Relocation: What to consider before making the move and how to make the most of it!

Thinking of Relocating to or within Ireland for a contract role in 2022?

Then look no further we have an all you need to know guide right here!

One of the biggest expenses we historically processed was relocation expenses but due to the whirlwind we are all living through relocation was the least claimed expense over the year 2020 and has fluctuated somewhat in 2021.

Heres a small guide on what to consider if you are making a move to or within Ireland as a professional contractor.

Things to consider before making your journey

If you are required to relocate for the purpose of a contract position by a distance of 100km or more, you can offest your relocation expenses which can include your initial journey of 100km or more to or within Ireland, and the first three months accommodation costs, any moving costs and if married or in a civil partnership you can also offest your immediate family’s travel costs if travelling at the same time.   

To be able to claim these costs, the travel & arrival dates will need to coincide with your contract start date along with proof of payment for Revenue to accept these as tax deductable expenses.

As mentioned when relocating you can claim for the first 3 months of rent. Please note that mortgage repayments cannot be claimed. In the event of renting or leasing an apartment/room, a copy of the lease agreement with the landlord’s name/ PPS number must be provided with formal proof of payment each month.

Proof of address for your current address and your new address will also be requested.

If travelling from abroad we would recommend to try to be organised and find accomdation before coming over to Ireland, even if it’s a temporary solution for the first ten nights such as a hotel, AirBnB or B&B.

You may be entitled to then avail of the overnight subsistence rate of €147 per night for the first ten nights, which will be claimed as a tax deductible expense through your payroll, for which no receipts are needed. After the first 10 nights the remianing 2 months and 20/21 days will fall under the above conditions and therefore proof of payment will be needed.

Registration in Ireland

If this is your first time to work in Ireland, you will need to obtain a PPSN, a unique reference number to help you access public services, welfare and information in Ireland. This is the equivalent to a national insurance number in the UK.

Once you have confirmed your contract position and have confirmed your date of travel along with arranged your accommodation, we can then assist you with a letter confirming your intent to work as a professional contractor and relocate in Ireland along with confiming the address you will be staying at (even if is temporary). This alongside your contract offer letter or signed contract and Photo ID (in date Passport/ Driving license) will then need to be submitted for your PPS Number application.

Depending on your circumstances and your families circumstances there are a few options to apply for this which is outlined here.   

Taxation:

In Ireland we all pay income tax, Irish Revenue allocate a certain amount of tax credits and cut off each month depending on your residency and personal circumstances; therefore, it will depend on how much you get paid month to month or week to week that will determine the exact percentage of tax you will pay.

For example:

Based on the standard annual tax credits under the set up as a Director Umbrella Company member or PLC owner you may be allocated a yearly tax credit of €3,350 (Personal and Earned income tax credit 2022) and a cut off rate of €36,800 (2022 standard cut off rate), out of this, each month you may be allocated €279.17 (tax credit) and €3,066.67 (cut off rate) depending on your personal circumstances and as determined by Revenue.  The tax credits are used as credit against your earnings, so this reduces the amount of tax you pay.

Any tax credits you do not use in your previous month for example by earning very little one month, may be carried over into the following month so you still get your tax relief owed to you on a real time basis.

This is all managed by your dedicated account manager here at Icon Accounting, as our saying goes you do your job, we’ll do the rest!

Travel to and from work in Ireland

If you will be travelling in and out of the office everyday and using public transport, we can then order you a Taxsaver ticket which can be offset against your earnings as a tax-deductible expense.

When using our services as a professional contractor we have a simple checklist on our bespoke portal that you can order directly from.

Alternatively, if working remotely in Ireland you can potentially avail of the e workers allowance of €3.20 per workday which again can be offset as a tax-deductible expense against your earnings.

If you would like to find out more about moving to Ireland for contract work, or are considering relocating within Ireland for a contract position please get in touch with our team today by emailing info@iconaccounting.ie or calling 01-8077106 to find out more about relocating and the additional value offered at Icon Accounting.