Limited Company in Ireland - Working abroad

retalivity

Hi,
I'm an IT contractor, with my own limited company that I use to invoice, draw a wage from etc. I have worked in Ireland for the whole duration of the company's existence, and have an accounting company to assist with monthly tax returns etc. I am nearing the end of my current contract, and am looking for new positions, but as well as having prospects & interviews in Ireland, I have also been in touch with an agency on a 6-12 month contract in Guernsey in the channel islands. As it has a much higher day rate & the place has a more favourable tax rate, and negotiations are at an advanced stage, it is something I am seriously considering. However, I have no clue on what the story is with the current company and working abroad - can i keep my current company going and bill from that to Guernsey? what are the tax implications? As I will probably be there over 91 days, which seem to be the minimum for tax residency, I am unsure on what to do to minimise my tax liability. I would prefer not to liquidate the current company just cos I'm moving abroad for a while, but I am struggling to find guidance on what to do?

FWIW, I have asked my accountants, but they are next to useless, hence why am also in the process of replacing them, but thts a different story. So i come to boards to see if anyone has any similar experiences, although not necessarily with the channel islands - just contracting abroad but with an irish regd limited company.

Thanks!

davindub

There is no issue invoicing a company in Guernsey from a Irish perspective, but there may be implications from a Guernsey perspective, presumably they have their own rules for non resident companies providing services there. Irish accountants won't be able to help you there, it is an unusual place to have experience in if you are based in Ireland. Channel Islands is not within the EEA but they have a special relationship with the UK, so preferably get advice from Guernsey based accountants, or failing that UK based accountants with experience. The most likely issues are GST and their own place of supply rules.

Now the issue arises of your own employment, as you might be tax resident in Ireland (based on > 183 days in Ireland) but employed & resident (>91 days or principle resident if > 183 days) in Guernsey. You will need to solve the issue of funds remitted into Guernsey if receiving distributions from your company or employment tax on salary earned there, local payroll companies can help with that. You may need to submit Irish and Guernsey income tax returns (or

A more straight forward way to do this would be to set up a company in Guernsey, maintain your Irish company (there is no issue having 0 returns if it comes to that) and conduct your business in Guernsey from there.

thegolfer

Another point to note is that a directors salary paid, to you, by default is taxable here in Ireland, irrespective of your tax residence.

Suggestion of a new company is viable, however depends on the salary you are drawing down.

The use of the Irish company is there so that present employers in Ireland do not have to employ you as an employee, just a contractor.

Speak to those in Guernsey, you may get better details there.