IR35 and Making the Move to Ireland

Are you ready for the IR35?

Under new legislation, the responsibility and liability of tax deductions will fall to recruiters and organisations. It applies to contractors and temporary workers but will affect all professionals and organisations as the responsibility will fall to them. Failure to ensure compliance will mean heavy fines and penalties. IR35 will impact your work status and tax payments for your current contract and change how organisations engage with you moving forward.

Update March 2020

Update (19th March 2020): Due to the COVID-19 pandemic, the UK government has postponed this controversial tax reform for one year.

What do this mean for me?

If your end client (the organisation you are contracting for), decides you are “outside of IR35”, you will remain self-employed and the IR35 will not impact you. However, if your end client decides to class you “inside IR35”, then you will become an employee for tax purposes and your income will be taxed at source in the same way as a PAYE employee.

How will this decision be made?

HRMC are encouraging organisations to use the approved CEST (Check Employment Status for Tax) tool to make their decisions.

So what now?

We’re slightly (unashamedly), biased, but perhaps a move to Ireland could be the answer?

Projected Growth and High Demand

Exchequer Street Ireland is suffering an extreme shortage of skilled, experienced IT contractors and this is not likely to change for a number of years. The labour market has seen a return to the pre-recession levels of demand across all sectors, but particularly in IT.

Ireland is home to some of the world’s leading tech multi-nationals making it the destination of choice for international tech talent. But there is still a demand here. This pressure to hire talent has seen a spike in salaries, with many IT contractors commanding generous payments for placements.

While we are a resourcing services company, we understand that sometimes, a nudge in the right direction will always be of help. With that in mind, we have started gathering information that might help you make the move to Ireland.

We have started with:

Making the move : Visa requirements and becoming a citizen.
Tax in Ireland : Getting the equivalent of a National Insurance Number, deciding if you need to pay tax or not and general information on the tax system in Ireland.
Education in Ireland : If you are moving with children, we highlight information on the education system here.
Accommodation in Ireland : Ireland is suffering a “housing crisis”, which has been extensively covered by the media. Before making the move, read our best advice for housing in Ireland.
Employment rights : If your spouse is working in Ireland, it’s important to be aware of their employment rights.

We found this page from Contracting Plus super helpful. Jimmy Sheehan and the team are available for any questions you might have.