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You continue to pay him as you do at present deducting Income Tax (IT) and National Insurance (NI) contributions as normal. You should encourage them to send a Form P85 yo their tax office on leaving the UK. HMRC will probably issue a new tax code for you to operate. NI contributions are a minefield. The whole matter is set out here:
but frankly I would be inclined to ask your local Job Centre for advice on NI deductions.
Any IT deducted will be allowed as a tax credit against any Irish tax liability.
If you declare a dividend of say 100 quid you only pay the shareholder 90 leaving him a tax credit to reclaim in Ireland.
I do hope that you have found my reply of assistance..
Well he may have a liability in Ireland, but under the Double Taxation Convention between the two countries the same income stream may only be taxed in one, in this case the UK, so the UK tax deducted is allowed as a tax credit against the Irish liability. In any event the standard rate of IT is the same in both jurisdictions, 20%.
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