Dublin Road,
Castleshane, Monaghan,
Co. Monaghan, Republic Of Ireland

T: +353-47-85700
F: +353-47-85666
E: info@clerkinfinancial.com

Taxation in Northern Ireland & UK

Clerkin & Co also provides advice on Northern Ireland taxation compliance. We carry out general compliance work, such as looking after tax affairs throughout the year and ensuring all necessary forms are submitted to the Inland Revenue by the necessary dates.

We can advise on all Personal, Company, Employer/Employee and VAT. Included in this advice would be information on the most effective methods of minimising taxation liabilities.

The main taxes are compared below between Northern Ireland and the Republic of Ireland (It should be noted that ROI tax year-end is 31st December whereas NI tax year-end is still 6th April):

Income Tax
If single in ROI, you are taxed at 41% on income in excess of €36,400. You receive personal tax credits of €1,830 and a further €1,830 if a PAYE worker.
In NI you are taxed at 40% on income in excess of £37,400 (€42,500). You are allowed a Personal allowance of £6,475.(€7,357)

NI may appear better from a tax point of view but when combined with higher rates of National Insurance (PRSI) this advantage is reduced. Also in relation to total income being less than the limits above, income tax liabilities may be lower in ROI.

Whether you are liable to tax in NI or ROI depends mainly on your place of residence, however there are sometimes complex rules with regard to this on which we can offer expert advice.

(see ROI Income Tax section later re new emergency income and health levies in Republic Of Ireland)

Corporation Tax
Since 1999, the legal responsibility for correctly calculating the Corporation Tax liability in NI falls on the company.

Since the NI tax year 06/07, companies in NI are taxed at 21% if profits fall under £300,000 (€450,000) and at 28% if profits are greater than £1,500,000 (€2,250,000). A marginal rate applies if profits fall between these two limits.

Most companies in ROI are taxed at 12.5%. You do however pay tax at 25% on investment and rental income. Your choice of location for your business therefore would depend on your business type.

Capital Gains Tax
In ROI the Capital Gains Tax rate is generally 25%. In NI, there is now a single rate of 18%.

In ROI €1,270 of the gain is exempt whereas £10,100 (€11,477) is exempt in NI. There are various relief’s available on disposals. Our expert advice can help minimise or eliminate your tax liabilities.

Value Added Tax
In ROI Vat registration threshold is €37,500 for the supply of services and €75,000 for the supply of goods. The threshold is £68,000 (€77,272) in NI.

Tax Summary Northern Ireland & UK
Income Tax Inheritance Tax
Benefit in Kind Capital Allowance
Corporation Tax Stamp Duties
Capital Gains Tax  

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Our services:
•  Accounts Preparation / Bookkeeping
•  Annual Audit
•  Taxation – Republic Of Ireland, Northern Ireland
•  Revenue Audits
•  Business Start Up & Company Formations
•  Computer Consultancy & Training
•  Capital & Lump Sum Investments
•  General Insurance
•  Life Assurance & Protection Policies & Savings
•  Pensions
•  Grant Applications
•  Mortgages for Development Commercial & Residential
Registered to carry on audit work and authorised to carry on investment business in the Republic of Ireland by Chartered Accountants Ireland
Principal: Laurence Clerkin, B.Comm., M.A. F.C.A., A.I.T.I, Q.F.A.
© Clerkin & Co 2007. all rights reserved.