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One man Limited Company working in Southern Ireland

I have a client who is trading under a limited company and is currently working on a contract in Dublin that currently is only a few months but could turn into a longer contract (6-12 months).  He is obviously wary of working abroad when it comes to the company and his tax position.  I admit I am by far an expert in overseas working so I could do with some confirmation of his and the tax position of the company.  His wife still lives in England so he is travelling home at least fortnightly.  He is only in the 4th week of the contract but would like confirmation as soon as possible.



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29th Jul 2010 09:02

form an Irish company
The corporation tax is far lower than in the UK, and I think there is a large threshold before you pay anything. Then, pay a dividend to himself, and I think he'll get tax relief on the foreign dividend, although definitely double check and don't rely on me.

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By sbain
29th Jul 2010 10:12

Trading/Working in Ireland


I'm an accountant living and working in Ireland & its seems to me that your client has issues both as a Limited company carrying out a contract in Ireland and as an employee who may establish a tax residency in the state.

 The company needs to consider the VAT rules that apply. Is it supplying goods or services? If services are they "4th schedule" or related to immoveable goods? The point being that the company may be making a VATable supply in Ireland and so needs to register for VAT. It should also look at its responsibilities re PAYE. Since 1 January 2006 income from non irish sourced employment attributable to the performance in the state of duties of that employment is chargeable to income tax and is within the scope of PAYE irrespective of whether or not it is remitted into the state. This applies where the employment in the state exceeds 60 days in a tax year (same as the calendar year in Ireland). There are reliefs from paying PAYE where the employee does not establish tax residency in Ireland (resident in the state for more than 183 days in a tax year) and is subject to PAYE in his/her home jurisdiction, however PAYE registration in Ireland will still be required by Irish Revenue as will records and returns of payroll in Ireland and proof of PAYE deducted in the UK.

The individual needs to be aware that he/she will establish tax residency in Ireland if present in the country for over 183 days in a tax year. If that happens he/she will be liable to Irish Income Tax on world wide income.

I think you might need an Irish Accountant.

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