Calling UK Contractors – find out the benefits of using your UK company in Ireland!

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UK contractors can continue to contract through their UK company in Ireland and avail of certain advantages.

With the Irish economy experiencing strong growth and the possibility for contractors to earn excellent rates many UK based contractors are exploring the possibility of contracting in Ireland.

We have outlined in this blog the options you have as a UK contractor when coming to contract in Ireland.

1. Operate through your existing UK company

If you already have a UK incorporated company that you use for Contracting in the UK and you are coming to work in Ireland on a contract basis, you can continue contracting through your UK company.  Generally, your UK company will be obliged to register as an employer for payroll taxes purposes and to deduct payroll taxes under the Irish PAYE system on the salary paid to you.  However, subject to meeting certain fairly strict conditions you may qualify for an exemption form the obligation to operate PAYE.

However, if you intend to contract in Ireland on a long-term basis you would fall into the Irish tax system and your UK company would pay the payroll taxes in Ireland.  You may apply to stay within the UK national insurance system so that you continue to pay your national insurance in the UK to keep up your entitlement to long term benefits and, in particular, the state retirement pension.

Note also that any dividends paid to you from your UK company may fall to be taxed in Ireland and OSK can provide specific advice in connection with this together with tax treaty benefits that you may qualify for.  

2. Set up an Irish Incorporated Company

If you are moving to Ireland long-term then it may be more beneficial and convenient to incorporate a limited company in Ireland and use that for your contact here.  OSK provides a full business start-up service which includes company incorporation and taxes registration.  OSK also provides a full ongoing accounting, taxation and company secretarial service which ensures you are fully tax compliant allowing you to get on with your contract.

If you require any further details on UK contractors starting a contract in Ireland or in relation our contractor accounting services please contact Imelda Prendergast on 01 439 4206.

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