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Transborder relief and PRSI/USC

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  • 24-08-2016 2:09pm
    #1
    MatthiewEnis
    Registered Users Posts: 4 ✭


    Hi,

    I have a question about Transborder relief and PRSI/USC.

    I work in the UK and come back to ROI everyday.

    Last year, an accountant filled the Form 11 for me. He put a Transborder relief for the amount of tax paid in the UK. So I did not pay tax. However he did add "PRSI-Self" at 4% meaning I had to pay 1000€ to Revenue. He did not add any mention about USC.

    This year I am doing my Form 11 myself (Like a big guy :) ) and I'm reading online that I should not paying social security in 2 EU countries at the same time.

    I'm wondering then why the accountant added "PRSI-Self" at 4% last year. Is there any chance that the "PRSI-Self" at 4% is a voluntary contribution?

    On my form 11 for this year, should I claim an exemption for both USC and PRSI?

    Kind Regards,
    Matt.
    Tagged:


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    #2
    SRASE
    Registered Users Posts: 86 ✭✭SRASE


    Transborder relief covers USC and income tax. It does not cover PRSI. As you have stated, you should not pay social insurance in more than 1 EU country at any one time. You should tick the box on the Form 11 claiming an exemption from PRSI and state reason that you are paying social insurance in the UK.

    You should contact your previous accountant as to why you paid PRSI last year but it may have been an error.


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    #3
    DmanDmythDledge
    Registered Users Posts: 883 ✭✭✭DmanDmythDledge


    Also because it is within the 4 year time limit you can amend the income tax return from last year.

    I would look into receiving an exemption from social insurance in UK and make the voluntary payments in Ireland instead. It's good to have the security of making the payments in Ireland rather than another country just in case you ever need the benefits of paying them.


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    #4
    MatthiewEnis
    Registered Users Posts: 4 ✭MatthiewEnis


    Thank you guys.

    Just wanted to let you know that I asked the accountant and his reply is below:
    You are correct in saying that social security should only be paid in one state. When submitting your tax return Revenues Online service automatically applied PRSI to your cross-border income, however I see from your payslips that social security was also paid in the UK. I will need to look in to this a little more to see where you are insurable, if social security is payable in Ireland we will need to apply for a refund from HMRC, if it is payable in the UK we will need to apply for a refund the Revenue Commissioners here in Ireland. I will get back to you later today, or tomorrow at the latest re this.

    Thank you both again for your help.


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    #5
    MatthiewEnis
    Registered Users Posts: 4 ✭MatthiewEnis


    Hi,

    I have another question about USC.

    In 2015 I had a very small salary (under the €13000 threshold) paid to me through PAYE in Ireland. However if taking into account my income from the UK, my full income was over €13000.

    I know that I don't have to pay for USC on the UK income (because of the transborder relief), but what about the Irish PAYE income. The Irish PAYE income is under the threshold, but if I take the full income, then it is over the threshold

    My question is, when calculating USC, should we take the full income, or only the income on which USC is due?

    Regards,
    Matt.


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