Donegal and Brexit

Mint Sauce

muffler wrote: »

For bargains?

Bargins/exchange rate.

realdanbreen

alchemist33 wrote: »

I commute across the border every day so I've already taken a pay cut this morning! I expect Sterling will re-assert itself over time but there are other implications for me, such as anything that causes a tailback at the border will be a pain in the backside twice a day.

There are many others for the county as a whole, with cross-border shopping (for groceries in the North and fuel in Donegal) under threat, and the potential for losses in business, healthcare and socially. Isolated up in the corner, Donegal NEEDS as open a border as possible to survive, never mind thrive, IMO.

How do you think this will pan out for us?

Relax. Brexit aint going to happen. That referendum result has no legal binding and whether Britain leave or remain is entirely up to the British Parliament.

muffler

Mint Sauce wrote: »

Bargins/exchange rate.

Do you think that cross border online shopping might become more restrictive in the coming months?

Im just thinking of all the different Chinese retailers for example that sell online and when we buy from there we are limited to something like a maximum of a €22 spend before being hit for customs charges.....if caught of course. Will brexit leave us in the same situation in the future when dealing with the likes of Amazon UK?

from_atozinc

Madam wrote: »

I don't think there will be any physical borders(at least not with border guards and such). I mean what if/when Scotland becomes independent - will there be borders between Scotland and England and if I want to travel to NI then on to Donegal, How many effing borders will I have to cross?;)

3?

muffler

realdanbreen wrote: »

Relax. Brexit aint going to happen. That referendum result has no legal binding and whether Britain leave or remain is entirely up to the British Parliament.

Thats more suitable for discussion in the politics forum so we wont go down that road. Thanks.

realdanbreen

muffler wrote: »

Thats more suitable for discussion in the politics forum so we wont go down that road. Thanks.

But surely the whole thread is pointless then?

muffler

realdanbreen wrote: »

But surely the whole thread is pointless then?

The people of the UK made their decision and Brexit is happening/going to happen. If you are coming here to tell us differently then I am going to class that as trolling. I give you the benefit of doubt with your previous post so dont push it. We can leave it at that.

Mint Sauce

muffler wrote: »

Do you think that cross border online shopping might become more restrictive in the coming months?

Im just thinking of all the different Chinese retailers for example that sell online and when we buy from there we are limited to something like a maximum of a €22 spend before being hit for customs charges.....if caught of course. Will brexit leave us in the same situation in the future when dealing with the likes of Amazon UK?

I do fear that as well. Have bought the occasional thing high value product, where if it was bought from outside the EU, it may have occured duty.

muffler wrote: »

The people of the UK made their decision and Brexit is happening/going to happen. If you are coming here to tell us differently then I am going to class that as trolling. I give you the benefit of doubt with your previous post so dont push it. We can leave it at that.

In his defence, it may not happen, due to the closness of the vote, and the whole mess left in its wake, and purely down to the fact Parliament will still have to discuss it. Although will leave it for another day. Its nice to be prepared though, or have some idea of what may and maynot happen should it go through or not.

NIMAN

Can't see it not happening, unfortunately.

If parliament in the UK ignored the will of the electorate, it wouldn't go down too well.

Sad thing is, so many of those who voted leave would probably vote remain if asked to vote again in the morning, now they know they were lied to in so many of the promises.

L1011

NIMAN wrote: »

Sad thing is, so many of those who voted leave would probably vote remain if asked to vote again in the morning, now they know they were lied to in so many of the promises.

And maybe ~1500 a day are dying (based on the last poll support was strongest amongst the very elderly)

Technique

I was down south for a few days this week - Cork, Limerick Dublin - and the road network was excellent. I then drove from Dublin to Letterkenny and depressingly realised that due to last week's vote we'll never have a decent road to our capital city. This condemns Donegal to be even more isolated.

NIMAN

Technique wrote: »

I was down south for a few days this week - Cork, Limerick Dublin - and the road network was excellent. I then drove from Dublin to Letterkenny and depressingly realised that due to last week's vote we'll never have a decent road to our capital city. This condemns Donegal to be even more isolated.

The NW is general, both in RoI and NI, is neglected by their respective governments.

NIMAN

Maldesu wrote: »

How is he working that out if you don't mind me asking?

Not 100% sure but I think the basic jist of it is this.

On your ROS Online tax return there is a section where I currently enter my income from NI employment, and its under the cross border worker agreement. In this form, I never owe Revenue any money.

After Brexit, my income will go into another section, can't remember what its called, something like OVERSEAS EMPLOYMENT?

In this, Revenue will take my wages and remove the amount I have paid in tax to HMRC. But since the tax rate in RoI is higher than NI, they will make me pay the difference on my income, plus of course I will be liable for the USC on it too.

When we put in the figures as a test it went from zero liability to over €5000.

As this will apply to everyone who works North but lives South, it has huge implications. And I can't see Revenue not chasing these people up for the money, can you?

Pique

How does it work for people who live in the north but work in the south? Would they get a rebate as the tax in the north is lower?

If so, it could make Donegal more attractive than Derry for companies as they would be able to attract workers from the north as well as the locals. As you said, it doesn't work in reverse (ie, companies in Derry could lose staff from the south due to the tax liability)

Maldesu

NIMAN wrote: »

Not 100% sure but I think the basic jist of it is this.

On your ROS Online tax return there is a section where I currently enter my income from NI employment, and its under the cross border worker agreement. In this form, I never owe Revenue any money.

After Brexit, my income will go into another section, can't remember what its called, something like OVERSEAS EMPLOYMENT?

I ran this by my own tax guru (we've been discussing the Brexit and tax quite a bit) who said that the cross boarder reliefs is part of Irish Legislation and nothing to do with the EU, so it shouldn't change with the Brexit. Think I've peaked their curiosity now though cos they're going to look at it later on.

TireeTerror

Its scaremongering of the highest order to think there will be a physical manned border at every crossing. There are sooo many roads crossing its a nonsense. All that's likely to happen, if anything at all, is there will be a strengthening of security at the ports in Belfast.

The Brexit result has been great personally, I was so hoping for this so that Sterling would plummet. Should be around 90p to the Euro by year end, making my Euro stretch further and further. Its great living next to the border, bargains to be had choosing even between Halfords/Tesco/Argos etc ROI or UK. Often huge savings to be made depending on what direction I chose to leave my house. LOVE IT!

muffler

TireeTerror wrote: »

Its great living next to the border, bargains to be had choosing even between Halfords/Tesco/Argos etc ROI or UK. Often huge savings to be made depending on what direction I chose to leave my house. LOVE IT!

Why's your location listed as Dublin then?

DrPhilG

NIMAN wrote: »

However I have just met with my accountant, and if Brexit goes ahead as planned my annual tax owed to Revenue would be over €5k.

Eek!

I work in Derry as does my wife, and we also have a rental income in Ireland from a second house so I have a tax return in the south.

TireeTerror

muffler wrote: »

Why's your location listed as Dublin then?

It's been set that way since I moved to Ireland in 2011 and I was living in Malahide. I've been living smack in the middle of Derry, Lifford and LK since December. Love it here, best part of Ireland by a long long way. The bonus of UK shops like Sainsbury's and Asda is just the cherry on the cake. Not to mention cheap heating oil from the North.

NIMAN

Maldesu wrote: »

I ran this by my own tax guru (we've been discussing the Brexit and tax quite a bit) who said that the cross boarder reliefs is part of Irish Legislation and nothing to do with the EU, so it shouldn't change with the Brexit. Think I've peaked their curiosity now though cos they're going to look at it later on.

I hope you're right.

NIMAN

DrPhilG wrote: »

Eek!

I work in Derry as does my wife, and we also have a rental income in Ireland from a second house so I have a tax return in the south.

Do you do your own tax returns?
If not, maybe you could ask your tax advisor what their take on it is should Brexit come to pass.

As for Brexit ever coming to pass, I am starting to think it might never happen.
A lot of people have been saying how they didn't know what they were voting for when they voted to leave, plus we have a lot of the promises of the 'Leave' side exposed as lies, plus we have the 2 main men in Boris and Farage jump ship as they had no plan of what to do next. For me it looks like its starting to come apart, and Theresa May is favourite for the Tory leadership I think, and she was a Remain person, so will she ever activate Article 50?

DrPhilG

Emailed my accountant today, she confirmed that you are correct, although dependant on whatever deal is negotiated with the UK.

NIMAN

Oh no.

Think Maldesu needs to chat to the tax guru again to see whats what.

Maldesu

NIMAN wrote: »

Oh no.

Think Maldesu needs to chat to the tax guru again to see whats what.

Guru says to look at Section 825A Taxes Consolidation Act 1997. We have a treaty that doesn't change if the brits leave the EU.

NIMAN

http://www.irishstatutebook.ie/eli/1997/act/39/enacted/en/print#sec825

https://www.charteredaccountants.ie/taxsource/1997/en/act/pub/0039/sec0825A.html

I tried reading around that stuff, and my head hurts. Perhaps you could get the actual line highlighted that means I won't be liable for €5k each year, cos I can't find it.
I must email my person and see what they say.

I really hope I'm wrong and you're right.

NIMAN

After further contact with my tax person, it does appear that me having a liability of several thousand Euro is the absolute worst case scenario, but it could happen.
They explained it to me, and here it is:

Section 825A is the section under which I currently claim tax relief on my NI wages.

We have a Double Taxation Agreement with the UK and this should still technically be covered by S825A even after the Brexit regardless of the fact that they are no longer an EU country. We have other Double Taxation Agreements with countries that are outside the EU.

If the Double Taxation Agreement remains in force after Brexit then nothing will change and I will have no liability. Hooray.

However, this will depend upon what the UK negotiates with Ireland. From whats being said in news articles it looks like Ireland will seek to protect the cross border workers and not double tax them.

Lets hope they do.

Maldesu

NIMAN wrote: »

If the Double Taxation Agreement remains in force after Brexit then nothing will change and I will have no liability. Hooray.

However, this will depend upon what the UK negotiates with Ireland. From whats being said in news articles it looks like Ireland will seek to protect the cross border workers and not double tax them.

Lets hope they do.

As the Double Taxation Agreement predated the EU membership, my guru reckons that it is unlikely that it will be interfered with in any negotiation. However, I suppose it does depend on whatever idiot is in charge at the time of said negotiations.

NIMAN

... and hopefully Ireland will be left to deal with the issue themselves, we don't want a decision on double taxation being made in Brussels.

Pique

Maldesu wrote: »

As the Double Taxation Agreement predated the EU membership, my guru reckons that it is unlikely that it will be interfered with in any negotiation. However, I suppose it does depend on whatever idiot is in charge at the time of said negotiations.

Was it before EEC membership too? I assume agreements while in the EEC were grandfathered in to the EU. If/when Brexit happens those agreements might come under scrutiny.

What area Britain ends up in (EEA, EFTA, etc) will play a part. Also the type of agreements (if they exist) between EU residents working in Switzerland or Norway will also affect us.

Penfailed

TireeTerror wrote: »

The Brexit result has been great personally, I was so hoping for this so that Sterling would plummet. Should be around 90p to the Euro by year end, making my Euro stretch further and further. Its great living next to the border, bargains to be had choosing even between Halfords/Tesco/Argos etc ROI or UK. Often huge savings to be made depending on what direction I chose to leave my house. LOVE IT!

Good for you. Not so good for me. I'm paid in sterling and all my bills are in euro