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Non GAA Discussion => General discussion => Topic started by: Tony Baloney on October 14, 2019, 07:10:12 PM

Title: Living in the North, Working in the South
Post by: Tony Baloney on October 14, 2019, 07:10:12 PM
Anyone on here travelling south over the border for work? I'm considering taking on contract work in the south and continuing to live in the north. I have been told a different story by 2 accountants about the tax burdens etc. whilst operating as "a company". Anyone got the actual FACTS on the most tax efficient means of operating or recommend an accountant who knows?! I would have thought this would be simple as I'm sure it's a well trodden path.
Title: Re: Living in the North, Working in the South
Post by: laoislad on October 14, 2019, 07:34:47 PM
Typical Nordies coming down here taking our jobs....
Title: Re: Living in the North, Working in the South
Post by: laoislad on October 14, 2019, 07:35:30 PM
Send Shamrock Shore a PM no better man to help.
Title: Re: Living in the North, Working in the South
Post by: Tony Baloney on October 14, 2019, 07:40:27 PM
Quote from: laoislad on October 14, 2019, 07:34:47 PM
Typical Nordies coming down here taking our jobs....
If youse start building a wall I'll be staying up here.
Title: Re: Living in the North, Working in the South
Post by: Milltown Row2 on October 14, 2019, 07:45:20 PM
Quote from: Tony Baloney on October 14, 2019, 07:10:12 PM
Anyone on here travelling south over the border for work? I'm considering taking on contract work in the south and continuing to live in the north. I have been told a different story by 2 accountants about the tax burdens etc. whilst operating as "a company". Anyone got the actual FACTS on the most tax efficient means of operating or recommend an accountant who knows?! I would have thought this would be simple as I'm sure it's a well trodden path.

A work colleague of mine did it, had a clinic in the north one in the south, paid tax through the company, as far as he was aware all good, ended up with a hefty tax bill that he had to pay straight away! Had no idea.

What was very lucrative at the start turned out to be pretty expensive in the end, must be a good few accounts on here, due how f**king boring the site has become  ;)
Title: Re: Living in the North, Working in the South
Post by: balladmaker on October 14, 2019, 07:49:22 PM
I'd assume that if you're based in the north, have income incoming from the south ... as you're tax resident in the north, you declare your southern income via your yearly self assessment tax return to HMRC?  As for a company, no idea.

Enlist an accountant for sure to keep you right.
Title: Re: Living in the North, Working in the South
Post by: Tony Baloney on October 14, 2019, 07:51:11 PM
MR this is my issue. A fella I know is doing it and says it's all gravy, but when I explained his setup to an accountant, the first thing he asked me is "has he been doing it for a full year?" He also reckons he'll be in for a shock!
Title: Re: Living in the North, Working in the South
Post by: Leonardo on October 14, 2019, 07:58:39 PM
I work in construction- main contractor takes 35% RCT Tax off my invoice and pays to ROI Revenue. I then have to reclaim it.
Title: Re: Living in the North, Working in the South
Post by: marty34 on October 14, 2019, 08:00:57 PM
Quote from: balladmaker on October 14, 2019, 07:49:22 PM
I'd assume that if you're based in the north, have income incoming from the south ... as you're tax resident in the north, you declare your southern income via your yearly self assessment tax return to HMRC?  As for a company, no idea.

Enlist an accountant for sure to keep you right.

If you were working in south and living in south during week but coming home at week-end, would you have to declare that to HMRC?
Title: Re: Living in the North, Working in the South
Post by: Rossfan on October 14, 2019, 09:34:04 PM
Quote from: laoislad on October 14, 2019, 07:34:47 PM
Typical Nordies coming down here taking our jobs....
And trying to not pay tax then ::)
Title: Re: Living in the North, Working in the South
Post by: balladmaker on October 14, 2019, 09:36:53 PM
Quote from: marty34 on October 14, 2019, 08:00:57 PM
Quote from: balladmaker on October 14, 2019, 07:49:22 PM
I'd assume that if you're based in the north, have income incoming from the south ... as you're tax resident in the north, you declare your southern income via your yearly self assessment tax return to HMRC?  As for a company, no idea.

Enlist an accountant for sure to keep you right.

If you were working in south and living in south during week but coming home at week-end, would you have to declare that to HMRC?

I'd say you will pay in the south, then claim back via double taxation in the north .... if southern bill is less than northern, you'll have to pay different to HMRC .... I assume.  Either way, you have to pay.
Title: Re: Living in the North, Working in the South
Post by: Armagh18 on October 15, 2019, 08:09:51 AM
Quote from: Leonardo on October 14, 2019, 07:58:39 PM
I work in construction- main contractor takes 35% RCT Tax off my invoice and pays to ROI Revenue. I then have to reclaim it.
Speak to your accountant, should only be 20% you are losing.
Title: Re: Living in the North, Working in the South
Post by: Armagh18 on October 15, 2019, 08:11:05 AM
Quote from: marty34 on October 14, 2019, 08:00:57 PM
Quote from: balladmaker on October 14, 2019, 07:49:22 PM
I'd assume that if you're based in the north, have income incoming from the south ... as you're tax resident in the north, you declare your southern income via your yearly self assessment tax return to HMRC?  As for a company, no idea.

Enlist an accountant for sure to keep you right.

If you were working in south and living in south during week but coming home at week-end, would you have to declare that to HMRC?
As far as I know, if you're in the south after midnight you're classified as tax resident down there.
Title: Re: Living in the North, Working in the South
Post by: marty34 on October 15, 2019, 08:58:22 AM
Quote from: Armagh18 on October 15, 2019, 08:11:05 AM
Quote from: marty34 on October 14, 2019, 08:00:57 PM
Quote from: balladmaker on October 14, 2019, 07:49:22 PM
I'd assume that if you're based in the north, have income incoming from the south ... as you're tax resident in the north, you declare your southern income via your yearly self assessment tax return to HMRC?  As for a company, no idea.

Enlist an accountant for sure to keep you right.

If you were working in south and living in south during week but coming home at week-end, would you have to declare that to HMRC?
As far as I know, if you're in the south after midnight you're classified as tax resident down there.

Be hard to be taxed twice!
Title: Re: Living in the North, Working in the South
Post by: armaghniac on October 15, 2019, 04:59:28 PM
http://borderpeople.info/a-z/trans-border-workers-relief.html
Title: Re: Living in the North, Working in the South
Post by: Hound on October 16, 2019, 02:01:10 PM
Quote from: Armagh18 on October 15, 2019, 08:11:05 AM
As far as I know, if you're in the south after midnight you're classified as tax resident down there.

That's not correct. It changed about 10 or 12 years ago.

To be tax resident in Ireland, you need to be down south for:
- 183 days in the year (calendar year for Irish tax) or
- 280 days in the last two years.

1 day = any part of the day. Even crossing the border for 5 minutes!

So if you do work 5 days a week down south, you'll clearly be tax resident in Ireland.
But (in most cases) it's not possible to be tax resident in two places, so if you are also tax resident in the UK under UK rules, then you need to look at the tiebreaker clause in the Ireland-UK tax treaty.

It says that if you are tax resident in both UK and Ireland under local rules, then you will only be tax resident in the place where you have a permanent home available.

So, most cross border workers will remain just tax resident where they live.

However, if you are an employee you will probably still have PAYE deducted, so will have to claim that back. Or if you're a company, you will have RCT deducted if you are a building contractor.
Title: Re: Living in the North, Working in the South
Post by: cornerback on October 16, 2019, 02:47:26 PM
Quote from: Armagh18 on October 15, 2019, 08:09:51 AM
Quote from: Leonardo on October 14, 2019, 07:58:39 PM
I work in construction- main contractor takes 35% RCT Tax off my invoice and pays to ROI Revenue. I then have to reclaim it.
Speak to your accountant, should only be 20% you are losing.
0% up to date tax compliance
20% substantially up to date
35% poor tax compliance or not registered
Title: Re: Living in the North, Working in the South
Post by: redzone on January 09, 2020, 08:40:45 PM
Any update on this Tony