Life Changing Decisions...
Discussion
Hi Everyone,
I'm after some advice or thoughts on the following circumstances - I considered putting this in General Gassing but at the moment it's all pretty much work/tax related so probably best off here.
Having met the girl of my dreams and all that, we're now planning a move to Eire, it involves all sorts of exciting prospects including a self build house project on some land that I already own.
However back to the point, my work is almost exclusively performed from home and chats with my boss indicate that I can carry on as is but working from Eire.
Regarding sallary and tax, I'm currently resident in the UK, on PAYE and in the upper tax bracket.
So, on moving to Eire and being paid by a UK company - where will the tax be paid?
Am I in a position to start opening offshore accounts and getting creative?
Should I be looking to taking on a financial advisor for the next 12 months, especially taking into account that I'm going to be needing a self build mortgage pretty soon.
Many thanks for any ideas/suggestions/pitfalls that you lot might know about.
I'm after some advice or thoughts on the following circumstances - I considered putting this in General Gassing but at the moment it's all pretty much work/tax related so probably best off here.
Having met the girl of my dreams and all that, we're now planning a move to Eire, it involves all sorts of exciting prospects including a self build house project on some land that I already own.
However back to the point, my work is almost exclusively performed from home and chats with my boss indicate that I can carry on as is but working from Eire.
Regarding sallary and tax, I'm currently resident in the UK, on PAYE and in the upper tax bracket.
So, on moving to Eire and being paid by a UK company - where will the tax be paid?
Am I in a position to start opening offshore accounts and getting creative?
Should I be looking to taking on a financial advisor for the next 12 months, especially taking into account that I'm going to be needing a self build mortgage pretty soon.
Many thanks for any ideas/suggestions/pitfalls that you lot might know about.
Hi there (me again).
I come from "Eire" (I prefer the term "Republic of Ireland" myself and will use the term "Ireland" for the remainder of my post).
If you move "permanently" to Ireland, then you will become an Irish resident and will be subject to Irish Income Taxes and Pay Related Social Insurance (PRSI) charges (their equivalent of National Indsurance Contributions). You should cease to be resident in the UK at that point and should not be liable to UK taxes.
If you retain investments in the UK (such as shareholdings, rental properties, deposit accounts etc) you will suffer tax at source IN THE UK on income arising BUT you should be able to gain tax relief in Ireland for the UK tax suffered - i.e. they won't make you pay tax twice on the same income.
Things get a bit tricky if you do not move abroad "permanently" and they can get even trickier if you habitually return to the UK, especially if you do not spend a complete tax year away from the UK and when you come back to the UK you spend more than 60 days here. You could compromise you Irish residency status by coming back to the UK too often.
Find out about Irish tax rates and bands, PRSI rates and other taxes - such as the Irish equivalent of rates/council tax etc. You will probably find, maybe to your surprise, that, on any given level of income, you will be paying MORE tax in Ireland than in the UK. It's 18 years since I lived there so I am well out of touch with the current rates but I'm sure that a visit to the Irish "Revenue Commissioners" web site will allow you to see the basics of the tax situation there.
I come from "Eire" (I prefer the term "Republic of Ireland" myself and will use the term "Ireland" for the remainder of my post).
If you move "permanently" to Ireland, then you will become an Irish resident and will be subject to Irish Income Taxes and Pay Related Social Insurance (PRSI) charges (their equivalent of National Indsurance Contributions). You should cease to be resident in the UK at that point and should not be liable to UK taxes.
If you retain investments in the UK (such as shareholdings, rental properties, deposit accounts etc) you will suffer tax at source IN THE UK on income arising BUT you should be able to gain tax relief in Ireland for the UK tax suffered - i.e. they won't make you pay tax twice on the same income.
Things get a bit tricky if you do not move abroad "permanently" and they can get even trickier if you habitually return to the UK, especially if you do not spend a complete tax year away from the UK and when you come back to the UK you spend more than 60 days here. You could compromise you Irish residency status by coming back to the UK too often.
Find out about Irish tax rates and bands, PRSI rates and other taxes - such as the Irish equivalent of rates/council tax etc. You will probably find, maybe to your surprise, that, on any given level of income, you will be paying MORE tax in Ireland than in the UK. It's 18 years since I lived there so I am well out of touch with the current rates but I'm sure that a visit to the Irish "Revenue Commissioners" web site will allow you to see the basics of the tax situation there.
Eric Mc said:
Lot's of really good stuff
Hi Eric, I was hoping you'd show up
I don't think there is any other way of doing this unless it's classed as a permanent move. I've played games with jumping residency every six months between Ireland and the UK in the past, and unboubtedly it can confuse yourself and the tax people.
This time we're really looking to settle for the long term. It's interesting to note that as you say the tax payable will likely be higher, still, considering the life style I think we'll get by.
So, all good stuff, thanks, and I'll take up your note on RoI/Eire being as I'm a bit of stickler for good English too.
Good luck with your move.I went in the opposite direction in 1986 and have no intention of going back. Ireland can be an extremely frustrating place to live, especially outside Dublin. Things seem to take an age to get done and finding people, especially tradesmen and /or trade suppliers of real quality can be difficult. Also, if you have a nice "sporty" car you may find technical support a bit lacking. Mail order may be the answer.
The laid back atitude of (most) of the population is a two edged sword.
The laid back atitude of (most) of the population is a two edged sword.
For GAWD'S sake DO NOT refer to England or Britain as "the mainland" when in the Republic of Ireland. The Republic is a totally separate and sovereign state with no connections with the UK (apart from through the EU). One sure way to lose any Irish friends is to hint at any British overlordship of Ireland.
Apart from that, I'm sure you'll get on fine there - as long as you have plenty of time on your hands.
Apart from that, I'm sure you'll get on fine there - as long as you have plenty of time on your hands.
Eric Mc said:
Things seem to take an age to get done and finding people, especially tradesmen and /or trade suppliers of real quality can be difficult.
I'm well familiar with this, I lived/worked on a farm there for a few years and well appreciate the need to accept 'this week' as meaning some time in the next 6 months.
Hopefully I'll do a good deal of the work myself, really looking to just getting the shell up and then do wiring, plumbing, joinery in my own time.
I've always believed a good home has a bit of effort from all the family in it.
Just got to find someone to give me a mortgage now.
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