Despite Cross Border Worker Relief being in place to allow the tax liability of Republic of Ireland residents to be waived, this only relates to a very small number of permissible actions and is largely ineffectual.
Under the current rules, Republic of Ireland domiciled employees working for a Northern Ireland based company are subject to a ‘double tax’ on their income if they are to perform any work-related activities in the Republic of Ireland.
Whereas a Northern Ireland resident employee can work in the Republic of Ireland for up to 60 days without triggering a tax liability, an RoI resident employee that works for a company in NI loses the ability to claim Cross Border Worker Relief
for carrying out anything more than just basic duties. This does not work for the employees we represent.
BENEFITS OF CHANGE
- The current legislation is now outdated and does not reflect current working practices.
- Greater fluidity in where workers carry out their employment activity will increase productivity, promoting economic development in traditionally under invested regions on the island of Ireland.
- Giving people greater flexibility in where they work and live will have a significant impact on direct; indirect and induced financial benefits for local communities.
- Greater numbers of people being given the opportunity to reside in an area of their choice means that disposable income is spent in areas which benefit the most – local shops; restaurants etc.
- Technological advancements and migration to online working is now commonplace.
- Ability to work from home provides immediate remedy for business continuity and futureproofs against future pandemics; emergencies and upheaval.
- Would have real and practical benefits in establishing a greater work / life balance (Less time travelling; More time spent with family; Flexible working day; Assist with periods of reintegration back into work after maternity leave, sick leave or bereavement).
- Would reduce carbon emissions due to the decrease in extensive commutes by thousands of workers each day and alleviate traffic build up due to fewer return trips.