1. An Irish company does not need an office or company in Northern Ireland to sell products there. 2. The Irish company must ensure its products meet relevant consumer regulations in both jurisdictions. 3. Key considerations for an Irish company selling products in Northern Ireland include liability for defective products, product insurance, VAT obligations, and managing currency exchange risks. 4. InterTradeIreland can provide further advice and assistance on cross-border trade issues.

1. A Simple Guide to
Cross Border Business
October 2009

2. Foreword
Anything you Removing barriers to cross-border trade
and business development plays a key
To address this issue, InterTradeIreland
has developed the First Stop Shop
need to know
part in stimulating demand for goods service to provide practical information
and services, increasing the size of and advice to businesses wishing to
the local market-place and improving trade on a cross-border basis. The
competitiveness North and South. service also provides market intelligence
such as cross-border market information,
about trading
2008 was a challenging year for those trade statistics and sectoral reports to
engaged in cross-border trade. Falling SMEs that need a quick grasp of their
demand was experienced on both sides new target market.
of the border, particularly in sectors
associated with the construction industry. A Simple Guide to Cross Business is
cross-border?
The total value of cross-border trade a key part of the First Stop Shop. It
declined from €3.1bn to €2.8bn. The food has become the first point of reference
and drink products industry remained the for any company seeking to enter the
key sector. cross-border market, offering up-to-
date and user-friendly, comprehensive
However, the potential of cross-border information on questions connected with
trade remains high as research findings doing business in the other jurisdiction.
InterTradeIreland’s First Stop Shop can provide
from a recent InterTradeIreland Gravity The subjects covered, include legal
relevant up to date information in these areas:
Model research project shows.1 For total considerations, taxation and banking
• Legal & Tax Advice manufacturing trade over the period 1998 issues among others.
• Sales & Marketing to 2007, the gap between expected and
If there are questions which the Simple
actual North to South trade was 82%
• Currency & Finance Guide does not answer, InterTradeIreland
(ie, less than 20% of its potential) while
has a Trade Accelerator Voucher to assist
• Procurement for South to North trade the same gap
companies. Under this a business can get
• Cross-border Trade Statistics & Sectoral Reports was 77%. This potential for more trade is
up to €2,000/£1,800 worth of business
consistent across almost all sectors.
advice to deal with cross-border issues.
E: firststopshop@intertradeireland.com This gap between actual and potential The First Stop Shop and the Simple
cross-border trade is confirmed by results Guide to Cross Business are central
T: 028 3083 4100 (048 from Ireland), from InterTradeIreland’s Business Monitor. to companies exploiting new business
Around 40% of businesses throughout opportunities on their doorstep.
and ask for First Stop Shop. the island take part in cross-border trade InterTradeIreland will continue to offer
leaving plenty of untapped business assistance to companies to avail of
opportunities for cross-border trade. these opportunities and create stronger
economic links between North and South
InterTradeIreland’s report, Regulatory through collaborative partnerships in
Barriers to Cross-Border Trade and science technology and innovation, trade
Business, has found that there is a lack of and capability improvement.
awareness among businesses of the many
subtle differences between regulations If you would like any further information
in Ireland and Northern Ireland. This lack on the First Stop Shop or other
of awareness and knowledge can create InterTradeIreland initiatives please
a perception that cross-border trade is a contact us on: 028/048 3083 4100 or
costly or complex activity. info@intertradeireland.com
3
www.intertradeireland.com/firststopshop 1
InterTradeIreland, A gravity model approach to estimating expected volume of North/South Trade (May 2009).

3. Contents
Section Question Page
01 I am based in Ireland and want to sell products into Northern Ireland 07
02 I am based in Ireland and want to sell services into Northern Ireland 15
03 I am based in Ireland and want to buy products from Northern Ireland 23
04 I am based in Ireland and want to buy services from Northern Ireland 29
05 I am based in Ireland and want to establish a presence in Northern Ireland 35
06 I am based in Northern Ireland and want to sell products into Ireland 41
07 I am based in Northern Ireland and want to sell services into Ireland 49
08 I am based in Northern Ireland and want to buy products from Ireland 59
09 I am based in Northern Ireland and want to buy services from Ireland 65
10 I am based in Northern Ireland and want to establish a presence in Ireland 71
11 We are looking at cross-border distributorships or agencies 77
12 We are exploring a cross-border joint venture 83
13 The Debt Collection Legal Process - Republic of Ireland and Northern Ireland 87
Appendix Useful Topics 99

4. Section 01
I am based in Ireland
and want to sell products
into Northern Ireland

5. 1.1 Must I have an office in NI? Regulations visit the following
I am based in Ireland and want to sell products into Northern Ireland
It is not necessary to have an office websites –
in Northern Ireland to facilitate sales www.consumerline.org and the
of goods if the goods are to be sold website of the UK Department of
directly to the purchaser. However, Trade and Industry (Consumer and
if you wish to target a broader Competition Policy) –
spectrum of clients you may wish www.dti.gov.uk/ccp. See also the
to consider establishing a presence NI Department of Enterprise Trade
there. If so, go to Section 5. and Investment website (Consumer
Affairs Section) –
1.2 Must I form a company in NI? www.detini.gov.uk
A Company is not necessary but
if you anticipate profits in the UK 1.6 At what point does the risk
or your venture has an element of pass from me (the seller) to the
risk to it, you may wish to consider purchaser?
ring fencing this within a Company Risk, in terms of loss, is the
structure. The rates of tax in the responsibility that a carrier,
UK must also be considered in borrower, user/purchaser of
determining the route you want to property or goods assumes if there
take. As trade increases, it may is damage or loss. “Passing of
be advisable for tax reasons to Risk” means the point at which the
establish a separate company. buyer will be responsible for the
goods. For example, if goods are
1.3 Do I need a licence to sell delivered by lorry, who bears the
products in NI? loss if the goods are stolen in transit
Not generally, but this depends before they reach the purchaser?
on the type of product to be sold.
For example, a licence would be This issue arises just as much
required for sale of pharmaceuticals. within your own jurisdiction as in a
Specific advice should be taken on cross-border context and is covered
each occasion. by the Sale of Goods legislation,
which is broadly similar in both
1.4 Must I declare my goods at jurisdictions.
Customs? Do I need to complete
Normally, where the seller arranges
export documentation?
delivery to the purchaser, risk will
There is free movement of goods
only pass to the purchaser on
within the EU and the only goods
receipt of delivery. In a cross-
which need to be declared at
border sale, this may therefore
Customs are excisable goods i.e.
mean that risk would only pass to
tobacco, spirits, wines and beer.
the buyer when he receives the
goods in NI.
1.5 Must my product meet certain
regulations? In a cross-border context, it may
You must ensure compliance be wise to consider appointing
with required Consumer/Health & a Distributor in the cross-border
Safety Standards. Specific advice market to ensure risk passes to
should be taken on each occasion the Distributor. As soon as that
but assistance may be obtained Distributor collects goods from your
from websites. For Consumer premises in ROI, the risk passes to
9

6. him. For further definitions, 1.10 What if I am employing someone a new business venture in will depend on the VAT status of
I am based in Ireland and want to sell products into Northern Ireland
see Distributor and Sales Agent in NI to work for me? Northern Ireland, to obtain written your customer. If your customer
(Section 11). To determine which legislation confirmation from your Insurance is VAT registered and the goods
applies (i.e. UK or ROI) it is Company in the Republic of Ireland are being exported to NI for
1.7 What liability do I have for important to establish where the that it will cover your vehicles/ business purposes, effectively
defective products in NI? employee will be carrying out their drivers for business purposes in no VAT need be charged by the
If goods are being sold through a duties. In certain circumstances, Northern Ireland. supplier. However, the customer
Distributor in Northern Ireland, the if your Company is based in ROI must account for the VAT under the
Distributor will generally be required and employs a NI resident to carry 1.13 Are the traffic/vehicle regulations reverse charge mechanism (note
to take on liability for defective out duties in NI, a special scheme the same in NI? that special wording in this regard
products. This would be subject known as a “direct payment While traffic/vehicle regulations must be included on your invoice).
to the Distributor being entitled scheme” must be operated in the are broadly similar, specific advice In this case you will need to verify
to indemnity from the seller for UK and the employee is required should be taken in each instance. your customers VAT status and
those defective products. In such to register and account for PAYE/ For further information on driver keep evidence that the goods have
circumstances, the Distributor National Insurance Contributions in and vehicle licensing in Northern been exported. If the customer is
would deal directly with the buyer the UK. Ireland go to the NI Department of not registered for UK VAT, then Irish
and would in turn be entitled to be Environment website – www.dvlni. VAT must be charged.
compensated by the seller for any Bear in mind that if you employ gov.uk. In certain instances, should
loss arising to the Distributor as someone in NI to work for you, that you wish to avoid the expense of You should also be aware of the
a result of the sellers negligence/ employee can avail of rights under compliance with the traffic/vehicle rules regarding distance selling e.g.
breach of contract. If, however, NI Employment legislation. Specific regulations of a second jurisdiction, selling goods directly to non VAT
goods are sold by you personally legal advice should be taken with it may be wise to consider retaining registered persons by mail order,
or through a Sales Agent, then you regard to the employment contract. a courier or transport agent to catalogues, via the internet etc.
will be liable for defective products While ROI and NI employment deliver your goods within Northern Each EU member state has its own
under Northern Ireland legislation. legislation are broadly similar, Ireland. distance selling thresholds and if
there are specific areas where you exceed these thresholds you
1.8 Do I need to have product liability the legislation differs between the 1.14 Do I need a written contract? are required to register for VAT in
insurance? two jurisdictions e.g. redundancy It is very wise in all instances to that member state and charge VAT
Yes. You should also ensure payments. have a written contract. In cross accordingly.
that the current product liability border sales, it is particularly
insurance policy issued to you 1.11 Is my Employers Liability important to define such matters as The distance selling threshold for
in the Republic of Ireland is not Insurance valid in NI? when risk passes, the liabilities of selling into ROI is €37,500 from 1
restricted to sales within the Your Employer’s Liability Insurance Distributors or Sales Agents etc. It May 2009 (increased from €35,000).
Republic of Ireland. If it is so is most likely NOT valid in NI. is also important to define whether
restricted, you will need to negotiate Specific advice should be taken by the Courts in Northern Ireland or The distance selling threshold for
with your insurance company to you from your Insurance Company. the Republic of Ireland will have selling into UK is £70,000.
ensure that the product liability If employing someone in Northern jurisdiction to resolve legal disputes.
insurance extends to sales into the Ireland, it is essential that the If your exports from the RoI exceed
United Kingdom. employee is covered by insurance 1.15 What are typical payment/credit €635,000 per annum you will be
which applies to Northern Ireland terms? required to complete ROI Intrastat
1.9 In the event that the product is Health & Safety Law. Typical credit terms are 30 days. Returns.
defective at delivery, what do I However, this can vary considerably
need to know about after-sales 1.12 Are my vehicles/drivers insured in practice and depending on the 1.17 Should I invoice in sterling
service in NI? in NI? sector in which you operate. or Euro?
Unless you are selling through Normally, vehicles used for business The first point to note is that, from a
a Distributor, you or your Sales purposes should be specifically 1.16 Do I charge Irish VAT? Must I technical point of view, VAT invoices
Agent will be liable for after-sales insured for such uses. It would register for UK VAT? can be expressed in a foreign
service for that defective product in be wise, prior to undertaking If you are selling goods directly currency but the corresponding
Northern Ireland. from ROI the charging of VAT figures should be shown in Euro.
10 11

7. The invoice must also contain the 1.18 Is it worthwhile opening a sterling 1.20 Can I protect myself again 1.22 Where do I pay my tax?
I am based in Ireland and want to sell products into Northern Ireland
actual VAT amount in Euro. account? exchange rate fluctuation? If you are self-employed in the ROI
Where you are making and receiving Exchange rate risk is an important you will be required each year to
A copy of the invoice must be sterling payments, it is often consideration and should always be submit a tax return by 31st October
kept to show the figures that were advantageous to maintain a sterling actively managed. This is best done following the end of the tax year.
adopted. bank account. This provides the by netting payments and receipts. At this date, you are also required
ability to net currency payments However amounts and timings to pay to the Collector General in
For conversion purposes you against currency receipts, thus rarely match exactly, so forward Limerick the balance of tax you owe
should use the Central Bank rates minimising the number of foreign foreign exchange contracts can be for the tax return you are submitting
which are published in the daily exchange deals that you do. Every used. and also make payment towards
newspapers at the time of supply. foreign exchange deal is subject to the current tax year – known as
a ‘spread’ (the difference between A forward foreign exchange contract preliminary tax.
It is possible to agree an alternative the bank’s buying and selling is a binding contract between two
rate with the Revenue i.e. a prices), so the fewer deals you do parties to buy or sell a specified If you operate through the medium
calendar month exchange system. the less ‘spread’ you pay. amount of foreign currency at of a limited Company in ROI the
Please note the agreed method an agreed rate on or between a payment date for corporation tax
must then be used for all of your Where there is considerable bias specified future date or dates. has become more streamlined and
foreign currency transactions. towards payments or receipts, all small companies (where the
hence minimal netting, a sterling These contracts are offered by all company’s corporation tax liability
Your NI client may prefer to account will provide an excellent the major banks and allow you to for the prior year was < €200,000)
agree a price in sterling and pay audit trail and the ability to convert guarantee a future value for your will be required to have paid either
you in sterling, so that they are currency in larger amounts which sterling receipts, thus completely 90% of their expected corporation
not exposed to exchange rate are liable to attract a better rate of eliminating foreign exchange risk. tax liability for the current period or
fluctuations. If you want to facilitate exchange. they can pay 100% of the prior year
your client, you might agree a It is prudent to compare the spot liability by the 21st of the month
sterling equivalent with your client, 1.19 How do I open a sterling account? price (i.e. the exchange rate now) prior to the end of their accounting
either on the invoice or as part of The most convenient way to and the forward market price (i.e. date to the Collector General.
a separate contract or agreement. open a sterling account will be the price that the bank will commit
The disadvantage of this is that via your existing bankers as to offering you at a point in the From the 14 October 2008 if the
you then assume the exposure to this will minimise the amount future) before agreeing any deal. company is a large company
exchange rate fluctuation. of documentation that you will (where the company’s corporation
be required to produce to meet 1.21 How can I ensure I get paid? tax liability for the prior year was
Some firms will state on their legislative requirements. Your It is preferable to insist on “cash > €200,000) then the payment
invoices that, should client existing relationship manager will be on delivery”. If you cannot get is due in instalments. The First
companies wish to settle the invoice familiar with your needs and may payment on delivery and the Instalment should be 50% of
in sterling, they should contact their also be holding security or deeds to purchasers subsequently defaults Corporation Tax liability in the
accounts department on the day of facilitate overdraft or loan facilities on payment then it would be preceding accounting period or
settlement to agree a suitable rate which may be extendible to your advisable to retain the services 45% of Corporation Tax liability
of exchange on that day. new account. of a Solicitor/Debt Collection in the current accounting period
Agency within Northern Ireland to due by 21st date of the sixth
Do not forget to consider your own That said, there is nothing to stop collect payment. While there are month prior to year end. The
circumstances and whether or not it you using another bank specifically circumstances where it would be Second Instalment is due payable
would suit you to receive sterling at for your foreign currency business possible to secure judgment in on the 21st date of the eleventh
a certain point in time. and some account holders prefer to the Republic of Ireland (where the month of the accounting period.
shop around and form a secondary contract may have been made), it An amount payable will bring the
banking relationship. is advisable to secure judgment in total preliminary tax paid to 90%
Northern Ireland as it will in turn be Corporation Tax liability for current
Sterling accounts can be domiciled easier to enforce an NI Judgment accounting period.
in ROI without the need to approach against an NI Debtor.
a bank in NI.
12 13

8. The balancing payment of Tax in this instance is paid on 31 Section 02
Corporation Tax for all companies January and 31 July of each year
is due to be paid to the Collector
General by the 21st of the eight
month after the year end.
with January being the time for
paying the balance of tax for the
previous tax year and also the
I am based in Ireland
If you also intend forming a
company in NI, tax will have to be
1st payment on account for the
current tax year. The July payment
is the 2nd payment on account for
and want to sell services
paid to the Collector of Taxes in
Shipley, Bradford. UK corporation
tax is generally payable 9 months
that same tax year. Payments on
account are calculated at 50% of
the previous year’s tax liability.
into Northern Ireland
and 1 day after the Company’s year
end, though special rules apply to Again credit will be available in
large companies where payments on Ireland for any UK tax paid.
account must be made.
Payments on account for a large
company are made quarterly with
the first payment due 6 months 14
days after the start of the accounting
period. This payment should equal
25% of the estimated profits at that
date. The second quarterly payment
should be for 50% of the estimated
profits and the third payment for
75% of the estimated profits with
a final payment due 3 months
14 days after the end of the
accounting period.
If you open a branch in NI, UK
corporation tax will be payable in
respect of branch profits. Credit
will be given against the Irish tax
in respect of UK tax suffered but
it is restricted to the lower of the
two taxes.
If you open an establishment in
NI but not through the medium of
a Company you will come within
the self assessment arrangements
and will be required to submit a
UK tax return by 31 October (for
manual returns) or 31 January (for
online returns) following the end of
the tax year (5 April) and pay any
tax becoming due to the Collector
of Taxes.
14

9. 2.1 Must I have an office in NI? service, and you will be liable for
I am based in Ireland and want to sell services into Northern Ireland
It is not necessary to have an office sub-standard work provided in NI.
in Northern Ireland to facilitate a Note that NI law will apply.
supply of services. However, if you
wish to target a broader spectrum 2.6 Do I need professional/trade/
of clients you may wish to consider indemnity insurance?
establishing a presence there. If so, Professional/Trade Indemnity
go to Section 5. Insurance is an insurance policy
which provides indemnity to you
2.2 Must I form a company in NI? the Service Provider by your
A Company is not necessary but Insurance Company for Breach of
if you anticipate profits in the UK Contract. That is, in the event that
or your venture has an element of you, the service provider, provide
risk to it, you may wish to consider a substandard service by which
ring fencing this within a Company the Service Receiver sustains
structure. The rates of tax in the loss, then the insurance company
UK must also be considered in guarantees to pay any loss which
determining the route you want to the service receiver has suffered.
take. As trade increases, it may This is a service insurance which
be advisable for tax reasons to should specifically be taken out in
establish a separate company. Northern Ireland and you will be
required to take out this insurance
2.3 Do I need a licence to sell my over and above the professional
services in NI? indemnity insurance which you may
This will depend on the type of have in the Republic of Ireland for
service to be sold. For example, services provided in the Republic of
if selling financial services it would Ireland. Again, you should check
be necessary for you to consult the with your Insurance Broker as to
Financial Services Authority (FSA). the adequacy of your insurance for
Specific advice should be taken on provision of services in Northern
each occasion. Ireland.
2.4 Must my services adhere to 2.7 What if I am employing someone
certain regulations? in NI to work for me?
This will depend on the type of To determine which legislation
service being sold. For further applies (i.e. UK or ROI) it is
information on regulations which important to establish where the
may apply go to – employee will be carrying out their
www.businesslink.gov.uk. duties. In certain circumstances,
Specific advice should be taken on if your Company is based in ROI
each occasion. and employs a NI resident to
carry out duties in NI, a special
2.5 What liability do I have for scheme known as a ‘direct payment
substandard work in NI? scheme’ must be operated in the
Just as you would be liable for UK and the employee is required
substandard work provided in ROI, to register and account for PAYE/
if undertaking services in Northern National Insurance Contributions in
Ireland, you are bound by contract the UK.
to ensure the provision of a proper
17

10. Bear in mind that if you employ instances, should you wish to Services such as consultancy/ Please note the agreed method
I am based in Ireland and want to sell services into Northern Ireland
someone in NI to work for you, that avoid the expense of compliance data input etc. are fourth schedule must then be used for all of your
employee can avail of rights under NI with the traffic/vehicle regulations services and can be zero rated if foreign currency transactions.
Employment legislation. Specific legal of a second jurisdiction, it may be your customer is VAT registered
advice should be taken with regard wise to consider retaining a courier in the UK. In this instance the Your NI client may prefer to
to the employment contract. While or transport agent to deliver your customer will account for the UK agree a price in sterling and pay
ROI and NI employment legislation goods within Northern Ireland. VAT. you in sterling, so that they are
are broadly similar, there are specific not exposed to exchange rate
areas where the legislation differs 2.11 Do I need a written contract? Services relating to land take place fluctuations. If you want to facilitate
between the two jurisdictions e.g. It is very wise in all instances to where the specific land is situated your client, you might agree a
redundancy payments. have a written contract. In cross- however there is an extension to the sterling equivalent with your client,
border services, it is particularly reverse charge rule if the supplier either on the invoice or as part of
2.8 Is my Employers Liability important to define whether the is based outside the UK and the a separate contract or agreement.
Insurance valid in NI? Courts in Northern Ireland or customer receives the service for The disadvantage of this is that
It is more than likely that your the Republic of Ireland will have business purposes in the UK. you then assume the exposure to
Employers Liability Insurance issued jurisdiction to resolve legal disputes. exchange rate fluctuation.
in the Republic of Ireland will NOT However please note that this is a
be valid in respect of services 2.12 What are typical payment/credit highly complex area and you should Some firms will state on their
provided by them for you in NI. It terms? seek professional advice specific to invoices that, should client
is also important to note that in NI Typical credit terms are 30 days. your own circumstances. companies wish to settle the invoice
(except for “one man” companies) However, this can vary considerably in sterling, they should contact their
Employers Liability Insurance is in practice and depending on the Information can also be found accounts department on the day of
compulsory. Consult with your sector in which you operate. on the Revenue Commissioners settlement to agree a suitable rate
insurance provider. website at www.revenue.ie and of exchange on that day.
2.13 Do I charge Irish VAT? Must I at the HM Revenue & Customs
2.9 Are my vehicles/drivers insured register for UK VAT? Are there website at www.hmrc.gov.uk. Do not forget to consider your own
in NI? special rules for services? circumstances and whether or not it
Normally, vehicles used for business There are special rules that apply 2.14 Should I invoice in sterling or would suit you to receive sterling at
purposes should be specifically to VAT in respect of services and euro? a certain point in time.
insured for such uses. It would the charge to VAT will depend on The first point to note is that, from a
be wise, prior to undertaking the type of service supplied and technical point of view, VAT invoices 2.15 Is it worthwhile opening a sterling
a new business venture in also the deemed place of supply. can be expressed in a foreign account?
Northern Ireland, to obtain written In some instances, the VAT charge currency but the corresponding Where you are making and receiving
confirmation from your Insurance arises where the customer is based figures should be shown in Euro. sterling payments, it is often
Company in the Republic of Ireland and the customer must account for The invoice must also contain the advantageous to maintain a sterling
that it will cover your vehicles/ the VAT under the Reverse Charge actual VAT amount in Euro. bank account. This provides the
drivers for business purposes in Mechanism. For other services, ability to net currency payments
Northern Ireland. however, the place of supply is A copy of the invoice must be against currency receipts, thus
where the supplier is based. kept to show the figures that were minimising the number of foreign
2.10 Are the traffic/vehicle regulations adopted. exchange deals that you do. Every
the same in NI? There is a commonly held belief foreign exchange deal is subject to
While traffic/vehicle regulations that just because a customer is For conversion purposes you a ‘spread’ (the difference between
are broadly similar, specific advice registered for VAT, the service should use the Central Bank rates the bank’s buying and selling
should be taken in each instance. supplied should be zero-rated. This which are published in the daily prices), so the fewer deals you do
For further information on driver is NOT always the case, and you newspapers at the time of supply. the less ‘spread’ you pay.
and vehicle licensing in Northern should seek professional advice
Ireland go to the NI Department of regarding the rate of VAT to be It is possible to agree an alternative Where there is considerable bias
Environment website – charged in respect of the services rate with the Revenue i.e. a towards payments or receipts,
www.dvlni.gov.uk. In certain you supply. calendar month exchange system.
18 19

11. hence minimal netting, a sterling These contracts are offered by all payment date for corporation tax If you open a branch in NI, UK
I am based in ROI and want to sell products into NI
account will provide an excellent the major banks and allow you to has become more streamlined and corporation tax will be payable in
audit trail and the ability to convert guarantee a future value for your all small companies (where the respect of branch profits. Credit
currency in larger amounts which sterling receipts, thus completely company’s corporation tax liability will be given against the Irish tax in
are liable to attract a better rate of eliminating foreign exchange risk. for the prior year was < €200,000) respect of UK tax suffered but it is
exchange. will be required to have paid either restricted to the lower of the two
It is prudent to compare the spot 90% of their expected corporation taxes.
2.16 How do I open a sterling account? price (i.e. the exchange rate now) tax liability for the current period or
The most convenient way to open and the forward market price (i.e. they can pay 100% of the prior year If you open an establishment in NI
a sterling account will be via your the price that the bank will commit liability by the 21st of the month prior but not through the medium of a
existing bankers as this will minimise to offering you at a point in the to the end of their accounting date to Company you will come within the
the amount of documentation that future) before agreeing any deal. the Collector General. self assessment arrangements and
you will be required to produce to will be required to submit a UK tax
meet legislative requirements. Your 2.18 How can I ensure I get paid? From the 14 October 2008 if the return by 31 October (for manual
existing relationship manager will be It is preferable to insist on “cash company is a large company returns) or 31 January (for online
familiar with your needs and may on delivery”. If you cannot get (where the company’s corporation returns) following the end of the
also be holding security or deeds to payment on provision of the tax liability for the prior year was tax year (5 April) and pay any tax
facilitate overdraft or loan facilities service and the service receiver > €200,000) then the payment is due becoming due to the Collector of
which may be extendible to your subsequently defaults on payment, in instalments. The First Instalment Taxes.
new account. then it would be advisable to should be 50% of Corporation Tax
retain the services of a Solicitor/ liability in the preceding accounting Tax in this instance is paid on 31
That said, there is nothing to stop Debt Collection Agency within period or 45% of Corporation Tax January and 31 July of each year with
you using another bank specifically Northern Ireland to collect payment liability in the current accounting January being the time for paying
for your foreign currency business should your client default payment period due by 21st date of the sixth the balance of tax for the previous
and some account holders prefer to in due course. While there are month months prior to year end. The year and also the 1st payment on
shop around and form a secondary circumstances where it would be Second Instalment is due payable account for the current tax year. The
banking relationship. possible to secure judgment in on the 21st date of the eleventh July payment is the 2nd payment on
the Republic of Ireland (where the month of the accounting period account for that tax year. Payments
Sterling accounts can be domiciled contract may have been made), it an amount payable will bring the on account are calculated at 50% of
in ROI without the need to approach is advisable to secure judgment in total preliminary tax paid to 90% the previous year’s tax liability.
a bank in NI. Northern Ireland as it will in turn be Corporation Tax liability for current
easier to enforce an NI Judgment accounting period. Credit will be given in Ireland for any
2.17 Can I protect myself against against an NI Debtor. UK tax paid.
exchange rate fluctuation? The balancing payment of
Exchange rate risk is an important 2.19 Where do I pay my tax? Corporation Tax for all companies 2.20 Is there Professional Services
consideration and should always be If you are self-employed in the ROI is due to be paid to the Collector Withholding Tax in NI?
actively managed. This is best done you will be required each year to General by the 21st of the eighth Irish Income Tax, at the standard rate,
by netting payments and receipts. submit a tax return by 31st October month after the year end. is deducted from payments made for
However amounts and timings rarely following the end of the tax year. Professional Services by Government
match exactly, so forward foreign At this date, you are also required If you are deemed to be providing Departments, state Bodies, Local
exchange contracts can be used. to pay to the Collector General in a professional service in a close Authorities etc. This is known as
Limerick the balance of tax you owe company then you may be liable to Professional Services Withholding Tax
A forward foreign exchange contract for the tax return you are submitting an additional surcharge on certain (“PSWT”).
is a binding contract between two and also make payment towards undistributed income, it is important
parties to buy or sell a specified the current tax year – known as to seek advice to determine if Services considered as Professional
amount of foreign currency at preliminary tax. you fall within the definitions of Services are medical, dental,
an agreed rate on or between a a professional service before veterinary, architectural, engineering,
specified future date or dates. If you operate through the medium commencing trade. accountancy, consultancy, legal etc.
of a limited Company in ROI the
20 21

12. Non-resident businesses supplying Section 03
“Professional Services” to
Government Departments etc will
be liable to PSWT. If no other Irish
taxes (ie Income Tax or Corporation
I am based in Ireland
Tax) are due then a refund of PSWT
can be obtained on application to
the Revenue Commissioners.
and want to buy products
There is no professional services
withholding tax in the UK. The
from Northern Ireland
only type of withholding tax that
applies in NI is in relation to the
construction industry.
The Construction Industry Scheme
(CIS) sets out the rules for how
payments to subcontractors for
construction work must be made.
These payments may be made
gross in some circumstances or tax
at 20% or 30% may be deducted
from payments net of VAT.
As the amount of tax if any to be
applied to payments is dependant
on the subcontractors own status
with HMRC the principal contractor
has an obligation to verify the
subcontractors details before
making any payments.
This is a very complex area and
specific professional advice should
be sought.
22

13. 3.1 Are there any Customs issues to to make payment when no foreign
I am based in Ireland and want to buy products from Northern Ireland
be aware of? currency account exists, i.e. for one
There is free movement of goods off transactions. A fee is usually
within the EU and the only goods payable for the purchase of a draft.
which need to be declared at
Customs are excisable goods e.g. The most secure payment method
tobacco, spirits, wines and beer. is an electronic bank–to-bank
transfer. Whilst normally more
Also please note that excisable expensive than the previous
goods are imported by appointing a methods it provides cleared funds
REDS Agent. to the recipient at a known value
date and ensures safe receipt. This
Should your imports from NI exceed is especially useful where goods
€191,000 per annum you will need are dispatched upon receipt of
to submit RoI Intrastat returns. payment.
3.2 What are typical payment/credit 3.4 What currency should I pay my
terms? supplier in?
Typical credit terms are 30 days. There is no definitive answer to this
However, this can vary considerably as individual circumstances differ.
in practice and depending on the However, you should endeavour to
sector in which you operate. pay in the currency most suitable
to your needs and reach agreement
3.3 How do I pay my supplier? with your supplier accordingly.
The simplest and most cost
effective way of effecting payment If you wish to resell your purchases
to suppliers is usually to write a in euro, then buying in euro
foreign currency cheque. This is would probably be most suitable
where having a foreign currency as this would eliminate your
account really comes into its own foreign exchange risk all together.
as it avoids having to arrange Effectively, the risk is passed back
electronic transfers or the purchase to the NI supplier.
of a draft from your bank. The
foreign currency account can be If you have a surplus of sterling you
either funded by currency receipts might wish to pay the NI supplier in
or periodic currency purchases from sterling.
your bank. Currency purchases can
usually be made by telephone or In all cases, it is important to get
internet dealing. the best value for money, so whilst
it may be convenient to pay an NI
Whilst the simplest method of supplier in euro, it is vital that this
paying is by cheque writing, there convenience is not out-weighed by
are other methods available for one a price disadvantage. It could be
off transactions or where additional more cost efficient to manage the
payment security is required. Banks foreign exchange risk yourself if
will sell foreign currency drafts to the supplier has loaded his price to
their client’s, however these offer cover his risk, as is often the case.
little advantage from the purchasers
perspective other than an ability
25

14. 3.5 Is it worthwhile opening a sterling 3.7 Who is responsible for VAT? 3.9 What if the goods turn out to be
I am based in Ireland and want to buy products from Northern Ireland
account? If you are VAT registered in ROI and defective and the vendor will not
Where you are making and receiving you are purchasing goods from a repair/replace?
sterling payments, it is often UK VAT-registered person and the If the goods are defective, because
advantageous to maintain a sterling goods are to be exported to you in the sale will have occurred within
bank account. This provides the ROI for the purposes of your trade, NI, in the normal course the buyer
ability to net currency payments the UK entity will take a note of your will sue the seller in the Northern
against currency receipts, thus VAT number and business address, Ireland Courts i.e. where the
minimising the number of foreign which they must then verify with HM contract occurred. Even if the
exchange deals that you do. Every Revenue & Customs (HMRC). Once contract occurred in ROI (e.g. where
foreign exchange deal is subject to HMRC confirm the VAT details, the the seller from NI sold the products
a ‘spread’ (the difference between UK entity may zero rate the supply in ROI through a Sales Agent in
the bank’s buying and selling of goods to you. ROI) it may still be more appropriate
prices), so the fewer deals you do to sue the seller in NI as it would
the less ‘spread’ you pay. You will then account for the VAT on be easier to enforce an NI judgment
the goods under the reverse charge against an NI seller. There are,
Where there is considerable bias mechanism i.e. you will charge however, circumstances where
towards payments or receipts, yourself Irish VAT on the goods you it may only be possible to issue
hence minimal netting, a sterling receive and provided the goods proceedings in ROI where witnesses
account will provide an excellent are for the purpose of your taxable in ROI are not compellable to
audit trail and the ability to convert trade, you will also be able to claim attend Courts in NI to prove the
currency in larger amounts which a deduction for this VAT. circumstances of the contract.
are liable to attract a better rate of
exchange. 3.8 When do I assume the risk for the
goods?
3.6 How do I open a sterling account? Normally, where the seller arranges
The most convenient way to delivery to the purchaser, risk will
open a sterling account will be only pass to the purchaser on
via your existing bankers as receipt of delivery. In a cross-
this will minimise the amount border sale, this may therefore
of documentation that you will mean that risk would only pass to
be required to produce to meet the buyer when he receives the
legislative requirements. Your goods in ROI. It would be to the
existing relationship manager will be buyers benefit if risk only passed to
familiar with your needs and may him on receipt of the goods in ROI.
also be holding security or deeds to For example, if risk passed to the
facilitate overdraft or loan facilities buyer on collection of the goods in
which may be extendible to your NI and the goods were damaged in
new account. transit in NI, then the buyer would
be obliged to ensure that he was
That said, there is nothing to stop properly insured for transit of those
you using another bank specifically goods. Often, the contract will
for your foreign currency business define at which point risk passes.
and some account holders prefer to A seller (who generally draws up
shop around and form a secondary the contract) will however want
banking relationship. to ensure that risk passes at the
earliest point. Therefore, a buyer
Sterling accounts can be domiciled should ensure to read the Contract
in ROI without the need to approach of Sale carefully.
26 a bank in NI. 27

15. Section 04
I am based in Ireland
and want to buy services
from Northern Ireland

16. 4.1 What are typical payment/credit 4.3 What currency should I pay my
I am based in Ireland and want to buy services from Northern Ireland
terms? supplier in?
Typical credit terms are 30 days. There is no definitive answer to this
However, this can vary considerably as individual circumstances differ.
in practice and depending on the However, you should endeavour to
sector in which you operate. pay in the currency most suitable to
your needs and negotiate with the
4.2 How do I pay my supplier? supplier accordingly.
The simplest and most cost
effective way of effecting payment If you have a surplus of sterling
to suppliers is usually to write a you might wish to pay the Northern
foreign currency cheque. This is Ireland supplier in sterling.
where having a foreign currency
account really comes into its own In all cases, it is important to get
as it avoids having to arrange the best value for money, so whilst
electronic transfers or the purchase it may be convenient to pay a
of a draft from your bank. The Northern Ireland supplier in euro,
foreign currency account can be it is vital that this convenience
either funded by currency receipts is not out-weighed by a price
or periodic currency purchases from disadvantage. It could be more
your bank. Currency purchases can cost efficient to manage the
usually be made by telephone or foreign exchange risk yourself if
internet dealing. the supplier has loaded his price to
cover his risk, as is often the case.
Whilst the simplest method of
paying is by cheque writing, there 4.4 Is it worthwhile opening a sterling
are other methods available for one account?
off transactions or where additional Where you are making and receiving
payment security is required. Banks sterling payments, it is often
will sell foreign currency drafts to advantageous to maintain a sterling
their client’s, however these offer bank account. This provides the
little advantage from the purchasers ability to net currency payments
perspective other than an ability against currency receipts, thus
to make payment when no foreign minimising the number of foreign
currency account exists, i.e. for one exchange deals that you do. Every
off transactions. A fee is usually foreign exchange deal is subject to
payable for the purchase of a draft. a ‘spread’ (the difference between
the bank’s buying and selling
The most secure payment method prices), so the fewer deals you do
is an electronic bank to bank the less ‘spread’ you pay.
transfer. Whilst normally more
expensive than the previous Where there is considerable bias
methods it provides cleared funds towards payments or receipts,
to the recipient at a known value hence minimal netting, a sterling
date and ensures safe receipt. This account will provide an excellent
is especially useful where goods audit trail and the ability to convert
are dispatched upon receipt of currency in larger amounts which
payment. are liable to attract a better rate of
exchange.
31

17. 4.5 How do I open a However please note that this is Ireland (as a requirement of
I am based in Ireland and want to buy services from Northern Ireland
sterling account? a highly complex area and you membership of the Northern Ireland
The most convenient way to open should seek professional advice Law Society) is obliged to have
a sterling account will be via regarding the VAT implications of Professional Indemnity Insurance
your existing bankers as this the services you are acquiring. in Northern Ireland. If in doubt, you
will minimise the amount of Further information can be found should request the service provider
documentation that you will be on the Revenue’s website at to confirm that he has Professional
required to produce to meet www.revenue.ie and click on Indemnity Insurance for his services
legislative requirements. Your Leaflets & Guides, then VAT and in the jurisdiction in which he
existing relationship manager will be then Guide to VAT 2008 – see provides those services. If the
familiar with your needs and may Chapter 4. Northern Ireland service provider is
also be holding security or deeds to providing those services in Ireland,
facilitate overdraft or loan facilities 4.7 What if the service is then it is important to ascertain
which may be extendible to your substandard? that the Northern Ireland service
new account. If the service is provided by the provider has professional indemnity
Northern Ireland service provider in to provide services in Ireland.
That said, there is nothing to stop Northern Ireland, you would issue
you using another bank specifically proceedings against the service
for your foreign currency business provider in Northern Ireland e.g.
and some account holders prefer to where an architect draws up plans
shop around and form a secondary in his Northern Ireland office for
banking relationship. your house in Ireland. If the service
is provided by the Northern Ireland
Sterling accounts can be domiciled service provider in Ireland, you
in Ireland without the need to would issue proceedings against
approach a bank in Northern the Northern Ireland service
Ireland. provider in Ireland e.g. a Northern
Ireland builder constructing your
4.6 Who is responsible for VAT? house in Ireland.
The rules relating to VAT on services
are different (and more complex) 4.8 Is it necessary for the service
than those relating to goods. provider in Northern Ireland
to have professional/trade
The charge to VAT will depend on indemnity insurance?
the type of service supplied. In While it is not compulsory in
some instances, the VAT charge either jurisdiction that service
arises where the customer is based providers have Professional/Trade
and the customer must account for Indemnity Insurance, it is generally
the VAT. However, for other services, a requirement of membership
the place of supply is where the of professional organisations.
supplier is based, and the supplier For example, just as a Solicitor
must charge VAT on the supply. in Ireland (as a requirement of
Examples of services which can be membership of the Law Society
zero rated if the customer is VAT of Ireland) is required to have
registered are consultancy/data Professional Indemnity Insurance
input services. within Ireland, a Solicitor in Northern
32 33

18. Section 05
I am based in Ireland
& want to establish
a presence in
Northern Ireland

19. 5.1 Are there any advantages to my encountered when establishing
I am based in Ireland and want establish a presence in Northern Ireland
establishing a presence in NI? his initial presence in ROI. For
The issue of establishing a presence example, it will be necessary to
in the other jurisdiction is generally take on the expense of a lease/
more relevant to service providers purchase of a premises, building
rather than to sellers of goods. insurance, electricity, telephone
Sellers of goods can manufacture supply, payment of commercial
or procure their products within ROI rates and other related expenses.
and establish a satisfactory means For assistance on “start-ups” within
of delivery of those goods into NI. Northern Ireland, visit Enterprise NI
The goods may be sold through at www.enterpriseni.com or Invest
shops within NI and therefore NI at www.investni.com.
the origin of the manufacture of
those goods is not that important. As regards tax, if you choose to
However, a service provider will be operate as a sole trader in the UK,
providing a personal service and, your business is chargeable to
as such, his presence and identity UK tax and you must also make a
to the client are that bit more return of this income to the Revenue
important. The main advantage Commissioners. However, double
of establishing a presence in NI is taxation relief will be available.
more direct access to that market.
Where you don’t establish an Where you operate as a trading
actual presence, you are relying company, there is an exposure to
on the integrity of sales agents, a higher rate of tax as ROI trading
distributors and couriers/transport companies are taxed at 12.5%
agents. It is difficult sometimes to whereas UK trading companies are
convince buyers/clients that you are generally taxed at 21% for small
in a position to provide an effective companies and at 28% for large
service within that jurisdiction where companies.
you do not actually have a presence
in that jurisdiction. 5.3 Should I open a branch or a
subsidiary?
There may be wider opportunities For clarification purposes, a
for grant aid depending on branch is merely an extension of
your business sector. There are a company, whereas a subsidiary
also some attractive tax saving is a legal entity in its own right. In
methods available in the UK, such the UK, the term branch has been
as generous capital allowances. superseded by the term “permanent
Professional tax advisers in establishment”.
Northern Ireland should be able to
advise on these issues. A Limited Liability Company
incorporated in the Republic of
5.2 Are there any disadvantages to Ireland may wish to establish a
my establishing a presence in NI? branch in Northern Ireland. This
An ROI business person deciding is facilitated under European Law
to establish a presence in NI which requires that certain filings
will go through almost the very must be made by the Republic
same business start-up expenses of Ireland Company with the
which he would have originally Companies Office in Northern
37

20. Ireland. It is important to bear in the conduct of the business then Whether you choose to operate via
I am based in Ireland and want establish a presence in Northern Ireland
mind that a “branch” in legal terms it is NewCo that will be involved in a subsidiary company, a branch
only applies to Corporations e.g. the legal proceedings not Company or as a sole trader, remember
limited liability companies. So, for A. Therefore, in terms of limiting to register with HM Revenue &
instance, a partnership or a sole the risk for the parent company Customs on time to avoid late
trader would not, in the legal sense, in establishing a new business in registration penalties.
establish a “branch” across the a foreign jurisdiction, there may
Border. Therefore it is only in the well be practical reasons to use If you choose to establish a
context of Corporations that exists a subsidiary as opposed to a presence in the UK, registration for
a requirement for filing information branch. If a Company merely has VAT must be considered but you
and details with the Companies a branch the Company itself is are entitled to the same registration
Office in Northern Ireland. From exposed to all legal liability for the thresholds in the UK as an ordinary
a legal viewpoint a branch is not actions of the foreign branch and UK business. If you exceed this
a separate legal entity from the losses accumulated by that branch. threshold, you must register for VAT
Company that established that By having a separate Company within 30 days.
branch. To take an example, we (subsidiary) such risks and losses
could have a Republic of Ireland can be limited to that Subsidiary 5.5 Can we be taxed twice?
incorporated Company with a and ordinarily the Parent Company If a UK subsidiary is formed its
branch Office in Belfast. The legal should be protected. It should be profits will be liable to corporation
entity doing business in Belfast is noted, however, that the decision tax in the UK.
the Republic of Ireland Company. whether to establish a branch or
It just happens to have an office in a subsidiary tends to be primarily If a permanent establishment (or
Belfast. informed by the tax implications. branch) is formed, the profits of that
For more on tax issues, go to establishment will be taxed in the
On the other hand a subsidiary is Section 5.5. UK, but will also be liable to tax in
a completely separate legal entity Ireland. However, double taxation
from the parent company. Once 5.4 What formalities must we relief will be given in respect of the
again, subsidiaries only apply to undertake? element of profits taxed twice.
Corporations e.g. Limited Liability It will be necessary to decide
Companies) as opposed to sole whether you propose to trade as
traders or partnerships. To take an a Sole Trader/Partnership or as a
example, Company A is established Limited Liability Company.
and trades in the Republic of
Ireland and decides to set up a If you are operating via a company,
new business in Belfast. Rather regardless of whether the trading
than merely establish a branch, is carried on via a subsidiary
they decide to establish a separate or a permanent establishment,
Northern Ireland Company to there is a requirement of the
conduct the business on their Companies Registry (www.detini.
behalf. In the normal course gov.uk/cgi-bin/get_builder_
the new Company, NewCo, is page?page=1966&site=7) to
incorporated in Northern Ireland register the entity on the external
but its shareholder is Company companies listing using form
A. As such, Company A owns all BR1. A charge applies. Annual
of NewCo. The important legal accounts must also be submitted
distinction is that the business to Companies Registry in respect of
being conducted in Northern Ireland subsidiaries.
is conducted by NewCo and if a
legal dispute arose in respect of
38 39

21. Section 06
I am based in Northern
Ireland and want to sell
products into Ireland

22. 6.1 Must I have an office in ROI? 6.5 Must my product meet certain
I am based in Northern Ireland and want to sell products into Ireland
It is not necessary to have an office regulations?
in ROI to facilitate sales of goods You must ensure compliance
if the goods are to be sold directly with required Consumer/Health &
to the purchaser. However, if you Safety Standards. Specific advice
wish to target a broader spectrum should be taken on each occasion
of clients you may wish to consider but assistance may be obtained
establishing a presence there. If so, from websites. For Consumer
go to Section 10. Regulations visit the following
websites –
6.2 Must I form a Company in ROI?
A Company is not necessary but www.consumerassocation.ie
if you anticipate profits in the ROI Consumer Association of Ireland
or your venture has an element of www.fsai.ie
risk to it you may wish to consider Food Safety Authority of Ireland
ring-fencing this within a Company www.odca.ie
structure. The rates of tax in the Office of the Director of Consumer
ROI must also be considered in Affairs
determining the route you want to www.entemp.ie
take. As trade increases, it may Department of Enterprise Trade
be advisable for tax reasons to & Employment (go to “Consumer
establish a separate company. Protection Section)
www.ifsra.ie
6.3 Do I need a licence to sell Irish Financial Services Regulatory
products in ROI? Authority
Not generally, but this depends
on the type of product to be 6.6 At what point does the risk
sold. For example, a licence pass from me (the seller) to the
would be required for the sale of purchaser?
pharmaceuticals. Specific advice Risk, in terms of loss, is the
should be taken on each occasion. responsibility a carrier, borrower,
user/purchaser of property or goods
6.4 Must I declare my goods at assumes if there is damage or loss.
Customs? Passing of Risk means the point at
Do I need to complete export which the buyer will be responsible
documentation? for the goods. For example, if
goods are delivered by lorry, who
There is free movement of goods bears the loss if the goods are
within the EU and the only goods stolen in transit before they reach
which need to be declared at the purchaser?
Customs are excisable goods i.e.
tobacco, spirits, wines and beer. This issue arises just as much
within your own jurisdiction as in a
Should your exports from NI exceed cross-border context and is covered
£270,000 per annum you will need by the Sale of Goods legislation,
to submit UK Intrastat returns. which is broadly similar in both
43

23. jurisdictions. Normally, where the 6.8 Do I need to have product liability UK resident employees into ROI professional adviser if these rules are
I am based in Northern Ireland and want to sell products into Ireland
seller arranges delivery to the insurance? to work and they spend more likely to impact upon your business.
purchaser, risk will only pass to the Yes. You should also ensure than 183 days per year working in
purchaser on receipt of delivery. that the current product liability ROI, those employees must be on 6.10 Is my Employers Liability
In a cross-border sale, this may insurance policy issued to you in an Irish payroll. Furthermore, the Insurance valid in ROI?
therefore mean that risk would only Northern Ireland is not restricted Irish Revenue Commissioners will More than likely it is not. Specific
pass to the buyer when he receives to sales within Northern Ireland. If automatically apply single person’s advice should be taken by you
the goods in ROI. Often, the it is so restricted, you will need tax credits and allowances to such from your Insurance Company. If
contract will define at which point to negotiate with your insurance earnings. employing someone in the Republic
risk passes. A seller (who generally company to ensure that the product of Ireland it is essential that that
draws up the contract) will however liability insurance extends to sales Where a NI employer has UK employee is covered by Insurance
want to ensure that risk passes at into the Republic of Ireland. resident employees working in which applies to the Republic of
the earliest point. RoI for more than 60 days the NI Ireland Health & Safety Law.
6.9a What if I am employing an ROI employer must register for Irish
In a cross-border context, it may resident to work for me in ROI? payroll. There is no requirement to 6.11 Are my vehicles/drivers insured
be wise to consider appointing a In general terms, if your Company operate Irish payroll where certain in ROI?
Distributor based in the Republic of is based in NI and employs an ROI conditions are met (e.g. employee Normally, vehicles used for business
Ireland to ensure that risk passes resident to carry out duties in ROI, taxed in UK, employees carry out purposes must be specifically
to the Distributor. That is, the a PAYE scheme must be operated their duties in RoI for less than 183 insured for business use. It would
risk passes to him once goods in ROI and you, as the employer, days, etc.). be wise, prior to undertaking
are collected from your premises are required to register and account a new business venture in the
in Northern Ireland. For further for PAYE/PRSI contributions in ROI. Please note that where the Republic of Ireland, to obtain written
definitions, see Distributor and Similar schemes operate in NI in UK business has a permanent confirmation from your Insurance
Sales Agent. respect of NI residents carrying out establishment (or deemed Company in Northern Ireland that it
duties in NI for an ROI company. establishment) Irish PAYE must be will cover your vehicles/drivers for
6.7 What liability do I have for operated even if the employee only business purposes in the Republic
defective products in ROI? Bear in mind that if you employ works for one day in Ireland. The of Ireland.
If goods are being sold through someone in ROI to work for 183 day rule does not apply in this
a Distributor in the Republic of you, that employee can avail of instance. 6.12 Are the traffic/vehicle regulations
Ireland, the Distributor will generally rights under ROI Employment the same in ROI?
be required to take on liability for legislation. Specific legal advice The UK employer must continue to While traffic/vehicle regulations
defective products. This would be should be taken with regard to the operate UK PAYE in respect of the are broadly similar, specific advice
subject to the Distributor being employment contract. While ROI days the employee carries out their should be taken in each instance.
entitled to indemnity from the seller and NI employment legislation are duties in NI. The employer can only For further information on driver and
for those defective products. In broadly similar, there are specific give a credit against the UK PAYE vehicle licensing in the Republic of
such circumstances, the Distributor areas where the legislation differs due for the lower of the two taxes Ireland go to the following websites -
would deal directly with the buyer between the two jurisdictions e.g. i.e. Irish PAYE v UK PAYE. Irish PRSI www.motortax.ie
and would in turn be entitled to be redundancy payments. will not apply in this instance. Motor Tax Online
compensated by the seller for any www.transport.ie
loss arising to the Distributor as 6.9b What if I am sending NI This could result in employees Department of Transport
a result of the sellers negligence/ employees into ROI to work receiving less take-home pay
breach of contract. If, however, there? than they would if their salary was In certain instances, should you
goods are sold by you personally This is a complex area, which has only subject to the NI/UK PAYE wish to avoid the expense of
or through a Sales Agent, then you been further complicated by a system. This is likely to cause great compliance with the traffic/vehicle
will be liable for defective products recent tightening of the rules by the complications and labour relations regulations of a second jurisdiction,
under Republic of Ireland legislation, Irish Revenue Commissioners. If an problems for NI employers whose it may be wise to consider retaining
and you will be liable for after sales NI employer, who does not have a employees are regularly assigned a courier or transport agent to
service. permanent or deemed permanent to work in ROI. For this reason, you deliver your goods within the
establishment in Ireland, is sending are strongly advised to consult your Republic of Ireland.
44 45