Income tax and NIC implications of moving abroad but continuing to work in UK

Income tax and NIC implications of moving...

Didn't find your answer?

My client is British but moved to the Republic of Ireland to live. He now travels from home to the UK each week to work in the construction industry. Payments are made to him net of 18% tax via the CIS25 form. He does not do any work in Ireland.

What are the implications for him for income tax and NIC? For example (1) may he re-claim the weekly air fares for commuting? (2) is he entitled to the full personal allowance? (3) does he have to pay full NIC (classes 2 and 4)?

I assume that he is resident in UK and domiciled in Ireland.
Anon

Replies (1)

Please login or register to join the discussion.

Euan's picture
By Euan MacLennan
19th Sep 2006 17:14

Hello...whoever you are!
Do you mean resident in Ireland and domiciled in the UK?

Regardless of residence, he is liable to UK income tax on work done in the UK. As a British citizen, he is entitled to the usual personal allowance, again regardless of residence.

If he is no longer ordinarily resident in the UK, he is not actually liable to pay Class 2 NIC from 26 weeks after moving to Ireland, but as he is present in the UK every week, he is entitled if he wishes to pay Class 2 NIC and would probably be well advised to do so because he would maintain his entitlement to UK benefits, including the state pension in due course, for only £2.10 a week. As a non-UK resident, he is excepted from Class 4 NIC.

Although there are provisions allowing some travel expenses for UK residents conducting trades abroad, I do not know if the same applies in reverse.

Thanks (0)