Moving to Ireland, Working in the UK and Irish State Pension.

[Mike Fish]

Apologies if this has been covered somewhere else, but I've not found an answer.

My situation, my mother was born in Ireland and I have Irish citizenship. I'm 50 and plan to move to the west of Ireland in the next year or so (to do up a property for retirement whilst I'm healthy enough to do it). I doubt I'll be able to find work in my field so I'll do Knock to UK and work 2 day a week and the rest of the time WFH. This will be a normal job for a UK company. Obviously I'll have to do taxes in both countries etc. and the double taxation treaty sort out the issues. My NI will be paid in the UK.

Right to the question, I would like to build up a state pension in Ireland as a bit of insurance. I was thinking of setting up a company in Ireland and doing a bit of consultancy on top, I wouldn't be able to do much but I should be able to pull in the €5000 pa and pay the €500 in S class contributions for 5 years then do 5 years of voluntary contributions of €253 (current pricing). Obviously if I can get a job in Ireland, then great, but in the absence of a local job does this seem like a feasible plan to get the 520 minimum contributions? Or have missed something?

Thanks in advance.

 

[jpd]

By the time you retire, they will have moved to Total contribution basis but you will get a small Irish pension

 

[gipimann]

Someone posted on here, they had moved to work in the UK, and wanted to make voluntary contributions to maintain their prsi record for Irish pension. They were advised that they couldn't pay voluntary contributions here while contributing to the UK National insurance system.
I'd check your plan very thoroughly to avoid a shock or disappointment in a few years time.

 

[Mike Fish]

Yes, I assumed that is would be the 10-14 years of contributions giving approximately a 1/4 pension however what I don't know is whether what I've asked is true i.e. that I could do a bit of self-employment with an Irish business for 5 years then 5 years of voluntary contributions (to meet the minimum of 520 weeks). The Irish system seems to have a myriad of different contribution classes compared to the UK (and that's with some having to be of a certain class).

 

[gipimann]

For reference, here's the thread I referred to -

Not allowed to contribute to Irish State Pension while living in the UK

I have just had a letter from Dept. Social Protection stating that I am not permitted to contribute to my Irish Pension while living in the UK as they say I am covered by social insurance in another EU country, but the UK is no longer a member of the EU, and I was under the impression that I...

www.askaboutmoney.com

 

[Mike Fish]

@gipimann Thank you that's an interesting point and an interesting post. However that person was in the UK and wanted to pay voluntary contributions in Ireland. I would want to be resident in Ireland and pay in Ireland (whilst working in the UK).

Also, how would that work for someone with a job in both countries. I can't imagine them not taking social security contributions in both countries. Obviously you can't do the voluntary contributions until 260 weeks of working contributions made hence my suggestion to do some self-employment for 5 years before doing voluntary contributions.

[Apologies for the delay in posting, I assume, as a new account there's a enforced posting gap]

 

[Dr Strangelove]

From memory you are allowed to pay social insurance in both jurisdictions if employed/self-employed in both.

This does not qualify you for simultaneous working age benefits from both, for example illness benefit. There is some rule about which predominates.

However you are allowed to accrue pension benefits simultaneously. So at retirement age you can draw as much of each pension as you are entitled to.

Be careful with tax residence as well - both for income tax and capital gains on any property you might have.

 

[Dr Strangelove]

To follow up on my previous post there is a UK-Ireland convention on social security, see here.

Article 9 basically says that you can only benefit from either UK or Ireland benefits except for pension or benefits related to occupational accidents.

Article 11 specifies where you can claim
unemployment or illness benefit (it’s complicated).

Read the Convention above carefully. I have queried DSP on aspects of it in the past and have not got straight answers

Otherwise I have read threads on this topic for many years and have noticed:
1) I have never heard of a case of HMRC or Revenue turning down NI or PRSI payments respectively. I doubt Revenue will audit you on the suspicion you’ve paid too much tax;
2) Lots of people are claiming full or part pensions from both UK and Ireland up to eligibility.

Best of luck with this plan - you’ve thought it out very carefully and I hope it goes well for you.

 

[Mike Fish]

To follow up on my previous post there is a UK-Ireland convention on social security.

Article 9 basically says that you can only benefit from either UK or Ireland benefits except for pension or benefits related to occupational accidents.

Article 11 specifies where you can claim
unemployment or illness benefit (it’s complicated).

Read the Convention above carefully. I have queried DSP on aspects of it in the past and have not got straight answers

Otherwise I have read threads on this topic for many years and have noticed:
1) I have never heard of a case of HMRC or Revenue turning down NI or PRSI payments respectively. I doubt Revenue will audit you on the suspicion you’ve paid too much tax;
2) Lots of people are claiming full or part pensions from both UK and Ireland up to eligibility.

Best of luck with this plan - you’ve thought it out very carefully and I hope it goes well for you.

Thank you, that's very useful.