Uk domiciled/ Irish resident, UK and Irish salaries

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funcrusher

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My son is a software engineer and moved from UK to Ireland with his wife and family in late 2006, but continued to do the same work as an employee for the same large international company. Under Irish rules he is tax resident from lst Jan 2007. He and wife are UK domiciled. He mainly works electronically from home in Ireland, but spends 15% of his time at corporate HQ in UK and 15% installing IT projects all over the globe.

His contract is signed with UK HQ, but for payroll purposes only, he is treated as 'seconded' to their consumer marketing outfit in Ireland (with which he has zero contact) and thus receives the majority of his pay through the Irish PAYE system. The rest of his pay comes through UK PAYE from the HQ in the UK, principally to cover the company pension scheme.

His wife is a part-time nurse (irish paye) but will soon take a pregnancy break, possibly for a couple of years or more.

He's confused about how hthese two salaries will be taxed. Also apparently there is a 'Married couples tax credit' in Ireland, but the workings are not clear and also it seems non-domiciled persons may be excluded from it.

All advice on the tax aspect of their circumstances would be appreciated.
 
All his employment income is subject to irish income tax.

As an EU citizen and with his income fully taxable in ireland he is entitled to the same reliefs as any irish tax payer

His company should be sorting out his tax situation for him,he is entitled to tax relief for his contribitions to the company tax scheme so there will probably be no tax liability on the salary going into his pension scheme
 
Thanks Capall. One problem seems to be that the married tax credit is not allowed to the couple unless 'all their incomes are taxed in Ireland'. Hence surely this must mean Irish domiciled and Irish resident. Uk-domiciled Irish residents are of course not taxed in Ireland on income in third countries (eg interest or dividends) unless it is remitted to Ireland - so they fail the 'all income must be taxed in Ireland' test. Presumably Irish-domiciled married couples who are non-resident must also fail the test.

Like you, I would expect this to contravene EU law - but then many EU states are only too happy to flout the rules when it suits them.
 
This rule only applies when you are not resident in ireland .

It doesn't apply to your son who will be resident ,he will be entitled to the same allowances as any irish tax payer
 
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