Working overseas [from home] for UK company - Corporation Tax implications?

Groovybunny

Hi there.

Our family is relocating to Ireland following my getting agreement from my UK employer, that I could work 3 days from their london office and 2 days from our new home, in the Republic of Ireland.
I would continue to pay UK income tax and NI as the majority of my working time is in the UK.

Following this agreement my partner resigned, and was accepted onto a masters in Ireland. We took our kids out of school and put our house on the market etc - basically began the process of relocation and we move in a couple of weeks.

Last week my employer suddenly declared that due to corporation tax implications, I cant work from the Republic of Ireland as they have no office there.
Does anyone know if this is correct? I am now in an impossible situation as we have passed the point of no return and I may have to resign.

I hope someone can help!

LilElvis

Entirely likely that this is true. Certainly it's going to take up a substantial amount of time for very expensive tax specialists to sort out the possible ramifications and the mechanisms necessary to ensure that your employer isn't going to be exposed. HR and your immediate management were likely unaware of this possibility when they agreed to your remote working.

Groovybunny

LilElvis. That's what I was worried about. Still incredibly frustrating to be told just before we move.

Dox

Wonder if it would work for both sides if you were an employee for 3 days a week in the UK, and provided your services through your own limited company based in Eire? If they want you badly enough, they should be willing to try and help find a solution.

Groovybunny

Thats an interesting idea. I'm not sure how that would actually work in practice. I'm waiting to hear what they suggest as they have at least acknowledged their error...