As a cross border worker you must pay income tax in the country where you earn your income, but your ultimate tax responsibility is with the country where you live so you must submit an annual self assessment tax return each year declaring your foreign income.
Double Taxation Agreement
A Double Taxation Agreement is in place between the UK and Ireland so cross border workers living in Northern Ireland will be awarded a credit for any tax paid across the border.
For further information please visit
- HM Revenue & Customs – Tax if you live or work outside the UK
- HM Revenue & Customs – Double taxation agreements – an introduction
- Revenue – Credit for Double Taxation
Trans-border Workers Relief
Cross border workers, living South working North, can avail of Trans-border Workers Relief which will ensure that they do not pay any additional Irish tax, unless they have income earned from other Irish sources e.g. rental or investment income or if they are jointly assessed for Irish Tax with a spouse.
There is no such relief for cross border workers, living North working South, so a top-up tax bill may be payable in the North.
For a general over view please visit the website of the Office of the Revenue Commissioners – Trans-Border Workers Relief. A detailed document providing worked tax examples is also available for download from the Revenue website – Trans-Border Workers Relief examples