Working in the UK

C

chippie

Guest
Hi there
I am about to start work in the uk. I will be spending 3/4 days a week in the uk and will work from home for the remaining 2/3 days.
Can anybody tell me how the tax system works. Will deductions be similar or more than here?
A company car will form part of the package as will vouched expenses.
 
This is a complex situation if you remain resident in Ireland, and work part in Ireland and part in the UK.

The UK company has to operate UK PAYE on your salary, and also has an obligation to operate Irish PAYE as well.

You need to confirm where you are tax resident - you may actually be tax resident in both countries.
 
Hi There,
Can anyone advise on my situation:
My Husband works in Northern Ireland he pays his tax there, we live in the South I work & pay my taxes here. He earned 22Kstg I earned 55K. I am taxed as a single person & we have 2 children. Can I avail of his tax credits? Any advice would be greatly appreciated.
 
Hello,
I have a similar situation as 'Spring09'. I have just start work in Northern Ireland (part time position) while my husband works in the Republic. For the last 4 years we were both working in ROI and all tax credits were transfered into my husband (as he is earning more than I). We were taxed as a married couple. Is there any legal way to keep tax credits as it was and not be taxed as a single person? Thank you in advance for any advice.
 
The spouse working in the Republic may claim the full married persons allowance and double rate bands, but will then not pay enough tax to cover the other spouse's tax liability in Ireland.

The Northern Ireland income needs to be declared on a tax return each year, and the liability arising is based on a formula, and must be self assessed and Preliminary Tax needs to be paid as required.

By claiming only single tax credits and rate bands this should cover the liability, and in fact a tax refund may be due.

However, tax returns do need to be completed to be tax compliant in Ireland.

Pm me if you need help with your tax returns.
 
Hello Domo,
Thank you for reply.
I was wondering if seting up a private business here in ROI and sending invoices to NI company for a service I'm going to provide would not sort the tax issues? I'm not familiar with expenses which I would have as a self-employed person. Do you think such a solution would work for me better from financial/ economical point of view?
Thanx,
Gosia
 
That could complicate things even more.

Assuming you are resident in the UK for tax purposes - You will be taxable in the UK on your self-employment and have to file tax returns and accounts.

Even as a non-resident as self employment carried out in the UK you would still be taxable there.

You would also be taxable in Ireland and have to prepare accounts for the different tax year. (Therefore 2 sets of accounts and tax returns - whereas under PAYE you would only have Irish tax return to complete).

You would get relief under the double tax treaty - but in my view it would be simpler to operate under PAYE.

Setting up a company would cause other tax issues that would be complex, and you would be an employee of the company anyway.

Without any more detail about your situation, I think the PAYE would be the best route - it would be simpler at the very least. The other routes would complicate matters, and cost you a lot more in fees for accounts preparation, and tax return complications.

Tax planning could be cost effective if the amounts involved were substantial enough - but for a part time employment type of income, I would not imagine this to be the case.
 
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