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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4189
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I require advice on residency so that I can make a tax return

Customer Question

I require advice on residency so that I can make a tax return in both the UK and the Republic of Ireland.
I have been permanently employed in the UK since 1 October 2014, and reside here from Mondays to Friday afternoons, but return to my family home in Ireland virtually every week-end. I have income in both countries, which is fully taxed at source on a PAYE basis in both jurisdictions. About 75% of my income arises in the UK. I have looked at the Double Tax Agreements between Britain and Ireland, and at the Simple Test for Residency, and feel that I may be deemed a resident of Ireland for tax purposes. However, I don't know if I am correct in this assumption, and I don't know if this would be the best outcome from my personal financial planning perspective.
My two questions are (i) how can I find a tax adviser who is knowledgeable about tax domicile/residency issues between UK and RoI to assist me in making returns to both tax authorities in a way that minimises my total tax liability within current tax legislation, and (ii) what typically are the fees such an adviser would charge me for advice and assistance in making returns?
Thanks
Frank
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, Frank, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. You would appear to spend over 183 days in the UK in each tax year. You are therefore liable for UK Income Tax on your world wide income. You also receive Irish income under PAYE. That is part of your income for UK tax purposes and the tax payable in Ireland, under the Double Taxation Convention between the two countries which precludes the same income stream being taxed in both jurisdictions, is allowable as a tax credit against your UK tax liability. The Convention does not, however, protect you from difference in rates of taxation. Ireland has exactly the same rule, 183 days, as the UK, as do indeed many other countries. As far as I can see you may not be classed as resident, but if your main domestic residence is there then this might affect your position. I would be inclined to seek advice and guidance from Revenue, Irish Tax and Customs, as to your exact situation and whether you need to make a tax return there. Remember Just Answer is essentially an UK tax advice site. I do hope my answer has been of assistance.
Customer: replied 2 years ago.
Thank you for replying to me, Kieth, and for giving me your opinion on my residency. As this is a complicated area, which can't be addressed adequately through an on-line discussion, I wasn't actually asking for tax advice. What I really need is to speak to someone who knows about the taxation of non-residents, hence the two questions I put to Just Answer (ie where can I find a knowledgeable adviser, and what are their fees likely to be?). Your answer above has suggested a third question: is it possible for me to speak directly with an inspector of taxes in HMRC? I have tried to phone them on 0300(###) ###-####which they advertise on their website, but this has not been successful. Does HMRC have local offices with public access that I could drop into and start a conversation with them?
Are you able to answer those three questions for me, please?
Expert:  bigduckontax replied 2 years ago.
My advice is never, ever, under any circumstances whatsoever, try to communicate with HMRC by telephone. There is far to much chance that the official will get hold of the wrong end of the stick if they can even find the stick at all! Always put your query in writing they you have a hard copy of what has been discussed.
Yes HMRC does have local offices, although in England and Wales they are pretty scarce. In Scotland where I am we have local offices in the two larger towns north and south of mine.
Customer: replied 2 years ago.
Again, thanks Kieth for your advice about speaking directly with HMRC, which I will take on board.How do I find a knowledgeable adviser on residency? What fees would such a firm typically charger for advice and assistance in making a return?Frank
Expert:  bigduckontax replied 2 years ago.
If you go commercially I cannot see you getting much change out of GBP 250 plus VAT. You would do much better to do it yourself my simply asking HMRC. To find an expert you could look on Google; unfortunately Just Answer protocol does not permit me to make personal recommendations. Please be so kind as to rate me before you leave the Just Answer site.
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Customer: replied 2 years ago.
I've rated you Good, Kieth. ThanksFrank
Expert:  bigduckontax replied 2 years ago.
Thank you for your support, Frank.