The Universal Social Charge is a tax payable on gross income from most sources, including notional pay, after any relief for certain capital allowances, but before pension contributions. InJanuary 2011 it replaced the abolished Income and Health Levies.

The rates of Universal Social Charge vary, for a list of current rates and exemptions please visit Revenue – Universal Social Charge (USC)

Cross border issues

Living South, Working North

A person who is resident in the Republic of Ireland and works in Northern Ireland may be eligible for Transborder Workers’ Relief, subject to meeting the relevant conditions.

Where the relief applies, employment income earned from duties carried out in Northern Ireland is generally exempt from Irish income tax and Universal Social Charge (USC) is not charged on that exempt employment income.

Cross-border workers may still have Irish tax filing obligations and should ensure that they report income and claim any available relief correctly. Eligibility depends on individual circumstances, including residence, employment location and the nature of the income.

Further information is available from Irish Revenue – Transborder Workers’ Relief and Universal Social Charge guidance.

Living North, Working South

People who live in Northern Ireland and work in the Republic of Ireland need to consider both Irish and UK tax obligations.

A cross-border worker living in Northern Ireland and earning employment income in the Republic of Ireland will normally pay Irish income tax, Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) through the Irish PAYE system.

Depending on their circumstances, they may also have UK tax reporting obligations. Where a UK tax liability arises, the UK–Ireland Double Taxation Convention generally provides relief to prevent the same income being taxed twice. Irish tax paid, including qualifying Universal Social Charge, may be taken into account when calculating any UK tax due.

Tax treatment depends on individual circumstances, including residence status, where duties of employment are carried out, income levels and the type of employment. Cross-border workers should seek advice from the relevant tax authorities or a qualified tax adviser.

Further information is available from:

• Irish Revenue – Cross-border workers
• HM Revenue & Customs (HMRC) – Working abroad and foreign income
• UK–Ireland Double Taxation Convention

Page last checked: July 2016

Links last checked: July 2026

This webpage is for general information purposes only and while we endeavour to keep it up-to-date, errors may occur.  It is very important that you check with the relevant body to ensure the information is current and is applicable to your situation: – North /  South

If you would like to suggest amendments or highlight new information that could be useful to others please don’t hesitate to get in touch.

This webpage is for general information purposes only and while we endeavour to keep it up-to-date, errors may occur. It is very important that you check with the relevant body to ensure the information is current and is applicable to your situation.

If you would like to suggest amendments or highlight new information that could be useful to others please don’t hesitate to get in touch.