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 Ireland?
If you are living outside Ireland, you need an Irish Social Security Number. This is known as a PPS Number - this can then be used to interact with the different government departments.
How do I apply for a Social Security Number?
You need to complete an application form for a PPS Number (REG1) and also provide:
- evidence of your address
- evidence of your identity
- evidence of why you need a PPS Number
- a PPS Number Exceptional Registration Application Form
- a completed questionnaire.
What happens next?
Once you have your PPS number, please give this to your new employer.
Apply online for a MyGovID. It is a single account that lets you use services from many government departments in Ireland. Go through the Verify my account process and apply for a Revenue MyAccount.
How do I link my PPS number to my employer if this is my first job in Ireland?
This can be done on Revenue MyAccount, this service is for anyone who is starting a job in Ireland for the first time.
To add a new job, you will need:
- Your new employers tax registration number
- The date your job starts and how often you will be paid
- An estimate of your overall incomes.
Who do I pay my taxes to?
As a cross-border worker, you must pay income tax in the country where you earn your income, but your ultimate tax responsibility is with the country where you live so you must submit an annual self-assessment tax return each year declaring your worldwide income. A Double Taxation Agreement is in place between the UK and Ireland so you will be awarded a credit for any tax and USC paid in Ireland.
Who do I pay my social insurance to?
Social insurance is your PRSI in Ireland or National Insurance in Northern Ireland. If you work in Ireland, you will pay PRSI. This entitles you to certain state benefits in Ireland if you are eligible.
Do I have to inform HMRC that I am working in Ireland?
Yes, If you are a resident in the UK, there is an obligation to report your cross-border income to HMRC via an annual UK tax return. You may owe additional tax to HMRC.
Do I need to register with a professional body in Ireland?
Yes, you may need to get your professional qualifications recognised to work in your profession in Ireland.
This GOV.ie PDF details regulated professions and their relevant authorities in Ireland.
Will my qualifications be recognised?
Yes, your professional qualification should be recognised in Ireland.
Read guidance from GOV.UK on:
Read the Irish Citizens Information guidance on the recognition of professional qualifications
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. Allow time for this process to complete when planning your start date.
Will my pay grade automatically carry over to Ireland?
No, you will need to discuss this with your new employer.
Can I use the married tax credits and allowances in Ireland?
Not normally. You will be taxed as a single person in Ireland as you are a non-resident. If your spouse has no worldwide income, you may be able to use it, but this may result in a tax liability to HMRC.
Do I need a bank account in Ireland?
Yes, you will need to open a bank account in order to receive your wages in Euro.
Can I get paid into my Northern Ireland / sterling bank account?
It is advised that your wages are paid into a Euro bank account to avoid poor currency exchange rates and international bank transfer charges.
How do I move my wages to Northern Ireland or how do I exchange my wages to sterling?
Funds can be transferred from your euro bank in Ireland to a sterling bank in Northern Ireland. Check the bank charges and currency rates for this. A charge can also be made by your UK 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?
As a cross-border worker you will pay social insurance contributions – PRSI – which link you to the Irish social security system. Therefore, you will be entitled to apply for Maternity Benefit from the Department of Social Protection.
To get Maternity benefit you must have a certain number of paid PRSI contributions and be in insurable employment up to the first day of your maternity leave. CitizensInformation.ie has more information on maternity benefits.
If you are eligible, Child benefit can be paid to you because you pay PRSI. It is dependent on your family circumstances. It can be the full payment or a supplementary payment.
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 Ireland, you will only pay PRSI. You must pay income tax in the country where you earn your income, but your ultimate tax responsibility is with the country where you live so you must submit an annual self-assessment tax return each year declaring your worldwide income. A Double Taxation Agreement is in place between the UK and Ireland so you will be awarded a credit for any tax/USC paid in Ireland. This will offset tax owed to HMRC.
Do I get any healthcare benefits in Ireland?
Yes, you entitled to apply for a medical card. As a frontier worker, you are entitled to access healthcare on the same terms as those that would apply to a resident of the state.
Am I still entitled to use the NHS?
Yes, as you are still a resident in Northern Ireland, you are entitled to use the NHS. They may request proof of your compliance with HMRC to allow you to continue to use their services free of charge.
What happens if I take ill?
If you are unable to work because of illness you can apply for Sickness benefits in Ireland, if you have sufficient PRSI contributions. If you don’t you can request your National insurance contributions to be transferred to Ireland to cover your shortfall. The sickness benefits will be limited as they will be based on your PRSI contributions. You will then have to apply in Northern Ireland for any additional sickness benefits.
Will my Income Protection plan cover me in Ireland?
Your income protection plan may cover you for cross-border work in Ireland, however it is important to check these details with your Insurance company or Financial Adviser to confirm this.
Where do I claim my State Pension?
If you work in Ireland your PRSI and National Insurance payments you may have paid in Northern Ireland from previous employments, can be combined to help you qualify for a Northern Ireland State Pension. You could potentially be entitled to a pension from both Northern Ireland and Ireland depending on the length of time you are employed in Ireland.
What happens if I don’t have enough PRSI contributions for an Irish state pension?
If you do not have enough PRSI to get an Irish pension your PRSI contributions can be sent to Northern Ireland to calculate if you are due an additional pro rata pension payment.
Do I still pay national insurance to the UK?
No, as an employee in Ireland you do not pay national insurance to the UK if you pay PRSI in Ireland.
What happens if I am made redundant or sacked?
Frontier workers who are fully unemployed receive unemployment benefit from Northern Ireland.
Frontier workers who have their hours substantially reduced or are on temporary layoff may receive unemployment benefit in Ireland if they meet the eligibility criteria.
Is my car insured to commute cross-border?
You will need to contact your insurance company and tell them your commuting cross-border and ask them if you are still fully insured. Some Insurance companies do not cover you to commute cross-border to work.
What happens my student loan payments?
Your student loan repayments cannot be deducted through Irish payroll. They will be calculated when you complete your annual tax returns to HMRC. You can inform the Student Loans Company that your repayments will be due from your tax return or you can arrange a payment plan with them.
Can I work from home?
If you live in Northern Ireland and work from home for an Irish employer you will have to pay National insurance and tax to HMRC. Your employer will have to change you to a Northern Ireland payroll as you are not working in Ireland. Any state benefits you are being paid e.g. child benefit from Ireland will stop as you will not be paying PRSI.
I want to apply for a mortgage in Northern Ireland. Are there any issues with working in Ireland?
Some banks will not use your Euro income when assessing you for a mortgage. They will only accept sterling income. Inform your Mortgage Broker that you are a cross-border worker and they can then select from the banks that accept Euro income.
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.
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 Ireland, then you will stay within Ireland’s PRSI and income tax rules, e.g. if you use a Hub in Ireland and don’t work from home in Northern Ireland.
If the days you are not in the office are spent in Northern Ireland you will be subject to additional HMRC payroll and Income tax rules as well as Irish 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 Ireland as you will not be paying PRSI. An additional tax liability may arise for you. You will need to complete a tax return to HMRC 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.
Are 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.
Article reviewed: Dec 24