Irish Citizen Tax

[irishpacker]

Hey,

I'm just interested to know what the situation with taxation is with regard to being an Irish citizen in the British Army? How does it work?

I'll be heading to my Main Board soon, so touch wood I'll be going into Sanhurst by the end of the year. Cheers for the advice!

 

[TIGER-MONKEY]

You pay the same tax as everyone else. Being Irish makes no difference to the UK taxman.

 

[irishpacker]

Ha, of course! I didn't mean my question like that! What I was asking was will I be taxed as a UK citizen or do I pay my taxes to the Irish government? How does that system work?? I assume I'll be given the appropriate PPSN number etc.. (or the UK equivilant) so my taxes go to the UK?

 

[REG002]

I can only say that you must be a bit thick but here's the answer to the question. If the UK Government is paying your wages then the tax on that wage goes back to the same Government.

Try not to let the Irish down too much if you do join up!!

 

[irishpacker]

Thats a wee bit harsh now... But yes, I really don't know anything about taxation, I'm a simple Arts student! I know plenty of people who work or make money in other countries but are registered in Ireland so they pay their income taxes here, Obviously I was wrong!

 

[Interceptor]

Well done for sticking you head above the parapet. Enjoy your time in the Army. Don't worry too much about where you come from; tax will be calculated from where you live.

 

[REG002]

Thats a wee bit harsh now... But yes, I really don't know anything about taxation, I'm a simple Arts student!

That's not harsh that's just banter!

 

[Deadreckon]

I know plenty of people who work or make money in other countries but are registered in Ireland so they pay their income taxes here

In order for them to do that legally then they have to remain non-resident in the country they are working in and declare themselves still resident in Ireland. This often requires them to limit they're time in the country they are working in (which for you will be the UK... at least to begin with!). I assume if you're signing up you're not going to be expecting your regiment to release you for over 6 months so you can hop on a plane to remain outside the UK tax domain for the necessary 180+ days it requires to declare yourself non-resident. So regardless of Irish citizenship you will have to content yourself with taking the Queens' shilling and handing an obscene amount of it back to Her Majesties Treasury to fund Gordon Browns next hair brained bailout!

 

[popado]

On a related note, what about cars? I've a car in Dublin which I might be bringing over so do I have to pay an import tax on it? Ironically I originally bought it in London if that makes any difference.

 

[irishpacker]

I know plenty of people who work or make money in other countries but are registered in Ireland so they pay their income taxes here

In order for them to do that legally then they have to remain non-resident in the country they are working in and declare themselves still resident in Ireland. This often requires them to limit they're time in the country they are working in (which for you will be the UK... at least to begin with!). I assume if you're signing up you're not going to be expecting your regiment to release you for over 6 months so you can hop on a plane to remain outside the UK tax domain for the necessary 180+ days it requires to declare yourself non-resident. So regardless of Irish citizenship you will have to content yourself with taking the Queens' shilling and handing an obscene amount of it back to Her Majesties Treasury to fund Gordon Browns next hair brained bailout!

That makes sense. Cheers mate

 

[Deadreckon]

On a related note, what about cars? I've a car in Dublin which I might be bringing over so do I have to pay an import tax on it? Ironically I originally bought it in London if that makes any difference.

Have a look at this to answer your question.

http://www.topgear.com/content/buyersguides/08/3.html

 

[adouglasmhor]

BTW if you pay less tax to the UK than you would have in the Republic the Irish government will want the difference over the last 7 years payed to them when you come back. GF's dad was hit with a bill for 10s of thousands of punts, he only managed to avoid paying it by having an English grandparent , you might not be so lucky.

 

[REG002]

BTW if you pay less tax to the UK than you would have in the Republic the Irish government will want the difference over the last 7 years payed to them when you come back. GF's dad was hit with a bill for 10s of thousands of punts, he only managed to avoid paying it by having an English grandparent , you might not be so lucky.

That's complete bollox.

 

[Killaloe]

Good luck with the main board Irishpacker. If you can get a British National Insurance Number & Tax Code prior to going to Sandhurst it will make things easier for you.

I attach a link on the procedure for getting a NI #

http://www.dwp.gov.uk/lifeevent/benefits/ni_number.asp#applying

Unfortuntately the 0845 number will not work from the South.

Suggest you try the JobCentre plus in Belfast:
Jobs & Benefits office - Shaftesbury Square
Conor Building
107 Great Victoria Street
Belfast
BT2 7AG
Telephone: 028 9054 5500
FAX: 028 9054 5444
E-mail: Southbelfast.jc@delni.gov.uk
Opening Hours
Monday to Wednesday and Friday from 9:00 am to 4:30 pm.

Thursday from 10:00 am to 4:30 pm.

Speak to them, it may be worth coming up to Belfast for the day on the train to see them face to face.

Alternatively give the AFCO a shout at Palace & see of they can assist you.

If you need any more help PM me.

Alternatively I know of a couple of pubs on the Lower Newtownards Road that will sell you a wooden National Insurance Number & Tax Code for £20

 

[sretosf]

If you are currently earning in Ireland then you should save a bit of tax this year. Where you are changing residency each country should only tax you on your income in that State, but each still gives you your full tax allowances for the year.

If you need more info look at the links below or google 'split year residency'.



http://www.hmrc.gov.uk/incometax/tax-arrive-uk.htm

Coming into the UK part way through the year
When you come to the UK part way through a tax year you'll normally only pay tax on income you get after you arrive if:

you come to the UK to stay for at least two years or to take up permanent residence
you weren't ordinarily resident in the UK before you arrived
Otherwise you may have to pay UK tax on your income for the whole year.

Either way, you'll always get your full year's Personal Allowance.

http://www.revenue.ie/en/tax/it/residence.html#section2

Person Emigrating: (resident year of departure; non-resident following year.)
Continue to be regarded as resident up to the date of departure and are liable to pay income tax on all income arising up to that date. Generally, full tax credits are allowable on a cumulative basis.

 

[sretosf]

With regard to the car - sell it. With the strength of the Euro it will be worth a lot more there than it is here. You won't need a car when you first join up anyway!

 

[tmsbry]

I'm from Ireland aswell & I'm starting CIC end of Feb, what you said about the tax situation will that be explained to me in more detail at Catterick or do I need to research it myself

I also have a car, I was thinking of exchanging in the UK as new car prices are cheaper, is this a smart idea or should I try selling it

 

[popado]

You'll get more money for it in Ireland tmsbry. The only problem is the car market is fairly saturated at the moment. I just did a quick search on carzone and there's 550 of my car there, all the same year.

 

[adouglasmhor]

BTW if you pay less tax to the UK than you would have in the Republic the Irish government will want the difference over the last 7 years payed to them when you come back. GF's dad was hit with a bill for 10s of thousands of punts, he only managed to avoid paying it by having an English grandparent , you might not be so lucky.

That's complete bollox.

It is actually true, so shut the **** up rodge. Poles get hit with it too when they go back so I assume it's an EU thing.

 

[sretosf]

I'm from Ireland aswell & I'm starting CIC end of Feb, what you said about the tax situation will that be explained to me in more detail at Catterick or do I need to research it myself

You need to do three things:

a If you have paid tax in Ireland during January / February you will be due all that tax back from the Revenue Commissioners. Contact them and tell them you are emigrating to England, and they should sort this out for you. It goes without saying that you should not tell them that you are joining the British Army for security reasons. All they need to know is that you are emigrating.

b You will most likely pay UK tax in March. As you will get a full set of tax allowances for this year (our tax year ends at the beginning of April) you will be entitled to have all this tax refunded. You will get a P60 from the Army in April showing the March tax you paid - treat the P60 like you would cash, you will need this to get the tax back.

c Get your UK national insurance number asap. The Army will also get you to fill in a 'P46 Employee without a P45'. Your 2009/10 tax will right itself once this has been processed, and you get a correct tax code from HMRC (taxman)

Once you have a national insurance number and have a proper tax code then you should write to your tax office enclosing a copy (not original) of your P60, asking for the tax you paid in March back. They may ask you to complete a tax return - if they do remember you don't have to declare your Irish income on it as you weren't resident here when you earned it.

Hope this helps