Income tax paid in UK - Liable for levies here

[lion_bar]

Hi,

Can anyone offer me any hope that this is wrong?

I'm a uk employee, paid in the UK where I pay UK Income tax and NI.
I live in Ireland and work from home or travel to the UK.

I don't spend 180 days outside of Ireland, so i'm resident in Ireland.

Paying income tax and NI leaves me with less take home pay (by about €3000) than if i paid income tax, prsi and levies in Ireland. This is based on a UK and an ROI tax calculator on line.

Now i've been assessed to pay the levies in Ireland for 2010 (approx €3800).

So the reality is i'll be €6,800 worse off by working in the UK and living in Ireland.

My understanding of this is because the ROI revenue gives me a credit against the income tax i would have paid in ireland if taxed in ireland. It doesn't look at how much i have paid.

And then says and you owe us levies too, which there's no allowance for as they are not income tax.

Is this right?

Thanks

 

[Gervan]

Can you claim Trans Border relief on the UK income? You have to spend at least a day a week in Ireland.
You still have to pay Health Levy but I think not Income Levy. Does anyone else know for sure?
What is Transborder Relief?

Transborder relief is designed to give income tax relief to individuals who are resident for tax purposes in the State but who commute daily or weekly to their place of work abroad and who pay tax in the other country on the income from that employment.
Subject to meeting certain conditions, an Irish resident individual may have his/her Irish income tax liability for a particular tax year reduced to what is known as the specified amount. The effect of this relieving measure is that Irish tax will only arise where the individual has other income separate to the income from the foreign employment ("qualifying employment") and will ensure that he/she will not pay additional tax on employment income which has been taxed abroad.
As the income from the foreign employment remains assessable to Irish tax, transborder relief can be claimed by way of refund at the end of the tax year when the individual submits his or her annual Return of Income. Evidence of foreign tax paid should be submitted with the claim.