Pilots self-employed for tax purposes.
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From a legal point of view there is no argument, the pilot is under the control and direction of the airline. The airline provides the tools to carry out that job.
If one was really self-employed meaning having registered a company, working for various clients but most importantly issuing the INVOICES, they theoretically must include VAT. It's another issue one can check out on the same web page, there're exemptions to VAT as well based on revenue and profile. Just make sure you're not due for VAT payment as well. All in all it's a dummied practice falling as well under the so-called pseudo self-employment act which if exercised properly can lead to very serious consequences. Sooner or later the **** is gonna hit the fan and yet another loophole is gonna be closed. Till then enjoy it folks.
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Thanks Guys!
It does seem pretty clear that in most cases (RYR / BKF may be an exception?) that regardless of who (or where) pays you, if you are working for an airline you are an employee.
Feedback from the accountant supports this. I asked him whether you could load the expenses, eg. if you had to pay your own medical which would normally be paid by the airline. His respone was to check the contract in detail but the rules on legitimate expenses are very clear and strictly adhered to by HMRC. If you get a job this year now your tax would be assessed on the 09/10 return and would be liable for payment in Jan `11.
Trap there is to have a pretty good idea what it will be and put that aside every month to avoid the nasty shock when the bill drops through the letter box. (I reckon under the mattress would be good since the return would be better than the banks!!!!)
So, what thoughts on where you would actually put that self imposed PAYE tax money each month till it was due?
It does seem pretty clear that in most cases (RYR / BKF may be an exception?) that regardless of who (or where) pays you, if you are working for an airline you are an employee.
Feedback from the accountant supports this. I asked him whether you could load the expenses, eg. if you had to pay your own medical which would normally be paid by the airline. His respone was to check the contract in detail but the rules on legitimate expenses are very clear and strictly adhered to by HMRC. If you get a job this year now your tax would be assessed on the 09/10 return and would be liable for payment in Jan `11.
Trap there is to have a pretty good idea what it will be and put that aside every month to avoid the nasty shock when the bill drops through the letter box. (I reckon under the mattress would be good since the return would be better than the banks!!!!)
So, what thoughts on where you would actually put that self imposed PAYE tax money each month till it was due?
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Social Security
There is not only the taxman, there is also the social security to look at.
As a self employed, you usually do not contribute to the countries public sickness insurance, accident insurance, pension scheme and unemployment system or you pay less into these systems.
Speaking for the situation in Germany, the regulations are written down in the "Sozialgesetzbuch" (link in German).
In case of a self employement being fake, the invoice sent to the employer will be regarded as Net Salary and the employer has to pay all duties and fees on top of that to the taxman or whoever gets the money in the state.
The company, the fake self employed works for, and a possible agency between the company and the self employed, are both together responsible to pay these fees to the state. Even in case the fees are shared usually between employer and employee, the employer alone is responsible for the payments to the state.
Regarding the employment, if the self employed does not work directly for the airline but through an agency, the agency will become the employer.
There have been cases, where a company has terminated contracts with agencies and courts have decided that before the agency is allowed to terminate the employment with the worker, the agency must try to find other jobs for the worker because it is the nature of an agency that contracts with other companies are temporary.
Nevertheless, a pilot will in most cases fall under the rules for employment and will enjoy the benefits of employment protections given by law.
Is paying a little less tax enough reason to loose all other benefits?
Are you gaining more in total if you choose to pay your pension insurance, loss of licence, social security, unemployment insurance by yourself instead of sharing it with your employer? Did you draw the line under your addition just on a short view below your monthly paycheck or invoice or did you draw the line at the end of your working life when you retire and want to relax with your pension?
Some other problems may rise for companies that operate on an international basis in different countries, like ie. said Ryanair. Even though Europe tries to provide a common framework, there are still different layouts in each countries applicable laws and regulations. Just alone double tax agreements between countries, some say that the tax has to be paid in the country where the company is, som say the tax must be paid in the country where your place of residency is.
Anyhow, there are more problems to discuss if it comes to different currencies. Will you be paid in Euros or USD, Pounds or Norwegian, Swedish or Danish Krones? What will happen if the exchange rate changes? Who will carry the currency risk?
Simple questions but a fairly difficult matter, not only in the airline industry.
As a self employed, you usually do not contribute to the countries public sickness insurance, accident insurance, pension scheme and unemployment system or you pay less into these systems.
Speaking for the situation in Germany, the regulations are written down in the "Sozialgesetzbuch" (link in German).
In case of a self employement being fake, the invoice sent to the employer will be regarded as Net Salary and the employer has to pay all duties and fees on top of that to the taxman or whoever gets the money in the state.
The company, the fake self employed works for, and a possible agency between the company and the self employed, are both together responsible to pay these fees to the state. Even in case the fees are shared usually between employer and employee, the employer alone is responsible for the payments to the state.
Regarding the employment, if the self employed does not work directly for the airline but through an agency, the agency will become the employer.
There have been cases, where a company has terminated contracts with agencies and courts have decided that before the agency is allowed to terminate the employment with the worker, the agency must try to find other jobs for the worker because it is the nature of an agency that contracts with other companies are temporary.
Nevertheless, a pilot will in most cases fall under the rules for employment and will enjoy the benefits of employment protections given by law.
Is paying a little less tax enough reason to loose all other benefits?
Are you gaining more in total if you choose to pay your pension insurance, loss of licence, social security, unemployment insurance by yourself instead of sharing it with your employer? Did you draw the line under your addition just on a short view below your monthly paycheck or invoice or did you draw the line at the end of your working life when you retire and want to relax with your pension?
Some other problems may rise for companies that operate on an international basis in different countries, like ie. said Ryanair. Even though Europe tries to provide a common framework, there are still different layouts in each countries applicable laws and regulations. Just alone double tax agreements between countries, some say that the tax has to be paid in the country where the company is, som say the tax must be paid in the country where your place of residency is.
Anyhow, there are more problems to discuss if it comes to different currencies. Will you be paid in Euros or USD, Pounds or Norwegian, Swedish or Danish Krones? What will happen if the exchange rate changes? Who will carry the currency risk?
Simple questions but a fairly difficult matter, not only in the airline industry.
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Any UK based pilot working under contract with BRK should get themselves an Irish company and none of this McNamara nonsense either.
Set up an irish company
The payments from BRK are paid to the company
become an employee of the company
put yourself on a salary of about €35k, you would need to pay around €450 to the Irish government in tax per month. The rest of the cash can be put on deposit by the company if you want. (You can get a sterling bank account paying sterling interest rates if you want)
Under Irish tax rules you will be entitled to claim expenses such as your away form base expenses and also over night and travel allowances.
At the end of the year any cash left that you were not able to claim tax free pay it as a bonus to yourself and pay some more Irish income tax. Alternatively you could leave it in the company. Under new Irish tax rules any new company does not have to pay tax on its profits for the first three years of trading.
The other option is to put it into a pension. All of the UK pension companies operate in Ireland and a decent broker would set you up in a fund that will get full tax relief in Ireland and also be transferable to the UK for free when you finish with Ryaniar.
Under the cross border relief you will not need to pay any further tax or national insurance in the UK (this is set up for people working in the border counties in Norther Ireland and the republic who might cross into the other country to work but would also be available for pilots.
under vies rules you will get yourself out of charging vat to BRK in the UK.
There is no IR35 equivalent in Ireland so any legitimate expenses are allowable,
Your only risk with this is currency risk. You could have a euro and sterling bank account in Dublin and with internet banking and free transfers between both accounts so long as you keep an eye on currency movements you should be able to transfer lump sums when the sterling rate against the euro is favorable and back again if you want then it is not.
It sounds like a long winded process but there are accountants in Dublin who will do it all for you and I have found one that is doing it for less than Ł1,500 a year regardless of your income level.
I am not an accountant but this is eactly the scheme that has been put in place for a young friend of mine who is an FO with Ryanair. My own accountant dealth with the accountant in Dublin for him to set it up and he is happy that everything checks out and is tax comliant in the UK.
There are specific tax rules between Ireland and the UK and for a contractor, particularly one working for Ryanair, those rules shoudl be used to reduce taxes for as long as the loop hole is there.
Set up an irish company
The payments from BRK are paid to the company
become an employee of the company
put yourself on a salary of about €35k, you would need to pay around €450 to the Irish government in tax per month. The rest of the cash can be put on deposit by the company if you want. (You can get a sterling bank account paying sterling interest rates if you want)
Under Irish tax rules you will be entitled to claim expenses such as your away form base expenses and also over night and travel allowances.
At the end of the year any cash left that you were not able to claim tax free pay it as a bonus to yourself and pay some more Irish income tax. Alternatively you could leave it in the company. Under new Irish tax rules any new company does not have to pay tax on its profits for the first three years of trading.
The other option is to put it into a pension. All of the UK pension companies operate in Ireland and a decent broker would set you up in a fund that will get full tax relief in Ireland and also be transferable to the UK for free when you finish with Ryaniar.
Under the cross border relief you will not need to pay any further tax or national insurance in the UK (this is set up for people working in the border counties in Norther Ireland and the republic who might cross into the other country to work but would also be available for pilots.
under vies rules you will get yourself out of charging vat to BRK in the UK.
There is no IR35 equivalent in Ireland so any legitimate expenses are allowable,
Your only risk with this is currency risk. You could have a euro and sterling bank account in Dublin and with internet banking and free transfers between both accounts so long as you keep an eye on currency movements you should be able to transfer lump sums when the sterling rate against the euro is favorable and back again if you want then it is not.
It sounds like a long winded process but there are accountants in Dublin who will do it all for you and I have found one that is doing it for less than Ł1,500 a year regardless of your income level.
I am not an accountant but this is eactly the scheme that has been put in place for a young friend of mine who is an FO with Ryanair. My own accountant dealth with the accountant in Dublin for him to set it up and he is happy that everything checks out and is tax comliant in the UK.
There are specific tax rules between Ireland and the UK and for a contractor, particularly one working for Ryanair, those rules shoudl be used to reduce taxes for as long as the loop hole is there.
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Hasdrubal,
"Under new Irish tax rules any new company does not have to pay tax on its profits for the first three years of trading",
Where did you get this info from,
Not that i am doubting your knowledge,
But i can find no info on revenue.ie or on the net anywhere,
Is it heresay from your accountant,
Or do you have a link with the info,
Thanks,
"Under new Irish tax rules any new company does not have to pay tax on its profits for the first three years of trading",
Where did you get this info from,
Not that i am doubting your knowledge,
But i can find no info on revenue.ie or on the net anywhere,
Is it heresay from your accountant,
Or do you have a link with the info,
Thanks,
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So, it looks like you can work something through Ireland.
my understanding is that the job with Astraeus will be on contract to PAS (they are doing the recruitment) which is a Swiss company.
My accountant reckoned it didnt matter which contry the contractor was in, if the airline (and you) were pased in UK then you would be liable for UK rules.
Good Stuff! Keep it coming guys!!
my understanding is that the job with Astraeus will be on contract to PAS (they are doing the recruitment) which is a Swiss company.
My accountant reckoned it didnt matter which contry the contractor was in, if the airline (and you) were pased in UK then you would be liable for UK rules.
Good Stuff! Keep it coming guys!!
Self Employment
I did this for 5 years as a UK resident under the terms set out on page 1.
If you want the name of my accountant PM me or ask around the contractors
that's how I found them
If you want the name of my accountant PM me or ask around the contractors
that's how I found them
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Hawkwing
You need to look at the last Finance Act passed in Ireland which governs the December 2008 budget. The company must be set up in 2009 and after and must be involved in a qualifying trade which pilot contracting will qualify
have a look here at the section PAYMENT OF CORPORATION TAX
Irish Taxation Institute - Corporation Tax
You need to look at the last Finance Act passed in Ireland which governs the December 2008 budget. The company must be set up in 2009 and after and must be involved in a qualifying trade which pilot contracting will qualify
have a look here at the section PAYMENT OF CORPORATION TAX
Irish Taxation Institute - Corporation Tax
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The Irish thing works for a contractor based in any country flying for any airline. Essentially his Irish registered company is the employer and the employee is essentially seconded to the ariline or agency
As the employment remains in Ireland the tax base will also remain there. So if you set it up as part of a BRK contract and ended up contracting with Kingfisher or somone in India rather than go through the same thing again you can keep your employment in Ireland.
It also means that you will qualify for an Irish state pension after a few years. This is better than paying a few years worth of National Insurance in a half dozen different countries that a self employed pilots ends up with. I have three years in Australia, Two in Tailand, and single years of NI type contrinutions in a few other places all of which are of no use to me. Thankfully I worked long enough as an employee with BA to qualify for my state pension in the UK befroe I decided to start contracting.
As the Irish have decided to leave self employed pilots alone for now it seems to be the best jurisdiction to place a "flag of convenience" for tax purposes for any pilot who is contracting. At the end of the day you get a P60 from an Irish company which is better then getting it from some offshore location that will set off the alam bells with the Inland Revenue.
My mate is now paying 10% income tax on a FO salary with all of his taxes paid in Ireland and the UK. It would nearly make me think about going back to contracting.
As the employment remains in Ireland the tax base will also remain there. So if you set it up as part of a BRK contract and ended up contracting with Kingfisher or somone in India rather than go through the same thing again you can keep your employment in Ireland.
It also means that you will qualify for an Irish state pension after a few years. This is better than paying a few years worth of National Insurance in a half dozen different countries that a self employed pilots ends up with. I have three years in Australia, Two in Tailand, and single years of NI type contrinutions in a few other places all of which are of no use to me. Thankfully I worked long enough as an employee with BA to qualify for my state pension in the UK befroe I decided to start contracting.
As the Irish have decided to leave self employed pilots alone for now it seems to be the best jurisdiction to place a "flag of convenience" for tax purposes for any pilot who is contracting. At the end of the day you get a P60 from an Irish company which is better then getting it from some offshore location that will set off the alam bells with the Inland Revenue.
My mate is now paying 10% income tax on a FO salary with all of his taxes paid in Ireland and the UK. It would nearly make me think about going back to contracting.
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Conf Bias, suggest you speak to some accountants rather than pilots - I tried a similar search when I was setting up. In the end I arranged to see about 4 or 5 local accountants, explained the scenario rougly and asked them what they would propose both for me and what it would cost to set up. It was a very useful exercise as I was able to gain some free info and advice from the accountants I saw, was able to see that some were alot more proactive than others as well as a vast price difference in accountants fees!
For me personally I went self employed, but the company route that has already been mentioned is another option some of the guys have gone for. I plan to do that when my income increases. Being self employed is a little cheaper to setup/run and allows some more expenses to be recovered. I've heard alot about the IR35 stuff, not sure what to think - part of me is hoping they don't notice!
For me personally I went self employed, but the company route that has already been mentioned is another option some of the guys have gone for. I plan to do that when my income increases. Being self employed is a little cheaper to setup/run and allows some more expenses to be recovered. I've heard alot about the IR35 stuff, not sure what to think - part of me is hoping they don't notice!
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Three Year Tax Exemption for Start up Companies
Start-up Companies who commenced trading on or after 1 January 2009 and whose tax liability for each year does not exceed €40,000 are exempt from tax (including capital gains tax) in each of the first three years of trading.
Start-up Companies who commenced trading on or after 1 January 2009 and whose tax liability for each year does not exceed €40,000 are exempt from tax (including capital gains tax) in each of the first three years of trading.
Looks like enquiries to an Irish tax expert are in order!
My only concern is that Mr Brown and his cronies at HMRC will find some way to screw us!!
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"My only concern is that Mr Brown and his cronies at HMRC will find some way to screw us!!"
How about Mr Brown and his cronies at HMRC might find some way to get everybody to pay their fair share like the rest of us?
How about Mr Brown and his cronies at HMRC might find some way to get everybody to pay their fair share like the rest of us?
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night flight, Dont get sanctimonious with me!
This thread was born out of postings re the fact that times are hard and employers are cutting contract T & C`s accordingly.(see the Astraeus thread!) Those of us seeking employment now are going to be earning a great deal less than was available even a year ago! Through this medium we might find ways of offsetting the precarious nature of temporary contracts!
There have been times in my career when I haven`t paid any taxes at all and I still managed to sleep at night.
I started paying tax when I was 19 years old. I have paid school fees and private health, and never taken taken a penny of unemployment benefit (not to date anyway!) and trust me I have paid a
sight more than I have ever had out of any government in this country!
And I really feel sorry for your 40%! I would welcome the chance to have to pay it!!
AL446, what? not enough `action` over on RYR centre court?
If you read the start of this thread you will see that I was meticulous in cautioning anyone incriminating themselves. This is a general discussion relating to references made on centre court!
If there is nothing of value to be said then it will dry up of its own accord, which is the right way of things!!
I have no wish to see this as a thread which slides into the aimless muck slinging which is such a feature of this site. If that`s the way its headed then lets stop it now, and a big THANK YOU! to those who took the trouble to post in a mature and constructive way!
As a man, more eloquent than I, used to say..........."Good Night and may your God go with you".
This thread was born out of postings re the fact that times are hard and employers are cutting contract T & C`s accordingly.(see the Astraeus thread!) Those of us seeking employment now are going to be earning a great deal less than was available even a year ago! Through this medium we might find ways of offsetting the precarious nature of temporary contracts!
There have been times in my career when I haven`t paid any taxes at all and I still managed to sleep at night.
I started paying tax when I was 19 years old. I have paid school fees and private health, and never taken taken a penny of unemployment benefit (not to date anyway!) and trust me I have paid a
sight more than I have ever had out of any government in this country!And I really feel sorry for your 40%! I would welcome the chance to have to pay it!!
AL446, what? not enough `action` over on RYR centre court?
If you read the start of this thread you will see that I was meticulous in cautioning anyone incriminating themselves. This is a general discussion relating to references made on centre court!
If there is nothing of value to be said then it will dry up of its own accord, which is the right way of things!!
I have no wish to see this as a thread which slides into the aimless muck slinging which is such a feature of this site. If that`s the way its headed then lets stop it now, and a big THANK YOU! to those who took the trouble to post in a mature and constructive way!
As a man, more eloquent than I, used to say..........."Good Night and may your God go with you".
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Flyingstig, This has nothing to do with anything on CC or, if so, only peripherally. In my own way I was simply suggesting that you should be pretty circumspect in what is posted, HMRC is always keen to get its mitts on whatever source of revenue it can get.
In previous times I have been a contractor and come across most of the schemes to avoid tax (or any other) liability and they have all been shut down as they have been overused or abused. That was pre net days so I have no doubt this thread would be of interest to HMRC. You may have urged caution at the start but many will skip by that, I see no harm in issuing a gentle reminder.
Now, Dave Allen, THERE was a fine Irish guy.
In previous times I have been a contractor and come across most of the schemes to avoid tax (or any other) liability and they have all been shut down as they have been overused or abused. That was pre net days so I have no doubt this thread would be of interest to HMRC. You may have urged caution at the start but many will skip by that, I see no harm in issuing a gentle reminder.
Now, Dave Allen, THERE was a fine Irish guy.
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I wouldn't all go getting too excited about paying tax in Ireland if you actually live in the UK. HMRC will still get their pound of flesh irrespective of where you pay tax and NI if you cannot demonstrate that you are domiciled elsewhere. If you have a house, family, other interests here and cannot prove that you live abroad 'full time' they'll deem you resident and send you a bill.
As others have said, it won't be before time for those rooking the system. Two things certain in life................
As others have said, it won't be before time for those rooking the system. Two things certain in life................
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Flyingstig,
Nothing sanctimonious. You started this thread and it is titled “Pilots self-employed for tax purposes”. I think you are getting a bit sensitive if you think that my comment reflects on you individually. It actually relates to a major profitable airline using a very questionable practice of claiming self employment status for a significant group of its pilots.
If you honestly believe any of these pilots are self employed then most of the people I know (outside of flying) who genuinely are, wouldn’t mind the same guarantees around their employment status.
The main airline using this “nice” dodge is extremely profitable and yet appears to pay below market rates for most recently recruited pilots. (Indeed, did it ever have the best remunerated pilots as it used to brag about in its recruitment campaigns?) How do they try to compensate for the less than market rate terms and conditions? Get the tax man (ie the rest of us) to subsidise it!
As is often the case, one employer gets away with it and then another (Astraeus) sees the opportunity and it follows. Common link? They are both paying s..t! Journey to the bottom well and truly started! When Monarch, Baby, Jet2, Easy have to start competing with this cost base advantage guess where they will want to go?
Apologies if I have tweaked your sensitivities as I am sure that you have more than paid your way (as have most pilots, I would suggest). I am sure like the rest of us you have had your fair share of unstable employment. It seems to me that this sort of dodgy scheme will only add to that instability. Imagine when all pilots are self employed and we are paid on a daily rate. But think of all the tax benefits we will enjoy on the 80 or so days per year we are able to get work.........
Nothing sanctimonious. You started this thread and it is titled “Pilots self-employed for tax purposes”. I think you are getting a bit sensitive if you think that my comment reflects on you individually. It actually relates to a major profitable airline using a very questionable practice of claiming self employment status for a significant group of its pilots.
If you honestly believe any of these pilots are self employed then most of the people I know (outside of flying) who genuinely are, wouldn’t mind the same guarantees around their employment status.
The main airline using this “nice” dodge is extremely profitable and yet appears to pay below market rates for most recently recruited pilots. (Indeed, did it ever have the best remunerated pilots as it used to brag about in its recruitment campaigns?) How do they try to compensate for the less than market rate terms and conditions? Get the tax man (ie the rest of us) to subsidise it!
As is often the case, one employer gets away with it and then another (Astraeus) sees the opportunity and it follows. Common link? They are both paying s..t! Journey to the bottom well and truly started! When Monarch, Baby, Jet2, Easy have to start competing with this cost base advantage guess where they will want to go?
Apologies if I have tweaked your sensitivities as I am sure that you have more than paid your way (as have most pilots, I would suggest). I am sure like the rest of us you have had your fair share of unstable employment. It seems to me that this sort of dodgy scheme will only add to that instability. Imagine when all pilots are self employed and we are paid on a daily rate. But think of all the tax benefits we will enjoy on the 80 or so days per year we are able to get work.........
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Flintstone
I quite agree with you although I do not know what reciprocal agreements there are between UK & Eire on this matter, the two countries have traditionally been closer linked on these matters than any others in EU AFAIK, except perhaps Benelux.
But in this economic climate and public screaming (OK grumbling) for all to pay their share HMRC will look at every loophole and close it quick. And so they should.
But in this economic climate and public screaming (OK grumbling) for all to pay their share HMRC will look at every loophole and close it quick. And so they should.
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Night Flight, Al, your quite right.
These are difficult times and sensetivities do get a bit tender! Apologies!
Its just that, what with the ducks needing a new house and then the estimate for clearing the moat, I just thought.................................
It occured to me that being paid by my own company whether it be in Ireland or Upper Slobovia,or anybody else; if my main residence is in UK and I spend more than the magical 90 days per year, I will be resident for tax purposes. This rule has had me counting my days in UK when I was working in the Middle East, but my family and home were here. Paid by "stig Aviation" or "Emirates" same difference!
It isnt going to work! Oh Well!
Like it or not, though, right now, a job is a job is a job!
These are difficult times and sensetivities do get a bit tender! Apologies!
Its just that, what with the ducks needing a new house and then the estimate for clearing the moat, I just thought.................................
It occured to me that being paid by my own company whether it be in Ireland or Upper Slobovia,or anybody else; if my main residence is in UK and I spend more than the magical 90 days per year, I will be resident for tax purposes. This rule has had me counting my days in UK when I was working in the Middle East, but my family and home were here. Paid by "stig Aviation" or "Emirates" same difference!
It isnt going to work! Oh Well!
Like it or not, though, right now, a job is a job is a job!
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The Ireland UK tax arrangements are different to other places. There is a thing called trans border relief which makes life easier for people living in one tax jurisdiction and working in the other.
To be a bit nerdy about it I understand it came out of the Good Friday Agreement and the end to the troubles in Northern Ireland. People who cross the border to work are referred to as frontier workers. The rules governing these differ from the standard Europe wide trans border workers.
Its a complex area with lots of rules so what I would recomend is that you contact an accountant in Dublin. If anyone wants the details of the guy who we dealt with PM me and I will give it to you. He will give you details of how he will operate your taxes. You can then take this to an accountant in the Uk and ask him for his opinion on it. If the UK accountant is happy then why not.
There are thousands of people commuting between Ireland and the UK every day for work. The North South ministerial council, which is is responsible for this intiitive is a body consisting of ministers from the UK, Ireland and the Stormont Assembly. The Inland Revenue are not going to mess things around for a body like this for the sake of a few hundred pilots who are, at the end of the day, fulfilling their civic duty and are tax compliant.
On this point bear in mind that if you do become an employee in Ireland you will pay national insurance in Ireland and eventually qualify for a Irish state pension so your leeching off the her majesty will be limited to using her roads, for which you pay car tax and excise duty on petrol, her health service unless you have private medical insurance or availing of the security her government provides on the streets of Britain. You will still pay tax in the UK for water, bin collection and every other service provided by the government. So don't feel too guilty about only paying a small amount of income tax in Ireland and none in England. You will still be a net contributor to the ecomony in the long run
To be a bit nerdy about it I understand it came out of the Good Friday Agreement and the end to the troubles in Northern Ireland. People who cross the border to work are referred to as frontier workers. The rules governing these differ from the standard Europe wide trans border workers.
Its a complex area with lots of rules so what I would recomend is that you contact an accountant in Dublin. If anyone wants the details of the guy who we dealt with PM me and I will give it to you. He will give you details of how he will operate your taxes. You can then take this to an accountant in the Uk and ask him for his opinion on it. If the UK accountant is happy then why not.
There are thousands of people commuting between Ireland and the UK every day for work. The North South ministerial council, which is is responsible for this intiitive is a body consisting of ministers from the UK, Ireland and the Stormont Assembly. The Inland Revenue are not going to mess things around for a body like this for the sake of a few hundred pilots who are, at the end of the day, fulfilling their civic duty and are tax compliant.
On this point bear in mind that if you do become an employee in Ireland you will pay national insurance in Ireland and eventually qualify for a Irish state pension so your leeching off the her majesty will be limited to using her roads, for which you pay car tax and excise duty on petrol, her health service unless you have private medical insurance or availing of the security her government provides on the streets of Britain. You will still pay tax in the UK for water, bin collection and every other service provided by the government. So don't feel too guilty about only paying a small amount of income tax in Ireland and none in England. You will still be a net contributor to the ecomony in the long run