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Irish company registering for PAYE in uk

Can an Irish co. with no UK tax presence voluntarily register for a PAYE scheme?

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An Irish company with no UK tax presence wants to employ a member of staff in the UK. They have no obligation to register for PAYE but would like to as it would tax the compliance burden off the staff member i.e. so the staff member doesn't have to register for PAYE scheme or self-assessment. Competition for staff with this particular skill set is intense and so they want to make the employment process as seamless as possible.

Is this possible?

My immediate thought is that they may make themselves liable for employers NI needlessly.

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By brenbrady
01st Aug 2019 17:57

My understanding is that under the Irl UK DTA, where the employment duties are carried out in the Contracing State (the UK) then the income is taxable in the UK.

In summary, wherever the employment duties are carried out then that is where the employment is taxed. For example, if a UK company hires a member of staff to work in Ireland then Irish PAYE would be operated on that employment and the UK company would register as an Irish employer.

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By paras007
02nd Aug 2019 10:17

exceljockey wrote:

My immediate thought is that they may make themselves liable for employers NI needlessly.

The Irish company is obliged to arrange to pay over UK NI (under EU regulations) so they have to register a PAYE scheme in the UK (only required for NI purposes though).

So as soon as they hire the UK employee they are liable to UK NI, it is not optional.

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By SteLacca
02nd Aug 2019 10:50

Yes, they can have a full PAYE scheme and operate PAYE as normal.

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