working in south + live in north

flog the lot · January 25, 2010, 11:40:00 AM

am currently working in south and live in north, i know the tax in south is lower, so do i also have to pay tax in the north to make up the difference?

also seeing as i pay tax in south can i in the future cliam an irish pension?

Shamrock Shore · January 25, 2010, 11:46:12 AM

Go to www.revenue.ie and look up cross-border relief.

Then this relates to the other side of the coin...i.e work in north, living in south. I am sure it's similar for your situation.

Pensions are a contrary thing. But I see no problem as EU countries recognise prsi payments/social welfare payments in other EU countries so ROI prsi contributions will count as if you paid NI in the UK.

ludermor · January 25, 2010, 11:47:15 AM

For the gangs of lads working with me you wont pay any tax!

thebigfella · January 25, 2010, 01:49:45 PM

Quote from: flog the lot on January 25, 2010, 11:40:00 AM
am currently working in south and live in north, i know the tax in south is lower, so do i also have to pay tax in the north to make up the difference?

also seeing as i pay tax in south can i in the future cliam an irish pension?

Are you employed or self employed? My company is southern registered for tax purposes but the office is in the north.

flog the lot · January 26, 2010, 12:34:58 PM

Quote from: thebigfella on January 25, 2010, 01:49:45 PM
Quote from: flog the lot on January 25, 2010, 11:40:00 AM
am currently working in south and live in north, i know the tax in south is lower, so do i also have to pay tax in the north to make up the difference?

also seeing as i pay tax in south can i in the future cliam an irish pension?

Are you employed or self employed? My company is southern registered for tax purposes but the office is in the north.

am employed, am just wondering as don't want to be in job and then be hit with unpaid tax bill from the north...

Bogball XV · January 26, 2010, 03:08:11 PM

you'll have to file a UK tax return with all your irish income on it. Your UK tax bill will be calculated on the gross income you have using UK rules, then you'll get relief for the irish tax you've already paid. If there's still money owing you have to pay the excess to the UK revenue, I'm not sure how or if you can go about reclaiming if you've paid too much though, presumably from you'd get a refund from the irish revenue. With levies etc, there can't be much difference anymore between the systems. The less you earn the more likely that the irish system will suit you best though.

armaghniac · January 26, 2010, 03:39:51 PM

http://www.borderpeople.info/

The Iceman · January 26, 2010, 04:44:10 PM

the smartest thing to do if you are contracting is to go through a management company - preferably in Cyprus or with offices in cyprus who can contract you to your job in Ireland. Your bosses pay the contracting company in Cyprus - they pay you. Because of Tax Treaties and some loop holes in the tax legislation you will take home more this way on a monthly basis and its all above board. I can put you in touch with some people if you want. Just PM me.

thebigfella · January 26, 2010, 05:33:36 PM

Quote from: The Iceman on January 26, 2010, 04:44:10 PM
the smartest thing to do if you are contracting is to go through a management company - preferably in Cyprus or with offices in cyprus who can contract you to your job in Ireland. Your bosses pay the contracting company in Cyprus - they pay you. Because of Tax Treaties and some loop holes in the tax legislation you will take home more this way on a monthly basis and its all above board. I can put you in touch with some people if you want. Just PM me.

I'd disagree, when I first started my company I was offered the option of an umbrella company (glad now I took the route as I've expanded quite a bit and it was a good learning experience). There is considerable tax advantages to be had by going down a limited route, VAT registration being one. Most of the tax loopholes by basing yourself offshore have been closed now and you are libable for tax in the UK even if you base yourself offshore. I would avoid this route tbh.

The Iceman · January 26, 2010, 08:30:25 PM

Cyrpus is not what I would call an offshore solution as compared ot Jersey, Switzerland or Isle of Mann. It is simply taking advantage of double tax treaties and loop holes.
Self employed in Ireland is a safe route but you need to make sure you have the right accountant on board in order to maximize retention. Its all a trade off based on earnings and accounting overheads. Sometimes the most cost effective route is an umbrella company. There are umbrella companies out there offering compliant solutions who are worth a look.