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Working for an Irish Company and living UK

Irish cross border workers taxes

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Hi

I have a question which I'm hoping is reasonably straight forward. I have received a job offer from a company in Dublin whereby I will be in the office for an average of once a week, with the rest of the time spent working from home in Northern Ireland.

The offer is a good offer but having paid for an assessment to be carried out, it would appear that as I am a non resident that I broadly speaking will be taxed higher, due to not receiving certain allowances, than if I was resident.  This has come as a shock to both the company offering me the job and myself. I have read that I would be taxed as a single person, but have also read about requesting PAYE is set aside and also aggregation relief. I am not certain if I fall into any of these categories. 
 

I am married, my wife works in NI and we have two small kids. The firm are really keen to have me, I want to join the firm, but at the minute it would appear that they are going to have to pay over the odds to get the equivalent U.K. GBP taxable salary I had been expecting. Unfortunately time is running out and it needs sorted by tomorrow. Be truly grateful if anyone can advise.

Many thanks 

Replies (9)

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By David Ex
25th Aug 2021 21:57

pabloed55 wrote:

The firm are really keen to have me, I want to join the firm, but at the minute it would appear that they are going to have to pay over the odds to get the equivalent U.K. GBP taxable salary I had been expecting.

What’s your problem then?

If the prospective employer wants to get some professional advice to see if they can save money on your salary, that’s their prerogative. You’re not asking us to advise your employer, are you?

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Replying to David Ex:
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By pabloed55
25th Aug 2021 22:10

My problem is that the the firm have boundaries in terms of the maximum that they can pay which on paper is equivalent to a GBP salary of X, but due to the taxation situation of being a cross-border worker is worth a lot less than X.

I was asking for advice for me, not any prospective employer

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Replying to pabloed55:
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By Tax Dragon
26th Aug 2021 05:41

Advice for you? Move to Dublin?

I'll probably be told off for being facetious, but it's not, is it? You tell us your present circumstances cause a tax burden you are not willing to bear. It sounds like a tax burden that arises in Éire. I don't charge to advise on Irish tax, and I limit my contributions in here (so far as they relate to tax) to matters I would charge to advise about. So I won't comment, beyond observing that you also told us the unbearable burden wouldn't arise if you lived in Dublin. Hence the suggestion.

My other suggestions would be to take advice in the country concerned, and that next time you try not to leave it until the day before you need an answer before you seek relevant advice.

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Replying to Tax Dragon:
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By jonharris999
26th Aug 2021 07:27

+1. There isn't any way round the constraints here that i) as a resident of NI you are taxed there and ii) the offer is from a business resident in a more favourable regime, which doesn't wish to lose the advantages of being resident in that regime.

Unless it wants/needs you very much, and can therefore flex its 'maximum', or meet you in the middle (in the financial sense, I mean; not relocate you to Newry - that won't solve anything).

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Replying to pabloed55:
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By Leywood
26th Aug 2021 08:47

If they have reached that maximum then have reached that maximum. What is there to add?

That of course doesn’t preclude them, nor in fact you, from getting paid for advice in the appropriate jurisdictions.

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By Taxie21
26th Aug 2021 08:48

https://borderpeople.info/a-z/tax-frontier-workers.html

this site is always useful for cross border workers - you will be subject to PAYE In the south but can do a tax return in the north and use the tax suffered to offset any UK liability - be aware that there may still be a case where you will end up paying more in the south as HMRC cannot refund tax you have paid to the revenue commissioners.

Aggregation relief is your other option - broadly speaking though given USC is a tax under the Double tax treaties - from my experience it sort of evens out in the end.

I would suggest your potential employer takes advice from an Irish tax accountant and passes this onto you

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Replying to Taxie21:
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By pabloed55
26th Aug 2021 11:29

Thanks, yes, I have seen and used that site and also been exploring the aggregation option with my accountant, who didn't seem too sure about it.

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Caroline
By accountantccole
26th Aug 2021 09:10

If you are working 4/5 of the time at home in the UK, shouldn't you be on a UK contract for most of the work anyway?

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Replying to accountantccole:
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By Jdopus
26th Aug 2021 11:17

I agree with this. I think your employer should be looking at registering for PAYE in the UK and running you through a UK payroll given that's where your main place of work appears to be. Since UK payroll taxes are lower than Irish it's probably the simplest solution all around.

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