Tax implications of remote working

English IT contracting company delivering services through remote working for Irish company

Didn't find your answer?

I am a UK national and a consultant living in England providing cyber security services through my own Ltd company (as a 1 person company) to clients sometimes through a 3rd party as a contractor.  An Irish IT contracting company has approached me to deliver services to an Irish utility company that is part state owned.  My contract would be with the Irish IT contracting company.  The work is to be delivered remotely from England with occasional trips over to Ireland (less than 2 days a month).  Invoices will be in EU to the Irish company.  I normally pay myself a low salary and take dividends.  I have not delivered services to Ireland since before Brexit so I am trying to figure out what tax regimes would apply, whether Irish tax applies etc.

  • Does IR35 apply?
  • Do I need an Irish work permit or visa?
  • What will be the situation with VAT?
  • Do I become liable for tax in Ireland?

I have an accountant/book keeper but he is not experienced in this sort of situation.  Any recommendation of a company that can review the contract and advise about the tax status?

 

 

Replies (7)

Please login or register to join the discussion.

avatar
By David Ex
17th Jun 2023 10:45

You will find someone here:

https://www.icaew.com/about-icaew/find-a-chartered-accountant

Other professional bodies are available.

Thanks (1)
avatar
By Catherine Newman
17th Jun 2023 11:05

The starting point is the nature of the contract. Firstly isn't it through the company and not you? To determine whether IR35 applies you would need to look at the terms of engagement-regular or on ad hoc basis.

Thanks (0)
Avatar
By I'msorryIhaven'taclue
17th Jun 2023 11:28

https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a

It’ll start making sense when you get to s3.2 & s6.3. Separately, there’s a link at s14 to the special rules for supply of digital services. That’s mainly concerned with B2C related digital services, although you should read it if only in case your B2B customer(s) provide inadequate evidence of their business status.

Thanks (1)
Replying to I'msorryIhaven'taclue:
avatar
By stevenelane
17th Jun 2023 13:21

That's really useful and it looks like I could run a zero rated VAT scheme for example as I did pre-brexit. Place of belonging would be UK. Usual place of residence is the UK.

I take it that provided you do not exceed the threshold for the number of days being physically in Ireland to become tax resident, then you would only pay UK taxes and operate your business the same as if you client was a UK business. Would that be correct?

I am still not sure if IR35 could apply to this sitution given that the both the intermediary and the end client are overseas. Given that I will have a contractural right to work where I see fit to deliver the work and I can insist on the right of substitution I suspect I would be outside of IR35 anyway, but I am not sure how it works if your end client is overseas. I would assume IR35 is domestic legislation that does not apply when the client and intermediary are overseas?

Is there any paperwork that is required either in Ireland or in the UK (not including the NI protocol) that is needed to deliver this sort of engagement due to Brexit rules?

Thanks (0)
Replying to stevenelane:
avatar
By Matrix
17th Jun 2023 14:32

The intermediary in the intermediaries legislation means your UK company. I would obtain both UK and Irish advice and a contract review.

Thanks (1)
Replying to stevenelane:
Avatar
By I'msorryIhaven'taclue
18th Jun 2023 09:52

Well I’m not sure how your cunning VAT plan might work for the services you propose to supply to your new EU customer. If I’ve understood you correctly, your services won’t be liable to UK VAT (but may well be subject to VAT in your customer’s country).

Whilst it’s admirable that you are attempting to construct your own feasibility study / business plan for this proposed project, I do feel you will need to hire someone with at least an all-rounder’s level of expertise and experience (or, if your purse will stand it, a larger practice with individual experts in eg ir35, VAT, and the other topics for which you seek answers). Each of your questions will have “it depends” answers, which means they will need adapting to your particular circumstances. Some are cans of worms, that will inevitably lead to myriad further questions.

You really need paid-for advice from someone who knows the ropes. The rules / laws tend to work on a rule / exception to the rule / (sometimes) exceptions to the exceptions. It’s all too easy on a public forum to repeatedly ask the same question(s) until someone comes along and tells you the answer(s) you want to hear.

Thanks (0)
avatar
By Truthsayer
20th Jun 2023 09:24

'I have an accountant/book keeper but he is not experienced in this sort of situation.'

Then get one who is. You are so far addressing only the known unknowns. You are unaware of many unknown unknowns which an appropriately qualified accountant can deal with.

Thanks (0)