Irish Revenue have come back saying I should not be charged BIK.
Please see below....
From: Revenue BMW Sligo PAYE [mailto***@******.***]
Sent: 29 July 2015 16:38
To: Doran, Patrick
Subject: FW: Employee Taxation query/PAYE/IC/AH (Ref:15650999)
I refer to our telephone conversation earlier. I realise now that the query submitted by your employer is different to your issue re BIK, see their e mail hereunder.
In relation to Benefit in Kind from 01/01/2004 it is up to the employer to determine if an actual benefit arises and if so there is a charge to PAYE/PRSI & USC here in Ireland, see link to the Employers Guide http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/index.html. I note that the UK employer is processing the payroll from 6th April 2015 so I don’t know the procedure for BIK in the UK is.
As explained to you already there cannot be a charge if a there’s no benefit.
From: Navin-Mealey, Mona
Sent: 11 June 2015 11:02
Cc: Costello, Angela; *****, *****
Subject: Employee Taxation query
I am writing on behalf of an employee. I called your offices and they requested I put my query by email to yourselves.
Employer Name: MPS Westport Limited
Employer Number:(###) ###-####
Employee Name: Patrick Doran
Employee PPS number:(###) ###-####
Patrick is employed by Mps Westport Limited but in January 2015 he transferred to work for our sister site in the UK for a period of 6 months. He has continued to be paid by Westport during this time.
A decision has now been taken to extend his secondment period in the UK and as he will now go beyond the 183 days in the UK.
The UK have taken tax advice and they will now process his payroll (notionally) with effect from 6 April 2015 and pay UK tax on his behalf. Westport will continue to pay Patrick as normal and deduct all relevant taxes, USC, and NI here in Ireland.
The UK have been advised that they will require an E101 completed to allow them to NOT deduct National Insurance (both ER and EE).
Patrick will then need to complete a self assessment taxation form and claim back the excess taxation paid in the UK at the end of the Irish tax year.
Can you please advise the following:
- In accordance with Irish taxation rules – is the above treatment correct?
- I cannot locate an E101 form. Can you please advise if this is the correct form and where I may locate it?
- Do we need to complete any additional documentation?
- Are there tax credits that Patrick should be aware of that cover the UK tax payment?
If you require any further information in order to answer this query please do not hesitate to contact me. My contact details are set out below.
+353 (0) 98 55836
+353 (0) 87 (###) ###-####/p>
Golf Road, Westport, Co. Mayo, Ireland