Living in the South working in NI - tax?

K

kkboy

Guest
I am currently living and working in Dublin as I have done all my life. My wife is from Monaghan and we are moving up there in a couple of months. I intend looking for a job in Newry because there are better opportunities and it's not a long commute. But I am unsure of the tax consequences:
- I presume my emloyer will deduct PAYe tax at source.
- Am i entitled to the usual tax credits under the UK tax system
- Should I still complete an Irish tax return and pay the balance of PAYE & PRSI etc
- Generally is there anywhere I can look to find out the full consequences of the move?
Thanks
kkboy
 
Your employer in NI will operate UK paye and NIC on your employment income.
You are liable to UK tax on your employment income as you are working in the UK. As an EU resident you will be entitled to UK personal allowances based on your personal circumstances.

However, as you are resident in ROI, you will be liable to Irish tax on your income, but with a credit for any UK tax paid (up to the max Irish tax liability).
 
Hi there

As there is a double taxation agreement between Ireland and the UK, and assuming you are a PAYE worker, you will not be liable for Irish tax. Your obligation will be fulfilled through the UK tax system.

Remember to apply for a National Insurance number though as it can take a while and you will be emergency taxed in the meantime.
 
The above post is not correct - the double tax agreement gives you the right in Ireland to claim the foreign tax credit.

As an Irish resident you are liable to tax in Ireland on your worldwide income no matter where it is earned (assuming you are Irish domiciled).

As an employee in the UK your employer is obliged to operate UK PAYE on your salary.
 
I do not agree, if you are a PAYE worker in the North of Ireland and you live over the border you are not liable to pay Irish tax.

You pay tax in the North through the PAYE system, you do not have to submit an Irish tax return.

The situation differs if you are not a PAYE worker.

The border areas are filled with people who work in the other jurisdiction (me being one of them), who have no obligation to file tax returns if PAYE is their only source of income
 
Thanks for this - i think i really need to get onto the Irish revenue for this - I do have a rental/investment properties here in Southern Ireland so does this bring all my income into the Irish tax net?
 
Yes, if you have rental income in the republic, as well as PAYE income in the North and you are Irish domiciled, you will submit a return showing all income to the Revenue.You will receive a credit for any tax paid in the North.
 
Yes, if you have rental income in the republic, as well as PAYE income in the North and you are Irish domiciled, you will submit a return showing all income to the Revenue.You will receive a credit for any tax paid in the North.

It's academic, income tax and national insurance are much higher in the UK. The UK taxation will work out as a credit when you complete an Irish revenue return. Not sure if anything can be done about the National Insurance. Should you be exempt and pay this in the Republic, as you will fail to benefit from N.I. jurdisdication?
 
Generally PAYE income tax is paid at the rate applicable to the location of the employer.
 
It's academic, income tax and national insurance are much higher in the UK. The UK taxation will work out as a credit under the revenues return. Not sure if anything can be done about the National Insurance. Should you be exempt and pay this in the Republic, as you will fail to benefit from N.I. jurdisdication?
You will not be exempt from National Insurance in the North, nor will you get credit but you will benefit from contributions paid there, in the same way as you would benefit from PRSI contributions made in the republic.You will be entitled to all the same benefits if you live in the Republic, the only difference is that revenue have to correspond with the Inland Revenue and get your details from them
 
Back
Top