Paying Irish PRSI on UK income

johnsmith6256

Hi,

I have an employment contract in the UK and I pay tax and social contribution at source in the UK.

I am living in Ireland. I was told that I need to declare my income as self-employed in Ireland. I was told that there would be no tax in Ireland because I paid it in the UK (Transborder relief).

My question is: Does the Transborder relief also applies to PRSI? Or do I need to pay PRSI in Ireland too? It doesn't seem fair to have to pay it twice.

SRASE

You should only pay social insurance in one EU country at any one time.

As you are paying UK social insurance you are not liable to Irish social insurance (PRSI). You tick the PRSI exemption box in the income tax return and state reason as paying social insurance in UK.

Your foreign employment income should be declared under "Foreign income" and not self employed income.

adrianw

johnsmith6256 wrote: »

Hi,

I have an employment contract in the UK and I pay tax and social contribution at source in the UK.

I am living in Ireland. I was told that I need to declare my income as self-employed in Ireland. I was told that there would be no tax in Ireland because I paid it in the UK (Transborder relief).

My question is: Does the Transborder relief also applies to PRSI? Or do I need to pay PRSI in Ireland too? It doesn't seem fair to have to pay it twice.

Hi Johnsmith,

If you have an employment contract with a UK company and perform all duties in the Republic (just to clarify by Ireland you do mean tge Republic of Ireland) your employer needs to register as an employer in Ireland. The fact you may be their only employee in Ireland and they might do nothing else here is irrelevant. Revenue will want their taxes and will have primary taxing rights to them.

Sounds to me that your employer is either being lazy or your 'employment' contract is not an employment if they are telling you to register as self employed.

Kind regards,
Adrian

Mrs OBumble

johnsmith6256 wrote: »

I am living in Ireland.

Which country do you perform your duties in?

johnsmith6256

I live in the Republic of Ireland and my UK contract is a real employment contract under PAYE in the UK. I have a NI number (UK equivalent of PPS number) and I get payslips.

But as I work from home I prefer to be in ROI instead of the UK. Revenue would probably never know if I didn't declare my taxes in ROI, but I still want to do it.

johnsmith6256

SRASE wrote: »

You should only pay social insurance in one EU country at any one time.

As you are paying UK social insurance you are not liable to Irish social insurance (PRSI). You tick the PRSI exemption box in the income tax return and state reason as paying social insurance in UK.

Your foreign employment income should be declared under "Foreign income" and not self employed income.

Thanks. Do you have a link to Revenue website or to Citizensinformation about that?

johnsmith6256

Do I need to pay USC in ROI?

barneystinson

johnsmith6256 wrote: »

Do I need to pay USC in ROI?

Yes.

And based on what you've said you should be paying Irish PAYE and PRSI on your employment income to the extent that you're performing your duties here.

hognef

adrianw wrote: »

Hi Johnsmith,

If you have an employment contract with a UK company and perform all duties in the Republic (just to clarify by Ireland you do mean tge Republic of Ireland) your employer needs to register as an employer in Ireland. The fact you may be their only employee in Ireland and they might do nothing else here is irrelevant. Revenue will want their taxes and will have primary taxing rights to them.

Sounds to me that your employer is either being lazy or your 'employment' contract is not an employment if they are telling you to register as self employed.

Kind regards,
Adrian

This is exactly my experience. I was employed in Norway, working from home in Ireland. My employer had to register for PAYE in Ireland even though they had no other connection to Ireland. I paid no tax or social contributions to Norway.

It was a simple process, and company returns were made through the ROS website. I actually handled all of this myself, as my employer was small, and it was easier that way.

This was nearly a decade ago, so elements may have changed.

johnsmith6256

hognef wrote: »

This is exactly my experience. I was employed in Norway, working from home in Ireland. My employer had to register for PAYE in Ireland even though they had no other connection to Ireland. I paid no tax or social contributions to Norway.

It was a simple process, and company returns were made through the ROS website. I actually handled all of this myself, as my employer was small, and it was easier that way.

This was nearly a decade ago, so elements may have changed.

Thanks for your feedback.