’s obligation to operate PAYE. It does not provide any concession regarding the underlying income tax liability that the individual may have regarding either

the tax liability
or
the filing obligations
of the individual.

This concessionary measure will cease to apply on 31 December 2020. From 1 January 2021 employers are required to operate PAYE on such employments in the usual manner. This is subject to any exceptions set out in Tax and Duty Manual Part 42-04-65."
 
Thanks RedOnion, the advise I got from revenue was before Covid. I managed to dig up my notes from the calls I had, this was the advise given.

Considered as a virtual worker for UK company working on UK projects, duties are outside of state.
File tax return detailing what tax was paid in UK with proof (P60)
Revenue to calculate tax liability based on what I would have paid on income if I had been employed here, deduct tax aid in the UK (double taxation agreement), I pay the balance to revenue.
Paying National Insurance in the UK, do not have to pay PRSI or health Levy.

I will try to get in touch with revenue again to confirm these this week. Going to try and speak to a tax specialist also.
 
As RedOnion has confirmed, those measures were temporary to 31 Dec 2020. After that date your employer should register as an employer in Ireland and pay your taxes here. This was always the case but due to COVID there was some relaxation of measures.
 
Hi mrblue, sorry to resurrect an old thread. I've found myself in the exact same situation as you. I too spoke with revenue when I moved back to Ireland and they told me exact same thing, just carry on as you are and submit a self assessment with ros.ie every year. However I was getting a hefty PRSI bill on my From 11 so yesterday I called them back and they directed me to the dept of social services, who told me that what revenue said is wrong - my company needs to set up an Irish payroll for me. I'd rather not go down that road, as my employer will likely not want the hassle, and instead ask me to work as a contractor, thus loosing all my benefits. Can you tell me what you did in end?
 
masterb said:
Hi mrblue, sorry to resurrect an old thread. I've found myself in the exact same situation as you. I too spoke with revenue when I moved back to Ireland and they told me exact same thing, just carry on as you are and submit a self assessment with ros.ie every year. However I was getting a hefty PRSI bill on my From 11 so yesterday I called them back and they directed me to the dept of social services, who told me that what revenue said is wrong - my company needs to set up an Irish payroll for me. I'd rather not go down that road, as my employer will likely not want the hassle, and instead ask me to work as a contractor, thus loosing all my benefits. Can you tell me what you did in end?
Click to expand...
Hi to both mrblue and masterb. Any update on this? My I am also in this position with what seems like my only option to follow the root of registering as a ltd company. This makes them concerned about the effect of IR35 which is a complete mess. Any assistance would be appreciated.
 
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