How to use your Ltd company when contracting in Ireland
It may be beneficial now (more than ever) for UK contractors to sign a contract in Ireland because of the instability connected to Brexit. At the same time, the Irish economy is booming as rates for contractors in Ireland continue to rise.
However, it’s important to bear in mind that contracting in Ireland is different from contracting in the UK, because regulations regarding expenses and taxation in Ireland are stricter.
Due to the ease of over-all use and reasons listed above, it may be more attractive for many UK contractors to use their own, existing company.
Reasons why you should keep using your UK LTD company while in Ireland:
- You are entitled to use your UK LTD for 183 days; this may add up to approximately a year under existing rules using travel back and forth (WFH in the UK).
- A UK contractor can get a PRSI exemption while on a short-term contract in Ireland.
- Travel, subsistence and accommodations can equate to large tax deductions due to increased expenses.
- It’s permissible to use your own UK company for short terms in foreign countries instead of setting up a local company.
If you’re looking for one timeline to follow and you’re not going to stop searching the internet until you find an article that gives you the advice you want, then the safest deadline for you is 30 days.
Don’t spend more than 30 days in a calendar year working in Ireland without getting the correct registrations in place.
While these dates have relevance, some relate to deadlines for the company and others relate to deadlines for the individual. The reality is very few contracts will be for 30 days or less.
Even if your contract only requires you to be in Ireland a few days a week, that’s still only about 4 months of contracting before you breach 30 days. Most contracts of this length invariably get extended, so you will have to backdate everything and that might lead to tax penalties.
Therefore, it’s important to have local assistance. Accounting Pro operates in Ireland and the UK and we are perfectly placed to make sure you are compliant and safe from tax issues. Talk to us about your plans and we’ll tell you exactly what you need to do and when.
Accounting Pro can:
- Ensure that you remain tax compliant with your UK company
- Take over management of your UK company
- Transition you to an Irish setup if required
- Provide support to setup an Irish Limited company
- Help open an Irish bank account
- Give you the required aid to obtain a PPS number (NI equivalent)
- Assist you with all company administration
- Compliantly retain as much net income as possible
- Close down your UK company if you decide to stay in Ireland long term
7. Help you navigate contracting in Ireland, since we are former contractors ourselves having worked in Ireland and the UK
Accounting Pro is Ireland’s premier contractor accounting service. We are here to help, the busy contractor and company, with all your accounting and payroll needs. We are both an umbrella company and umbrella corporation and we can create your limited company. We are experts in contractor pensions, contractor health insurance, illness and sick benefit for the self employed and contractor expenses. To learn more about what we do please review https://www.accounting-pro.ie/ and contact us by email: firstname.lastname@example.org or phone us 01 6933370. For the UK see Accounting-Pro UK. “How to use your Ltd company when contracting in Ireland” is an article written by Accounting-Pro Ireland for the benefit of everyone. Feel free to share it but please give attribution on a CC BY-SA license.