Are there any disadvantages when establishing a presence in Northern Ireland?
An Irish business person deciding to establish a presence in Northern Ireland will go through almost the very same business start-up expenses which he would have originally encountered when establishing his initial presence in Ireland. For example, it will be necessary to take on the expense of a lease/purchase of premises, building insurance, electricity, telephone supply, payment of commercial rates and other related expenses. For assistance on “start-ups” within Northern Ireland, visit Enterprise Northern Ireland at www.enterpriseni.com, Invest Northern Ireland at www.investni.com or Department for the Economy, at www.economy-ni.gov.uk.
As regards tax, if you choose to operate as a sole trader in the UK, your business is chargeable to UK tax and you must also make a return of this income to the Revenue Commissioners. However, double taxation relief will be available.
Where you operate as a trading company, there is an exposure to a higher rate of tax as Irish trading companies are taxed at 12.5% whereas UK trading companies are generally taxed at 19% from 1 April 2017.