(Limerick East) asked the Minister for Finance if his attention has been drawn to the fact that residents of the Republic of Ireland who work in Northern Ireland, and whose tax liability is ultimately in the Republic of Ireland, are not entitled to the £800 PAYE tax allowance or the £286 PRSJ tax allowance; the plans, if any, he has to remedy this situation; and if he will make a statement on the matter.
Written Answers. - Tax Liability of Republic of Ireland Residents Employed in North.
58.
The PAYE allowance is available only to taxpayers whose income is subject to tax on a current year basis under the Irish PAYE system. A resident of this country who is in receipt of earnings from employment in Northern Ireland is liable to Irish tax on a preceding year basis in respect of his Northern Ireland salary. He does not pay tax under the Irish PAYE system and accordingly the PAYE allowance is not granted.
The PRSI allowance is available only to certain categories of employees who contribute under the Irish PRSI system. Those engaged in employment in Northern Ireland contribute under the system in operation there. Accordingly, the PRSI allowance is not granted.