Irish Income

Irish Income

Didn't find your answer?

Hi,

New client over from Ireland in January 2011. He registered self-employed in January 2011 and has been asked to complete a self-assessment for the period ending 5th April 2011.

What do I do about his Irish income. He was in full-time employment in Ireland and has a P45 for when he left (which naturally is in euros) - do I need to include this in the foreign pages?

Thanks

Matt

Replies (3)

Please login or register to join the discussion.

avatar
By frustratedwithhmrc
13th Jul 2011 13:37

Need a bit more information.

If your Irish client left his job in Ireland and then moved to the UK for work (which seems to be what you are saying), then provided he was not resident in the UK during his previous employment, you should follow HMRC guidelines for someone 'coming to the UK to work'.

Given this, your client should be able to request for split year treatment under extra-statutory concession A11, provided the guidance is followed and HMRC accept the request for treatment under the terms of the concession, this should ensure that the income is treated appropriately in each of the tax jurisdictions and your client is neither over nor undertaxed.

http://www.hmrc.gov.uk/specialist/esc.pdf

You need to be careful about any bonuses or other items which were earned in one tax jurisdiction, but paid after taking up residence.

Another approach would be to use the UK/Ireland Double Tax Treaty to have the amount of tax paid in Ireland offset against your clients UK tax bill.

Horses for courses really, but those are two options open to you for balancing the issue. Depending upon the difference in rates there may be some value in taking one approach over the other.

Thanks (0)
avatar
By mattwadz
13th Jul 2011 15:43

Thanks

Many thanks for your response.

Matt

Thanks (0)
Sarah Douglas - HouseTree Business Ltd
By sarah douglas
13th Jul 2011 21:45

Irish Income comes under the UK , Republic of Ireland Double Tax

 Hi 

Please see info below and you also might find this link useful 

www.hmrc.gov.uk/manuals/dtmanual/dt9850+.htm

DT9901 - DT: Ireland, Republic of: double taxation agreement, Article 2: Taxes covered

(1) The taxes which are the subject of this Convention are:

(a) in the Republic of Ireland:

(i)the income tax; 
(ii) the corporation profits tax; 
(iii) the corporation tax; and 
(iv) the capital gains tax;

(b) in the United Kingdom of Great Britain and Northern Ireland:

(i)the income tax; 
(ii) the corporation tax; 
(iii) the petroleum revenue tax; and 
(iv) the capital gains tax.

(2) This Convention shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of this Convention in addition to, or in place of, the existing taxes.

Home|Main Contents|Manual Contents

Previous Page|Next Page|Top|Menu

   

 -- Kind Regards Sarah@ Douglas Accountancy & Bookkeeping Services, Glasgow

Thanks (0)