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Frontier workers and the Income Levy

The Income Levy, which came into effect on 1 January, 2009 was a levy payable on gross income, including notional pay, before any relief for capital allowances, losses, or pension contributions.  It was abolished with effect from 1 January 2011.

Source: Office of the Revenue Commissioners

The Income Levy, which came into effect on 1 January, 2009 was a levy payable on gross income, including notional pay, before any relief for capital allowances, losses, or pension contributions.  It was abolished with effect from 1 January 2011.

Due to abolition of prescription charges in Northern Ireland in April 2010, frontier workers (living in the North and working in the South) may be eligible to reclaim Income Levy payments for a portion of 2010.  The following information has been sourced from:

www.revenue.ie – Income Levy FAQ

Section 2.4

I have a medical card – do I pay income levy on my wages?

Persons entitled to a full medical card are specifically excluded from the income levy. The exemption exists for people who hold a full medical card. It does not exist for people who hold a GP only medical card.

The individual does not need to hold the full medical card for the full year to qualify for the exemption. The exemption is due as long as the individual held a full medical card for some period during the year. The individual should supply sufficient evidence to their employer/pension provider that they hold a full medical card. The employer/pension provider should stop deducting the income levy and can refund immediately any amount of income levy already deducted from the previous 1 January. It is not necessary for the employer/pension provider to wait until the end of year to make any refund due in medical card cases.

Where a medical card has been issued by any other State, only where those cards have an entitlement to full exemption from prescription charges are to be treated as equivalent to full medical cards for the purposes of the exemption from levy. Any issues of doubt should be referred to Revenue.

UK and Northern Ireland Medical Cards are to be treated as “Doctor Only” medical cards unless they are accompanied by certification that the recipient is entitled to full exemption from prescription charges also.

Note:

As a consequence of the abolition of prescription charges in Northern Ireland on April 2010 all holders of Northern Ireland medical cards will qualify for the exemption from income levy for 2010 and subsequent years. The conditions which were applicable for 2009 will remain.

Persons who are the holders of the Health Amendment Act Card are entitled to the same exemption rights as a holder of a full medical card.

The European Health Insurance Card only entitles the bearer to necessary healthcare in the public system of any EU / EEA member state or Switzerland if they become ill or injured while on a temporary stay in that country. In Ireland it provides for access to hospital care similar to that provided in public hospitals funded by the State. It is not a medical card for exemption from income levy.

Further Information