Cross Border Employment



I live in Newry and have been offered employment with a private company based in Dundalk and have been told I will be paying Irish tax. Is this correct and would I also have to pay UK income tax?




The fact that your employer is situated in the Republic of Ireland (ROI) does not mean you will automatically be on an Irish payroll. If for example you were working for a Dundalk firm but carrying out your duties in Northern Ireland, then your employer would have to operate a UK payroll and, in some cases, operate payrolls in both jurisdictions.


However, if you carry out your duties full time in Dundalk you will be on an Irish payroll and have Irish income tax, USC and PRSI (equivalent of national insurance) deducted from your earnings.


As a UK resident you are liable to UK taxes, and if the amount of Irish tax and USC deducted from you via Irish paye is less that the UK liability based on the same income, you will be required to pay any shortfall to the UK Inland Revenue.


The income tax system in the ROI operates using a range of tax credits and bands, therefore if you were to claim all available ROI tax credits based on your personal circumstances you may lower your Irish tax. To lessen any potential underpayment of UK tax you should ensure that you are taxed in the ROI as a single person with no dependants throughout the year.


You will need to register with the UK HM Revenue & Customs to complete a UK self- assessment tax return each year as you will be in receipt of foreign income. This will also ensure that the National Insurance Contributions & Employer Office are aware that you are paying PRSI in ROI and will not be liable to pay any National Insurance contributions in the UK.


At the end of the UK tax year, you will then be in a position to carry out a review of both the UK and Irish tax calculations and can then request a refund of Irish tax if applicable.


The advice above is specific to the facts surrounding the questions posed. Neither PKF-FPM nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.


Get in touch with Ruth Emery via email