Frequently asked questions for employers and employees about National Insurance, taxes, payroll, benefits and more.
What do I need to have to start working in Northern Ireland?
In order to work in Northern Ireland, you must have a national insurance number. If you have the right to work in the UK, you can apply for a job without first having a National Insurance number. If you have an offer for a job from an employer you can apply for a National Insurance number.
How do I apply for a National Insurance Number?
If you live in Ireland, you cannot complete the online application for a national insurance number. You can apply by contacting the National Insurance Number application helpline on - +44 (0)800 587 0024. They will arrange an appointment for you.
Who do I pay my taxes and social insurance to?
As an employee you must pay taxes where you earn your income – this will be in Northern Ireland. The tax due will be deducted through your employer’s PAYE scheme.
You also have to make an annual self-assessment to Revenue in Ireland. Ireland and the UK have a double taxation agreement, which means that you will get a credit for the tax that you already paid in the UK. This makes sure that you won’t have to pay tax twice.
Cross-Border workers resident in Ireland can make use of Transborder Workers' Relief which ensures that they do not pay any additional tax to the Irish authorities even if they have paid less tax in Northern Ireland, unless they have income earned from other Irish sources, such as rental or investment income, or they are jointly assessed for Irish tax with a spouse.
How do Revenue know I am working in Northern Ireland?
You will have to complete a tax return to Revenue which includes your total foreign income at the end of each tax year.
Do I need to register with a professional body in Northern Ireland?
Yes, you may need to register with a professional body in Northern Ireland.
Will my qualifications be recognised?
Yes, your professional qualification should be recognised in Northern Ireland.
Can there be a delay in starting my job?
Yes, there are often waiting times associated with having qualifications recognised and registering with relevant professional bodies. We advise this is taken into consideration.
Will my pay grade automatically carry over to Northern Ireland?
No, you will need to discuss this with your new employer.
Do I need a bank account in Northern Ireland?
Yes, it is recommended that you have a sterling bank account.
Can I get paid into my Irish bank account?
It is advised that your wages are paid into a sterling bank account to avoid unnecessary currency exchange rates and international transfer charges.
How do I exchange my wages to Euro or how do I transfer my wages to an Irish bank account?
Funds can be transferred from your sterling bank in Northern Ireland to a Euro bank account. Check the banks charges and currency rates for this. A charge can also be made by your Irish bank when accepting the payment.
Financial technology companies offer banking apps which are commonly used for currency exchange by frontier workers. There fees can be lower and exchange rates better, but care should be taken as they are not within the Financial Services Compensation Scheme.
Where do I claim my welfare benefits, like child benefit or maternity benefits?
In general, the country you work in is responsible for paying social welfare payments. For example, if you are working in Northern Ireland and your family lives in Ireland, the UK pays child benefit. But if the rate of Child Benefit you get in the UK is less than Child Benefit in Ireland, you can apply to get your payment topped up by Ireland.
Do I have to inform Revenue that I am working in Northern Ireland?
If you are a resident in Ireland, there is an obligation to report your cross-border income to Revenue via an annual tax return.
Will I have to pay taxes and National Insurance in both countries?
No, National Insurance/ PRSI is only paid to the country in which you work, e.g., if you work in Northern Ireland, you will only pay national insurance.
Do I get any healthcare benefits in Northern Ireland?
As a cross-border worker, you are entitled to NHS healthcare which includes free GP treatment. Dental treatment is subsidised and generally not free.
That right does not extend to your family. However, as a cross-border or frontier worker resident in Ireland, you are also entitled to an Irish medical card from the Health Service Executive in Ireland. This entitles you to free public healthcare in Ireland. This may also apply to your spouse and any children, provided you both have no other income sourced in Ireland, do not pay PRSI and do not claim any social welfare benefits.
Can I avail of antenatal care?
If you are working in Northern Ireland, you can choose to have your baby there and access healthcare services. This does not apply to you if only your partner (the partner who is not pregnant) works in Northern Ireland.
What happens if I take ill?
If you are unable to work because of illness you can apply for sickness benefits in Northern Ireland if you have sufficient National Insurance contributions. If you don’t, you can request your PRSI contributions to be transferred to Northern Ireland to cover your shortfall. The sickness benefits will be limited as they will be based on your National Insurance contributions. You will then have to apply in Ireland for any additional sickness benefits.
Will my Income Protection plan cover me in Northern Ireland?
Your Income Protection Plan may cover you for cross-border work in Northern Ireland, however it is important to check these details with your Financial Adviser to confirm.
Where do I claim my State Pension?
Contributions made in Northern Ireland and Ireland can be combined when you are applying for your pension. You may also be entitled to a pension from both countries.
Do I still pay PRSI to Revenue in Ireland?
No, if you work in Northern Ireland, you pay National Insurance to Northern Ireland, you do not have to pay PRSI to Ireland.
What happens if I am made redundant or sacked?
Frontier workers who are wholly/fully unemployed (e.g. made completely redundant) receive unemployment benefit in the state in which they live.
Frontier workers who are partially or intermittently out of work (e.g. reduced working hours or temporary layoff) receive unemployment benefit in the state where they were last employed.
Social Insurance contributions paid across the border (PRSI or National Insurance) can be combined to help the person qualify for unemployment benefits. However, if they still do not have sufficient contributions paid, they will be subject to a means-test and may qualify for a means-test benefit instead e.g. Irish Jobseeker Allowance or UK Universal Credit
Is my car insured to commute Cross-Border?
You will need to contact your insurance company to confirm details of your Cross-Border commuting and amend the policy accordingly. Ensure they are aware that you will be travelling to Northern Ireland for work.
Can I work from home?
If you live in Ireland and work from home full time for a Northern Irish employer, you will have to pay PRSI and tax to Revenue. Your employer will have to change you to an Irish payroll as you are not working in Northern Ireland. Any state benefits you are being paid e.g. Child benefit/ Universal credit from Northern Ireland will stop as you will not be paying National Insurance. Healthcare benefits will also stop
Frontier workers resident in Ireland who work from home will pay extra Irish tax as they will not be entitled to the Trans Border Workers Relief. This relief is for people who are resident in Ireland, but work and pay tax in another country. You can claim it if you travel daily or weekly to your place of work outside Ireland.
Will my qualifications automatically carry over to Northern Ireland?
No, you will need to discuss this with your new employer.
Can I be employed in both countries at the same time?
Yes, but it is very complicated as you can only pay Social Insurance in one country. A decision will have to be made to decide which country you will pay your Social insurance to. Payroll will need to be notified if they are not to deduct social insurance. An additional income tax charge will also likely apply as you could potentially be underpaying tax in both countries. Please seek professional advice before working in two countries at the same time.
Is there any extra costs to working cross-border?
Yes, you will potentially incur extra banking charges, currency charges and may have to employ an accountant to complete your annual tax returns.
Can I avail of hybrid working arrangements?
Yes, you can avail of hybrid working arrangements.
If the time spent out of the office is still in Northern Ireland, then you will stay within Northern Ireland’s national insurance and income tax rules, e.g. if you use a Hub in Northern Ireland and don’t work from home in Ireland.
If the days, you are not in the office are spent in Ireland you will be subject to additional Irish payroll and Income tax rules as well as Northern Ireland payroll rules. A decision will be made to which Social Insurance system you will contribute to. This could mean the loss of any benefits from Northern Ireland as you will not be paying national insurance. An additional tax liability may arise for you. You will need to complete a tax return to Revenue annually to pay any additional taxes owed. Please seek professional advice if you are considering these options.
What is a Shadow or Dual payroll?
This is a second payroll system your employer would have to introduce to pay your taxes in both countries if you are availing of hybrid working outside of Ireland or you are working from home. This allows your employer to allocate and pay taxes to both countries based on the days you work in each jurisdiction. Please seek professional advice before changing to a shadow or dual payroll.
I want to apply for a mortgage. Are there any issues with working cross-border?
Some banks will decline you for a mortgage because you do not work in Ireland. Inform your Mortgage Broker that you are a cross-border worker, and they can then select from the banks that accept sterling income.
Article reviewed: Dec 24