Transborder Workers Relief

O

OLD MONEY

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My wife and I live in Donegal. My wife works in Northern Ireland in the Health Service and I work in Donegal. Since she started working in 2013, we have been able to claim Transborder Workers Relief each year in June when she gets her P60, by simply filling out Form 12, submitting both P60`s and asking for a balancing statement. This year when we applied she got a letter stating that under Section 959A of the TCA 1997 she is now regarded as a "chargeable person" for the purpose of Income Tax Self Assessment. "Income from a foreign employment is assessable under Case III Schedule D", and she is obliged to submit Form 11.
Why the change? Is this because of Brexit and because Transborder Workers Relief can only be claimed if you are working in another EU country?
 
There have been no changes yet due to Brexit so I think it's safe to say that's definitely not the reason. Does your wife have any income other than that on the P60?
 
No other income. Our source of income has`nt changed from previous years. The letter also asks her to register with ROS, but ROS seems to be for Self Employed earners, not PAYE. Maybe it`s a mistake although the letter is signed by the District Manager. I will try ringing them tomorrow, to see what`s going on.
Thanks for replying.
 
I spoke to Revenue on the phone and it`s not a mistake. Anyone working in Northern Ireland, and earning more than €5000 p/a is regarded as a "chargeable person" under Section 959A of the TCA 1997. Revenue just have`nt been enforcing it until now. I expect that a lot more cross-border workers will be getting a similar letter soon.
 
Hi Old Money,

Can I ask you (or anyone else who has experience) a few opinions on Trans border workers relief.

My wife & I also live in Donegal. I work in NI and my wife works in Donegal. I've been working in NI since 2012. I never heard of this relief until I read your post back in Jun. I got my act together and made contact with Revenue in July. They asked that I send all my P60s into their office, which I did.

They responded last week and said I have to complete Form 11 before Oct 31 each year from now (2017) on. That's fine I can do that (I hope its straight forward).

The questions I have relate to the P21's I received the next day stating we have underpayments of PAYE for the years 2014, 2015 & 2016.

I've been reading up on calculating Trans border relief all weekend and believe their calculations are right. I am disappointed and surprised about these underpayments. Have you or anyone any experience of this?

I believe the tax was under paid as my wife salary is small (PT work/Illness benefit/Maternity pay) and as such paid no tax in these years at source - would this be correct? And that it is not a tax on my NI income which is taxed etc there at source?

Am I right to assume that if all our income was earned in the South I would have had to pay this tax anyway? And it only annoys me now because it seems like I'm being charged extra whereas in reality I'm not? Looking at my calcs the Trans Border Relief is saving us money in tax each year (that's good).

Can anyone confirm that if my wife stops work that no Irish tax will be due as all our income will be earned and taxed in NI?

I've attached a file showing my sample calculation, anyone care to comment? Are my figures right/wrong?

Thanks for reading,

WM
 

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waterman said:
Can anyone confirm that if my wife stops work that no Irish tax will be due as all our income will be earned and taxed in NI?
Click to expand...
If all your income is covered by transborder relief, you'll have no Irish tax liability. If your wife still has taxable social welfare income, you could still have some Irish tax due.

I've attached a file showing my sample calculation, anyone care to comment? Are my figures right/wrong?

Thanks for reading,

WM
Click to expand...
Your gross tax should be €11,000 rather than €10,440: you seem to be calculating 57,800@20% + (-2,800)@40% instead of 55,000@20%.

That correction gives
Irish Tax Liability (if all income had been earned in IRL) = €4,400.00
Specified Amount (Operation of Secton 825A) = €1,200.00
Trans border relief = €3,200.00.

If you have any other credits such as health expenses (you mentioned your wife was on illness benefit) in any of those years, that would reduce the bill a bit.
 
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