I live in Northern Ireland and work in Dublin, commuting each day across the border.
The tax year in Ireland has just ended (31 December 2012). Do I need to report my P60
earnings in Ireland to the UK Revenue?
A: As a UK resident, you must declare to the UK Revenue each year, details of
your worldwide income. Your worldwide income is then recalculated under UK tax
rules. Therefore if you have not already done so, you must register with HMRC for
self-assessment and submit a self-assessment tax return to HMRC by 31 January
each year, declaring your ROI income via your UK Tax Return. This return is due for
submission to HMRC on or before 31 January each year following the end of the tax
year. For example, for the year ending 5 April 2013, your tax return is due to HMRC
by 31 January 2014.
As a cross border worker, you will be given relief for the Irish tax suffered in Ireland.
The Universal Social Charge (USC) that you would have paid in Ireland will also be
treated as part of tax paid in Ireland and therefore you will get relief for both the Irish
tax and USC suffered against your UK tax liability.
Unlike Ireland, once your tax has been calculated under UK rules (with relief given for
Irish tax suffered) any balance of tax due, will be payable to the UK Revenue. Irish
residents working in the UK have Transborders Workers Relief which allows them to
write-off any balance of tax due on their UK income when taxed under Irish tax rules.
In order to minimise any balance of tax due in the UK at the year end, it may be
worthwhile checking with a cross border Tax Advisor how best to ensure that as little
(if any) balance of tax is due to the UK Revenue.
The advice in this column is specific to the facts surrounding the questions posed. Neither
the Tyrone Times nor the contributors accept any liability for any direct or indirect loss
arising from any reliance placed on replies.