Sending Employees to Ireland: An Overview
Companies may send employees to Ireland for a variety of reasons, including posting workers to open a new branch or office, to carry out market research or to work with a business partner based in Ireland.
Multi-national companies can use intra-company transfers to move employees to an Irish subsidiary to fill a vacancy, oversee a project or for training purposes.
Workers from the UK have the right to work and live in Ireland without the need for a visa under the Common Travel Area arrangement which was not affected by the UK leaving the European Union.
Non-EU nationals who have the right to live and work in the UK can also be sent to Ireland by their employer.
By sending employees to Ireland businesses can gain first-hand insight into local markets rather than relying on local agencies or online research. Competitor research is essential for international expansion and having employees in the country can provide invaluable information for your business.
Having company personnel in Ireland will also allow you to build relationships that are beneficial to your business and to a degree that emails and online meetings cannot achieve.
- Sending Employees to Ireland: An Overview
- Legal Considerations: Laws for Sending Employees to Ireland
- Social Security & Taxation of Employees in Ireland
- How to Send Employees to Ireland
- Costs & Savings Associated with Sending Employees to Ireland
- How Long Can UK Employees Stay in Ireland?
- Penalties of Non-Compliance with Irish Obligations When Posting Workers
- How IAS Can Help You Legally Send Employees to Ireland
Legal Considerations: Laws for Sending Employees to Ireland
A UK citizen does not need to apply for a visa or Irish work permits to take up a job in Ireland. Under the CTA agreement, they are entitled to work and live in the country without documentary permission.
The CTA has existed since 1922, and in 2019, the UK and Irish governments signed a Memorandum of Understanding to reaffirm their commitment to the CTA, reasserting the rights of UK and Irish citizens to live, work and study within it.
Employees of a UK company sent to work in Ireland are subject to Irish employment laws Under the mandatory employment laws of the host country employees’ rights on pay, annual leave and working hours are governed by Irish law. As a result, a posted worker from the UK is protected by the full range of Irish employee legislation.
However, if any of the employment terms and conditions in the UK are more favourable than those provided under Irish legislation then those terms and conditions should be maintained for the duration of the posting of your employee. This can relate to income, working hours, annual leave or any other provision under the terms of employment.
The employer is obliged to inform the Workplace Relations Commission (WRC) in Ireland about any employee posted to the country from the UK. Companies and service providers must give the WRC detailed information regarding the posted worker through the Form of Declaration. This information must include the following:
- Name and address of employer
- Name and address of the designated person to liaise with WRC
- Details of the work location of the employee
- Employee name, address and date of birth
- Employee’s social security number
- Job description or title
- Employee’s nationality
- Job start date and projected end date
- Gross weekly pay less any expense payments, board and lodgings
- Total of weekly hours worked in Ireland
When working in Ireland, posted workers can continue to be covered by the social security system in the UK. They can inform HMRC they will only be paying UK National Insurance contributions while working temporarily in Ireland and will not have to pay Irish social security contributions.
If an employee is in Ireland for less than six months they are not classed as a tax resident. For longer employment postings, income tax will be payable on revenue generated, and this is done through the Irish Pay As You Earn system so the employee may need to register with the Irish Revenue Service.
The UK and Ireland have a Double Taxation Treaty, which means employees will receive exemption or credit in the UK for any income tax paid in Ireland.
How to Send Employees to Ireland
If your business wants to send an employee to Ireland there are certain processes that you are required to complete.
You must inform HMRC that you are sending a worker to Ireland. They will advise you if your employee will only be paying UK National Insurance contributions while working abroad.
As an employer, you will need to apply for form CA3822, a certificate confirming the payment of these contributions in the UK.
You should then contact WRC in Ireland and give them details of your employee through the Form of Declaration in line with the information given above.
This allows WRC to ensure that you satisfy all the requirements for the posting of workers from the UK to Ireland. They will also monitor compliance with all the necessary employment terms and conditions..
It can be difficult to find all the necessary information about sending an employee from the UK to Ireland. This is particularly the case since the UK left the EU. As the two countries now have a different relationship in comparison to other European countries, alternative rules apply to posting UK workers to Ireland.
IAS can help you with the process of sending an employee to Ireland. Our in-depth knowledge of the requirements of such a move will allow you to complete each step and provide the right information for your particular situation and business. Contact us on +353 061 518 025 or get in touch online.
Costs & Savings Associated with Sending Employees to Ireland
Unlike other non-EU or non-EEA employees, a UK worker will not require a visa or a work permit to take up a position in Ireland therefore, there is no associated cost.
As the UK and Ireland have a Double Taxation Agreement, the issue of whether Irish payroll tax is payable will depend on how long the UK employee is resident in Ireland. Income tax is payable unless dispensation is obtained for stays between 60 and 183 workdays.
When an employee spends more than 183 workdays in Ireland then tax will be payable.
Workers sent to Ireland who are members of an approved UK pension scheme may be entitled to tax relief on their contributions, subject to certain conditions. Similarly, employers will not pay tax on their contributions to an employee’s pension.
If an employee is expected to remain in Ireland for less than two years there is provision for some expenses connected to the assignment to be reimbursed tax-free. However, tax-free subsistence is limited to just 12 months, any expenses reimbursed thereafter are taxed under Ireland’s payroll system.
Some individuals will be eligible for tax relief of up to 30% of their employment income. This is known as the Special Assignee Relief Programme (SARP) and approval for the scheme has to come from Irish Revenue. Employers must apply for SARP within 30 days of the worker’s arrival in Ireland.
How Long Can UK Employees Stay in Ireland?
UK nationals benefit from the special relationship with Ireland that permits freedom of movement between the two countries and there is no restriction on how long UK workers can remain in Ireland.
However, there will be cost implications for you as the employer in the form of tax and social security contributions payable in Ireland depending on the length of the employee’s stay. If your worker remains in Ireland for over two years then social security contributions may need to switch from the UK to Ireland.
There is not usually a set timescale for a job posting and it is often deemed to be as long as is necessary to complete a specific task or project. If the proposed end date of employment in Ireland for a posted worker needs to be extended, then you as the employer, must submit a new Form of Declaration to WRC with the new projected end date.
Penalties of Non-Compliance with Irish Obligations When Posting Workers
The Form of Declaration must be submitted to the WRC no later than the first day of the employee’s commencement of work in Ireland. It is a criminal offence not to submit the Form of Declaration and failure to do so carries a fine of €5,000 if convicted.
When sending an employee to work in Ireland it is important to consider whether a Permanent Establishment (PE) will be created as a result of their work activities. If a PE is formed then any of its profits could be subject to tax in Ireland.
You should also consider any VAT implications in either the UK or Ireland for cross-border transactions which may result from the activities of your seconded employee.
There are many aspects to take into account when your company is considering sending an employee to another country and the process can be difficult and complex.
Our goal at IAS is to help employers through the process of sending employees to Ireland through our comprehensive range of services and with the help of our employment experts.
With our help, you can be assured that posting an employee to Ireland is done in a manner that is both compliant and cost-effective.
Getting the process right is very important when sending UK employees to Ireland. So if you are finding it confusing or complex contact IAS today so we can support you through our range of professional services, these include document checking and tailored expert advice on your specific situation.
Call us on +353 061 518 025 or get in touch via our contact form online. Our knowledgeable employment specialists will be able to guide and advise you on how to proceed.
Last modified on January 19th, 2024 at 10:25 am
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UK citizens can work remotely in Ireland for a UK company but the worker must be paid through Irish payroll. The company has to apply to Irish Revenue for a PAYE number and pay PRSI for the employee.
When an employee is transferred the original employer is no longer in a relationship with the employee, and the new employer takes over that relationship. During secondment, the employment relationship between employee and employer remains but the employee performs work for the business to which they are seconded.
Despite leaving the EU, the UK remains part of the Single Euro Payments Area (SEPA). This means that employees can use UK IBANs for payment of wages in Euros without the need to open a dedicated Irish bank account.