The 31st January puts fear into most business owners and freelance workers.
Hours spent sifting through receipts, an abundance of paperwork and often a hefty tax bill at the end of it. Not to mention the threat of a fine if you file your return late.
It does to many, but not for the thousands of cross-border workers who are living in the south, and working in the north and failing to file tax returns in both jurisdictions.
Michael O’Hare, director, ASM Chartered Accountants which has four offices in Northern Ireland and two in the Republic of Ireland is warning cross-border workers not to get caught out and face possible fines. He said: “This is something we have seen a lot of over the years, people living in one jurisdiction and working in another and completely unaware that they may potentially have to pay income tax liability both where they live and where they work.
“As a cross-border worker and or business owner, individuals must pay income tax in the country where they earn their income, but their ultimate tax responsibility is with the country where they live so they must submit an annual self assessment each year.
“For those individuals living in the north and working in the south, they will pay tax irectly to the Irish Revenue Commissioner. However, they will also be required to submit an annual Self Assessment on foreign earnings to HMRC.
“The good news is that they will be eligible for tax relief (based on Irish tax and USC paid) due to the Double Taxation Agreement between the UK and Ireland.
“For those who live in the south and work in the north they will pay tax directly to HMRC. However, they will also be required to submit an annual Self Assessment return to the Irish Revenue Commissioner and will be eligible for Trans-border Workers Relief.”
Michael continued, “We are urging anyone in this situation and unaware of their full requirements to contact their accountant immediately who can help rectify the situation and help to reduce any likely fines which may faced by not complying with the regulations.”
Individuals who are concerned they may have underpaid tax and would like a review undertaken can contact Catriona Gorham, Tax Manager, ASM Chartered Accountants, Dundalk on 0035342 93 31637 or Ronan McGuirk, Tax Director, ASM Chartered Accountants, Newry on 028 302 69933.