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Tax on income in Ireland and N Ireland?

  • 16-06-2011 12:15pm
    #1
    DrPhilG
    Registered Users, Registered Users 2 Posts: 12,608 ✭✭✭✭


    I live in the South but work in the North, have done for years. Income has always been in the North and pay tax on it there.

    I am now going to rent out some land in the South. What is the situation with regards to tax? Is there a tax free allowance? Or is that negated by the fact that I earn a full income in the North?

    Rental amount in the South will be just €3,500 a year.

    I have an appointment with an accountant to find out, just wondered what I could find out here first.


Comments

  • #2
    DrPhilG
    Registered Users, Registered Users 2 Posts: 12,608 ✭✭✭✭DrPhilG


    Edit, spoke too soon, may have the answer.

    From citizens advice website...
    Cross-border workers

    If you are resident in Ireland and commute daily or weekly to your place of work in another country where you pay tax, then you may qualify for Trans-border Workers Relief. This reduces your tax in Ireland to take account of the tax that you have paid abroad. It does this by reducing the tax you pay in Ireland on your total income so that it is in proportion to the amount of income from Irish sources.

    For example, take the case where your total income was €50,000, of which €5,000 was earned in Ireland and the remainder (€45,000) was earned and taxed abroad.

    The proportion of your total income that is Irish income is 1/10 (5,000 divided by 50,000).

    Your Irish income tax liability is calculated as usual on the full amount of your income, €50,000 .

    But under Trans-border Workers Relief, this amount of tax is then divided by ten to give the tax that you have to pay in Ireland.
    There are certain conditions on the duration and place of employment. More information on Trans-border Workers Relief is available.


  • #3
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    As above it is also called cross border relief- go to www.revenue.ie and enter cross border workers relief.

    If you have all your employment in come in the UK and some rental income in the South it will become relevant.

    By virtue of the fact you will have rental income and you will fall into self assessment and will be oblidged to file a Form 11.

    More infomation is available in the guide to self employment in the stickies.


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