I live in Newry where up until recently I have also been employed. I have been offered a post in Dundalk, where I intend to commute to work. Which tax authorities do I need to notify?
Firstly, you will need to apply for a PPS number before you can work in the Republic of Ireland. To get a PPS Number, you will need to visit your nearest office for the Department of Social Protection and provide them with proof of your identity and your current home address. You will also need to explain why you need a PPS number and therefore should provide details of your new employer.
As your duties will be carried out in Ireland your employment will be taxed via Irish PAYE. You will receive a notice of entitlement to tax credits based on your personal circumstances, which will be deducted from your income tax liability. Income tax will be calculated on your gross pay (20% up to €33,800 and 40% on the balance) as well as PRSI and Universal Social Charge. Provided you are not a director of an Irish company or do not receive any other Irish income you will not be required to submit an Irish tax return.
As you are resident and assuming domiciled in the UK you are also obliged to declare your worldwide income to HM Revenue & Customs via self-assessment. You can do this by completing a form SA1.
When calculating any UK tax liability which may arise you will be entitled to normal personal allowances in the UK under the Double Taxation Agreement. You will also get double taxation relief for the Income tax and Universal Social Charge paid in Ireland.
There is no relief for PRSI deducted as you will not be paying UK national insurance.
A year-end review of your position is also advisable to ensure you are paying the correct tax in both Ireland and the UK.
To discuss this in further detail you should speak to a professional advisor.
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.
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