Double Taxation Relief

Saint Sonner

Hi,

I started working in ROI in April this year but live in Northern Ireland. I know that I am able to claim the difference on overpaid PAYE but I was wondering if anyone could help on the following:

When can I make the claim?

Where do I get the forms to claim?

Am I able to claim any relief on PRSI versus NIC?

2ndcoming

When the year is over you'll need to provide Revenue with a copy of your P60/P45 for your Irish employment and also a statement from NI Revenue detailing any income you had in the north for the calendar year. If you can't get this you'll need a statement covering the 2 relevant UK tax years.

I'm not sure on the PRSI issue, maybe someone else will be able to cover that.

Saint Sonner

Thanks for that

Is there a standard form to send along with this info?

2ndcoming

Not really I don't think. Just put a note with your documents stating you want to get a review of your tax paid in Ireland and that will sort it.

mozattack

You'll likely to be taxed in the UK on this income so when including the income they should include a credit for income tax and USC paid.

Re PRSI, not certain but if the reverse was true I think in Ireland we would include the UK PAYE income as an excluded employment thereby not imposing prsi on same. I'd expect the same to happen in reverse

Saint Sonner

I have just gotten some more advice on this. The advice was that If you are working North and living south you could reclaim tax but if you live north and work south you cannot claim tax back.

Seems very strange or illegal?

Anyone know anymore on this?

2ndcoming

Yeah that's not true. Double taxation agreements have to work both ways or not at all. The system is basically the same both sides of the border, only real difference being the tax year (still Apr-Apr in the UK).

Saint Sonner

2ndcoming wrote: »

Yeah that's not true. Double taxation agreements have to work both ways or not at all. The system is basically the same both sides of the border, only real difference being the tax year (still Apr-Apr in the UK).

http://borderpeople.info/a-z/taxation.html

Am I reading this correct - seems a bit of a double standard!

nompere

Yes - you are reading it correctly. There's a tax relief in Irish law given to residents of Ireland that isn't mirrored in UK legislation for UK residents in similar circumstances. Until the law is changed all the tax authorities are going to do is to operate the law as enacted. I don't see that the double tax treaty comes into this.

It might well be incompatible with EU law, but that's going to require a trip to the UK Supreme Court, and then the European Court.

Unlike the Revenue Commissioners it isn't unknown for HMRC to agree to pay all the costs of litigation in cases of public interest.

2ndcoming

If you live in the North you don't get Trans-border worker's relief as that's an Irish tax credit granted by Revenue to Irish residents and as a UK resident it's up to HMRC to provide that relief or a similar one to you, but you can still claim tax paid in the south back by submitting a claim to Revenue as you will usually be due the ordinary single person's tax credits the same as a resident would be.

If married you can claim married tax credits retrospectively by providing a statement of your spouse's UK income at the end of the year.

Saint Sonner

2ndcoming wrote: »

If you live in the North you don't get Trans-border worker's relief as that's an Irish tax credit granted by Revenue to Irish residents and as a UK resident it's up to HMRC to provide that relief or a similar one to you, but you can still claim tax paid in the south back by submitting a claim to Revenue as you will usually be due the ordinary single person's tax credits the same as a resident would be.

If married you can claim married tax credits retrospectively by providing a statement of your spouse's UK income at the end of the year.

But I am getting this already through my payslip provided by the southern company I work for????

2ndcoming

Yes, in which case you probably won't be due a refund as you're already being treated the same as if you were resident.

You don't get a refund just for living outside the state, you have to be due one the same as someone resident might be.

The transborder relief only protects Irish residents from paying a higher rate of tax than they would have in Ireland on their UK income, it's not an automatic ticket to a refund.

Saint Sonner

I just thought under the European Human Rights Laws which both countries should adhere I would be treated the same as anyone else.

I think there has been cases in the past under Article 45 of TFEU under the four economic freedoms:
Freedom of movement of:
1. Goods
2. Services
3. Labour
4. Capital

Any one want to fight a free legal case for me???

2ndcoming

You've been granted the basic credits assigned to everyone who works in the republic and have the right to claim any others available once you meet the qualifying conditions.

I don't see where you feel you're not being treated the same as anyone else really?

If you mean you're not being treated the same as an Irish resident re the trans-border relief, well, you're not an Irish resident so you're bound by the tax code of your state of residence. EU Countries have the right to autonomy on the tax rates they set or reliefs they offer their residents, and that has nothing to do with the EU freedom of movement article you posted above, that relates to refusing citizens of other EU countries to come and work in your EU country. You're free to work anywhere you want but you will be charged tax at the local rate.

Saint Sonner

Good point.

I wonder would it make a difference if I remitted the income to the UK and tried to pay HMRC the tax then be able to claim something back.

I'd say I'm clutching at straws here!