I Am A UK Contractor

Welcome to Ireland!

Just a heads up…the tax, payroll and expense rules around Personal Service Companies (UK) and Personal Limited Companies (Ireland) can be quite different. We’ll guide you through the best way to contract in Ireland whether using your UK Personal Service Company or using an Irish Company structure. We ensure you remain compliant while operating in the most tax efficient way.

Should I use my UK company or an Irish Company?

It is generally acceptable to use your UK Company while working on a contract in Ireland. However, if you don’t have your own UK company, or for some other reason you need an Irish company solution, we can set you up as a director in a pre-registered Irish company. There’s no joining or leaving costs, you’re instantly insured and ready to contract in Ireland in less than an hour.

Read about the Irish Director Umbrella solution click here…

Can I use my UK Company in Ireland?

Yes! There are a couple of minor exceptions but we’ll figure these out with you on a quick phone call. The majority of UK Contractors we speak to can avail of the tax efficiencies of operating through their UK Company while Contracting in Ireland.

What taxes will I pay?

When you work in Ireland, you pay Irish Income tax on the salary you are paid by your company while working in Ireland. Because Ireland and the UK have a Double Taxation Agreement you won’t pay tax twice

Contracting PLUS work closely with your UK accountant to ensure you get an exemption from paying UK tax on money paid to you while in Ireland.

What about National Insurance?

We set you up so you don’t have to pay PRSI (Ireland’s National Insurance Contributions) while working here. This would be a waste of money as you can’t get it back and you won’t be in Ireland long enough to build up enough contributions for a State pension.

We make sure you continue to pay UK National Insurance which means you are contributing to your UK State benefits and don’t have a break in your contributions.

Accommodation & Food

Can I claim Accommodation and Food as an expense in Ireland?

Yes. Your company can pay all your accommodation (including utility bills) and food costs while you are in Ireland. This money is essentially paid to you tax free in one of two ways;

1. By you having receipts and expenses for the exact spend, or
2. By using agreed rates with the Revenue Commissioners (called civil service rates)

There are a couple of criteria which must be met but the main ones are;

• The maximum number of months you can claim the expense for is 12;
• The maximum time you can be in Ireland is 24 months (so if you’re here for an 18 month contract you can claim 12 months, but if your work is going to be beyond 24 months (whether a single contract or multiple contracts) then you can’t claim anything.

Don’t worry though, when we speak with you we’ll get a full understanding of your circumstances and make sure you get the best structure for tax efficiency.

Dividends

Can I still pay myself dividends in the UK?

Yes, you can still pay yourself dividends in the UK but the benefits of doing so varies based on your personal circumstances.  When you speak to us, we will outline how they would work for you.

Travel Costs.

Can I claim my travel costs between the UK and Ireland?

Yes. However, if you are eligible to claim the tax-free Accommodation and Food costs, then only the first flight into Ireland, your last flight out, and one return flight in between can be claimed tax free.

If you are not eligible for the Accommodation and Food costs then you can most likely claim all your flights between Ireland and the UK.

How much salary should I pay myself while in Ireland?

There is no fixed answer on this as peoples circumstances differ and we absolutely must ensure that the rules set down by the Irish Revenue Commissioners are adhered to.

However, if you are eligible to claim your accommodation and food expenses tax free, then salary levels tend to be quite modest.

We will run through some calculations with you on the phone and follow up with an email outlining everything we’ve discussed.

Can I use my UK Credit card in Ireland?

Typically no. There are a few rare exceptions but unless you fall into an excepted category, we strongly recommend you don’t.

Using your UK credit card in Ireland, could be deemed the same as ‘earning’ money in Ireland and you could be taxed on it.

Will I need an Irish Bank Account?

We recommend you open an Irish Bank account (or have an online bank account which is reserved solely for your transactions while in Ireland). This keeps clear lines between your ‘UK earnings’ and your ‘Irish earnings’.

It also will be useful if you subsequently decide to permanently relocate to Ireland as you will potentially avoid additional taxes.

What about VAT & Corporation Tax?

Does my UK Company need to register in Ireland for these taxes?

No, not initially. Depending on how long you will be on assignment in Ireland will largely determine this. However, we will figure this out for you and look after all necessary registrations and returns if and when it’s necessary.

Completing Registrations

When do I need to complete the registrations to be tax complaint in Ireland?

ASAP!

While setting up as a contractor in Ireland is much easier than you may think, there are a lot of different timelines you’ll hear mentioned (30 days, 183 days, etc.) and many people confuse the importance of these.

There are a couple of simpler options if you won’t be in Ireland for longer than 6 months – but we’ll go through this with you if it’s relevant to you. The good news is our Contractor Consultants are available to talk you through the process and will address any concerns you may have using simple, jargon free language.

My client won’t accept an invoice from a UK Company

Do I need to use an Irish Umbrella Company?

No. Contracting PLUS offer an Intermediary Invoice & Payment service which allows us to step into the chain in certain circumstances and issue an invoice to your client. We don’t charge an additional fee for this service and are happy to provide it if it means you can accept a contract role in Ireland.

What’s a PPS Number?

Do I need one?

A Personal Public Service Number is similar to your National Insurance number. It is your individual tax number which identifies you as a worker in Ireland. Check out our guide on How to get your PPS Number

Contracting In the UK with a UK Company

If you’re based in the UK and are Contracting in the UK then jump to our UK website or give our London office a call on 0345 835 2777.