Hit with a tax bill

tenreds

Bit of background,I’ve been employed in NI for three years for a Irish company that has an office there.I have a national insurance number and payed in sterling all my taxes are paid in NI for all that I earn.In 2016 my kid started college here and I had to get tax forms to get the grants which I was entitled to.I had to fill out a self assessment form and I think revenue have me down now as self employed. Today I was sent a letter to say I owe €900 tax for 2016.My question is if I’m paying my taxes in NI and I’m not self employed should I have to pay taxes here as well and what can I do about this bill.TIA for any help

gerrybbadd

tenreds wrote: »

Bit of background,I’ve been employed in NI for three years for a Irish company that has an office there.I have a national insurance number and payed in sterling all my taxes are paid in NI for all that I earn.In 2016 my kid started college here and I had to get tax forms to get the grants which I was entitled to.I had to fill out a self assessment form and I think revenue have me down now as self employed. Today I was sent a letter to say I owe €900 tax for 2016.My question is if I’m paying my taxes in NI and I’m not self employed should I have to pay taxes here as well and what can I do about this bill.TIA for any help

Are you living in the South?

tenreds

gerrybbadd wrote: »

Are you living in the South?

Yeah living in the south so can’t understand why I’m getting taxed twice when I’m already paying my taxes in the north,thanks for reply

SRASE

You are considered tax resident in Republic of Ireland so you are required to submit a tax return. You may be able to claim transborder relief on your employment income but this option would need to be selected on your income tax return as it is an optional relief to claim. If you did not select this option you may be liable to additional tax in Ireland. Note if you are paying UK social insurance for the entire year you would also likely be exempt from Irish PRSI and should tick the PRSI exemption box and state reason for exemption.

CIARAN_BOYLE

tenreds wrote: »

Yeah living in the south so can’t understand why I’m getting taxed twice when I’m already paying my taxes in the north,thanks for reply

when resident and domiciled in the south the south has the right to tax you on your worldwife income.

you should be able to claim relief under dtas and or trans border relief but you may still have to pay something.

gustafo

i also work in the uk and live in ireland and i have been for the last 5 years i work month on month off, they havn't contacted me about paying any tax in ireland surely there is a tax exempt if you are paying full tax and ni in the uk? is there not a european condition that allows you to pay tax in only one jurisdiction?

Anyway if they do contact me they can go and take a flying jump because theres no way i'm going paying tax twice.

tenreds

SRASE wrote: »

You are considered tax resident in Republic of Ireland so you are required to submit a tax return. You may be able to claim transborder relief on your employment income but this option would need to be selected on your income tax return as it is an optional relief to claim. If you did not select this option you may be liable to additional tax in Ireland. Note if you are paying UK social insurance for the entire year you would also likely be exempt from Irish PRSI and should tick the PRSI exemption box and state reason for exemption.

Spoke with accountent I am paying UK social insurance he thinks I made a mistake in my self assessment form and they are charging me prsi which I shouldn’t have to pay,said I might owe them maybe €30/40 in tax don’t mind paying that, Thanks for your help

Peregrinus

gustafo wrote: »

i also work in the uk and live in ireland and i have been for the last 5 years i work month on month off, they havn't contacted me about paying any tax in ireland surely there is a tax exempt if you are paying full tax and ni in the uk? is there not a european condition that allows you to pay tax in only one jurisdiction?

Anyway if they do contact me they can go and take a flying jump because theres no way i'm going paying tax twice.

You may in fact have a nil liability in the Republic, or you may have a modest liability for RoI tax on any non-employment income you may have.

But don't wait for them to contact you. Even if your RoI tax liablity is trivial or nil, you're still obliged to comply with RoI tax return and other formalities so as to confirm that it is nil, and if you fail to do this you are exposed to the possibility of penalties. So it's in your interests to be pro-active about this, make the necessary returns and get confirmation from the Revenue that you are tax-compliant in the Republic.

There's no EU law that requires you to pay tax in only one jurisdiction; tax law is a jealously-guarded competence of national governments. But there is a network of double taxation agreements that should mean that you don't pay tax in two different countries on the same income. But it's entirely possible that you could pay tax in one country on some of your income - e.g. income from the job that you do in that country - but tax in another country on different income - e.g. tax in the country of your residence on your non-employment income.