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Thinking of starting a consultancy business in Irelan

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  • 10-04-2018 5:15pm
    #1
    TomInSligo
    Registered Users Posts: 3 ✭


    Hello

    I am thinking of starting up an IT consultancy business and am making up my mind whether to base it in the UK or Ireland. The bulk of the work would come from continental Europe.

    Would anyone have experience to share on the relative merits of the business environments of the U.K. and Ireland?
    Tagged:


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    #2
    GerardKeating
    Registered Users Posts: 7,623 ✭✭✭GerardKeating


    TomInSligo wrote: »
    Hello

    I am thinking of starting up an IT consultancy business and am making up my mind whether to base it in the UK or Ireland. The bulk of the work would come from continental Europe.

    Would anyone have experience to share on the relative merits of the business environments of the U.K. and Ireland?

    Based in the UK, you might suffer (or gain) from exchange rates flucuations.

    And Post-BREXIT, you might find "issues"


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    #3
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    ^ agreed. Internationally, Ireland has a good rep for IT consultancy. Why had exchange risk to the problems you will face in a start-up? And Brexit on top of that?


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    #4
    TomInSligo
    Registered Users Posts: 3 ✭TomInSligo


    Has anyone experience of the Irish tax treatment of consulting companies?


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    #5
    Paddy001
    Registered Users Posts: 724 ✭✭✭Paddy001


    TomInSligo wrote: »
    Has anyone experience of the Irish tax treatment of consulting companies?

    What do you need to know?


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    #6
    [Deleted User]
    Posts: 17,728 ✭✭✭✭ [Deleted User]


    TomInSligo wrote: »
    Has anyone experience of the Irish tax treatment of consulting companies?

    Company takes in x + VAT if applicable.

    X is used for expenses, equipment, rent and salaries etc
    Any balance ie profit is subject to corporation tax.


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    #7
    TomInSligo
    Registered Users Posts: 3 ✭TomInSligo


    It’s a bit more complicated. Professional services companies are subject beyond corporation tax to close company surcharge of 15% on half of undistributed profits, taking the corporation tax paid to 20%. Dividends are taxed to bring them in line with income from employment at 40%. It therefore makes sense to live on a salary rather than dividends to reduce profits - reducing the incentive to take the risk in establishing a p.s. company. This is not the case in the U.K. Can anyone confirm this? VAT would not be a problem as all work would be done in continental Europe. Thanks.


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