# Implications of working in NI, living in ROI



## remey (2 Sep 2011)

My husband is moving job to Northern Ireland, a promotion within his current company but will be paid sterling.  He will be given a company car (northern reg) and accommodation.  Just wondering any tax implications we should be aware of?  Obviously there would be BIK on co. car but would this be at the UK rate?

Also, should he open a new sterling bank account? Would he have to? Or can sterling wages be paid into an Irish account? 

He heard something that he can pay UK tax and then at year end reconcile it with Irish tax and pay the difference to keep his Irish stamps?

Is there anything else we need to be mindful or aware of?

Many thanks


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## Ann1 (2 Sep 2011)

Hi remey.
It's called Trans-Border Workers Relief. Your husband can make a tax return in the South of Ireland under self-assessment by 31 August 2012....which will allow him to settle any difference owing or not by 31st October 2012. The UK tax year runs from 6th April to 5th April the following year. He will need his P60 from his employer in Northern Ireland to make his tax return in the South of Ireland.
I'm not sure what you mean about paying the difference to keep his Irish stamps.....I believe you cannot pay PRSI contributions in two European countries at the same time. 
This link gives the conditions to qualify for Trans-Border Workers Relief.
http://www.revenue.ie/en/tax/it/reliefs/trans-border-workers-relief.html


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## Gervan (2 Sep 2011)

He may qualify to pay voluntary Prsi in Ireland, while paying NI in UK. 
http://www.welfare.ie/EN/Topics/PRSI/Pages/volcons.aspx

If he does, he can keep his Irish average up to date whilst also gaining some entitlement to a UK pension.


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## Ann1 (2 Sep 2011)

Gervan
I've had a look at the link but I cannot find where it says you can pay voluntary contributions in the south while working and paying NI in Northern Ireland. I would be interested if you have any information on this.


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## gipimann (2 Sep 2011)

It's stated very clearly in the welfare link posted above that you cannot pay PRSI contributions (or their equivalent) in more than one EU country at any time, so voluntary PRSI contributions cannot be made.

_Under EU legislation it not possible for a person to be subject to the social insurance systems of two or more member states at the same time. This means that you cannot pay Voluntary Contributions in Ireland at the same time as you are in insurable employment, self-employment, receiving credited contributions or paying Voluntary Contributions in another EU member state. _

The UK contributions can be combined with the Irish contributions to qualify for an Irish pension.


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## Gervan (2 Sep 2011)

Hi Ann1. The OP's husband will be paying NI contributions as a Paye worker in Uk because it is compulsory. The contributions will be deducted from his gross wage. According to the new UK pension qualification rules, each year's contrubution will later entitle him to one thirtieth of the full pension.

Assuming he has the Prsi history here to qualify to pay voluntary Prsi, and is 


> between the age of 16 and 66 and no longer covered by compulsory  PRSI by way of insurable employment, self-employment or credited  contributions.


 he can opt to pay voluntary Prsi contributions. He doesn't have to, and it will depend on which rules apply in the year he reaches pension age as to whether it's worth it or not. 


I know one can't pay _Voluntary_ contributions in two EU countries at the same time, but it is possible to pay compulsory in one and voluntary in another, depending on the qualifying conditions.


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## Ann1 (2 Sep 2011)

Thank you gipimann.....I though I was missing something when I read it.....lol.


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## Ann1 (2 Sep 2011)

Hi Gervan...I am interested in this because my hubby is working in Northern Ireland also and paying NI contributions. I thought you meant he could pay voluntary PRSI in the South at the same time....but obviously not.....


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## remey (2 Sep 2011)

Thanks for the feedback.
Ann1 does your husband have a uk bank account?


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## Tomorrow (2 Sep 2011)

Hi there

My self and my husband work in NI and live in ROI. (me self employed, him employed)

For employees there is no need to file tax returns or pay extra stamps.

Any National Insurance you pay in NI will count towards your Irish stamps.

There is also no issue in relation to opening a sterling bank account using your Irish address.

Hope this helps

Tomorrow


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## Ann1 (2 Sep 2011)

remey said:


> Thanks for the feedback.
> Ann1 does your husband have a uk bank account?


Yes...he just took his passport... our new lease on the apartment.... and his letter of employment to the bank and they opened an account straight away for him. It was Ulster Bank but we discovered afterwards that they do not have the facility to do international transfer of funds on their internet banking....lol...so you might want to make sure you have that facility when you choose a bank...


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## Ann1 (2 Sep 2011)

Tomorrow said:


> Hi there
> 
> My self and my husband work in NI and live in ROI. (me self employed, him employed)
> 
> ...



Hi Tomorrow
We just filed our first Self Assessment in the south. Our family home is in the south and we go down every weekend... so we were told we had to make a tax return there.


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## gipimann (2 Sep 2011)

Gervan said:


> I know one can't pay _Voluntary_ contributions in two EU countries at the same time, but it is possible to pay compulsory in one and voluntary in another, depending on the qualifying conditions.


 
The paragraph I quoted (from the SW site) states very clearly that a person cannot pay voluntary contributions in Ireland if they are in insurable employment in another EU state - which is what a person would be if working in NI or UK.


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## Tomorrow (2 Sep 2011)

Hi Ann,

If it is just PAYE income, there is no requirement for 
A return.

Perhaps you have other income as well? If so, a return may have been necessary


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## Ann1 (2 Sep 2011)

Hi Tomorrow
No it is just PAYE.....we were told that because we are domiciled in ROI we are required by law to make a tax return stating all earnings outside of Ireland. We filed it anyway just the other day.....and the tax agent in tax office said we should do exactly the same thing next year.


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## Tomorrow (2 Sep 2011)

Hi Ann

You are correct in what you say, all earnings have to be declared in Ireland if you are domiciled in Ireland and I have to make a return in ROI because I am self employed in NI. 

But the main reason the cross border agreement is in place is so that PAYE workers do not have this headache. As I said above, if you have other income a return would be required.

Can you imagine the issues if all PAYE cross border workers had to do tax returns - think of - for eg, supermarket workers in Asda in Strabane who live in Donegal - it would be a nightmare and as I said, it is not required


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## remey (3 Sep 2011)

Ann1 said:


> Yes...he just took his passport... our new lease on the apartment.... and his letter of employment to the bank and they opened an account straight away for him. It was Ulster Bank but we discovered afterwards that they do not have the facility to do international transfer of funds on their internet banking....lol...so you might want to make sure you have that facility when you choose a bank...


 

Very important, thanks. He'll need to transfer funds every month to cover mortgage etc here. 
Thanks for all the good tips.


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## Gervan (3 Sep 2011)

Apologies, but I'm now baffled. 
I was invited by the UK NI department to pay voluntary contributions there, to top up my pension rights. I have told them I work in Ireland, and queried more than once this point about contributing in UK and Ireland. Each time I have been assured I can continue to make voluntary NI contributions. 
They must have "different EU legislation". And yes, I know that's not possible.


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## Ann1 (3 Sep 2011)

Hi Gervan
Have you previously work and paid NI contributions in the UK. If you have....you will be entitled to a UK State Pension or part of one. You may be eligible to buy back 'lost years' to increase your UK pension. Six extra years in total I believe. Maybe this is what they are referring to.


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