UK Contracting

UK LTD Company in Ireland

The duration of a contract is a key factor in determining the tax obligations and duties of a UK LTD Company when operating in Ireland.

Where a contract is < 30 days, there is no requirement for the UK LTD Company or individual to operate PAYE in Ireland.

Where a contract is > 30 days and < 60 days there is no requirement to operate Irish PAYE provided all the below criteria are met:

1. Employee resident in Double Taxation Agreement (DTA) State and not resident in Ireland;
2. Genuine “foreign employment”;
3. Individual not paid by an Irish Permanent
   
   Establishment (PE);
    
4. Duties performed in Ireland ≤ 60 days.
   Where a contract is > 60 days but less the 183 days, the conditions become more complex for the exemption of operating PAYE in Ireland.

In cases where all the below conditions are meet, a UK LTD Company is exempt from operating PAYE while contracting in Ireland.

1. Employee resident in Double Taxation Agreement (DTA) State and not resident in Ireland;
2. Genuine “foreign employment”;
3. Individual not paid by an Irish Permanent Establishment (PE);
4. The UK LTD company has registered in Ireland as an employer for PAYE
   
   AND
    
5. Maintains a record of the full name, latest Irish and overseas address, date of commencement and cessation of individual, location where individual carries out duties of temporary assignment and amount of earnings in relation to temporary assignment
   
   AND
    
6.  Signs a written acknowledgement that in all cases where a liability is subsequently found to arise that they will pay any Irish PAYE that should have been paid
   
   AND
    
7. Supplies evidence (e.g. payslip/ statement from HM Revenue & Customs) of PAYE being operated in the UK on the duties performed in Ireland
   
   AND
    
8.  On request, supplies a copy of the contract relating to the employer’s engagement in Ireland;
   
   AND
    
9.  Seeks clearance from Irish Revenue Commissioners by 21 days after the date the Contractor takes up the duties in Ireland.

On receipt of written confirmation from the Revenue Commissioners, Irish PAYE need not be operated.

If the above conditions are not met, the UK LTD Company should apply Irish PAYE by reference to the duties performed in Ireland but should review the position after the end of the tax year to see if a refund is available under the relevant DTA.

Where a contract is >183 days the UK LTD company must apply Irish PAYE by reference to duties performed in Ireland.

183 Day Rule 

The 183 Day Rule relates to Tax Residency. 

Under the Irish jurisdiction, any UK Company operating in Ireland for over 60 days has an obligation to register as an employer in Ireland. 

The UK LTD Company is obliged to register as an employer in Ireland – If not operating Irish PAYE, an exemption from the Irish Revenue Commissioners should be sought to confirm the same. 

Where a UK Company is operating in Ireland full time (183 + days) and the UK Contractor is based in Ireland, there is a possibility that both the Contractor and the UK Company become tax resident in Ireland after 183 days. 

As a result, both the contractor and UK Company are subject to all Irish tax and no longer UK Tax. 

Other factors such as the number of days that a contractor is in Ireland, and the direction/control of the Company, alongside Contractors travel patterns are all taken into consideration in the determining the residency of the LTD company and individual. 

Irish Tax System 

The Irish tax year runs from 1 January to 31 December.

From January 2019 PAYE Modernisation is the new method in which reporting pay, tax and other deductions must be submitted to Revenue by a new real time reporting regime.

PAYE Modernisation abolishes the reporting obligations for P30s, P45s, P46s, P35s and the generation of P60s.

From January 2019, Revenue require everyone to hold an online Revenue Account. To set up your account simply follow the link https://www.ros.ie/myaccount-web/register.html?execution=e1s1

Tax Bands  

Irish PPS Number 

A Personal Public Service Number (PPS Number) is a unique reference number that helps you access social welfare benefits and public services. It is imperative to hold a PPS Number in order to process your payroll through the Irish PAYE system.

The Department of Social Protection can provide you with a PPS Number once you arrive in Ireland.  However, prior to your arrival, you will need to book an appointment at your nearest Social Welfare Office so you can apply for your PPS Number.

To arrange this appointment, please log on to  http://www.welfare.ie 

Once your PPS number is issued you must register an online Revenue Account. 

https://www.revenue.ie/en/online-services/services/register-for-an-online-service/register-for-myaccount.aspx

Accommodation in Ireland 

Below are some of the most popular rental websites for securing accommodation in Ireland 

http://www.myhome.ie/rentals

http://www.daft.ie/lettings/

http://www.rent.ie/

www.airbnb.ie/

*If you are relocating for your Contract you can claim tax relief on the first 3 months accommodation costs.