UK contractors can continue to contract through their UK company in Ireland and avail of certain advantages.

With the Irish economy experiencing strong growth and the possibility for contractors to earn excellent rates many UK-based contractors are exploring the possibility of contracting in Ireland.

We have outlined in this blog the options you have as a UK contractor when coming to contract in Ireland.

Operate through your existing UK company

If you already have a UK-incorporated company that you use for Contracting in the UK and you are coming to work in Ireland on a contract basis, you can continue contracting through your UK company. Generally, your UK company will be obliged to register as an employer for payroll tax purposes and to deduct payroll taxes under the Irish PAYE system on the salary paid to you. However, subject to meeting certain fairly strict conditions you may qualify for an exemption from the obligation to operate PAYE.

However, if you intend to contract in Ireland on a long-term basis you would fall into the Irish tax system and your UK company would pay the payroll taxes in Ireland. You may apply to stay within the UK national insurance system so that you continue to pay your national insurance in the UK to keep up your entitlement to long-term benefits and, in particular, the state retirement pension.

Note also that any dividends paid to you from your UK company may fall to be taxed in Ireland and EFM Ireland can provide specific advice in connection with this together with tax treaty benefits that you may qualify for.

Set up an Irish Incorporated Company

If you are moving to Ireland long-term then it may be more beneficial and convenient to incorporate a limited company in Ireland and use that for your contact here. EFM Ireland provides a full business start-up service which includes company incorporation and tax registration. EFM Ireland also provides a full ongoing accounting and company secretarial service which ensures you are fully tax compliant allowing you to get on with your contract.

If you require any further details on UK contractors starting a contract in Ireland or relation to our contractor accounting services please contact our central team via email or call 01442 8176.