Border People provides case studies and frequently asked questions (FAQs) illustrating the dilemmas facing people who cross the border and suggest ways to resolve these.
These are real genuine problems identified by users of the website coupled with advice from staff of the Borderwise project, a cross-border initiative developed in partnership between Citizens Advice (Northern Ireland) and Citizens Information Board (Ireland).
Q: I have been unemployed for over a month and I have being living in Northern Ireland during that time in rented accommodation. Should I apply for unemployment benefit in the north or the south?
A:
I presume that you were last employed in the Republic in which case EU Social Security rules determine who is responsible for paying you a contribution based unemployment benefit on the basis that you are a 'frontier worker'. If you are 'partially or intermittently' unemployed, e.g. lay off for a period or short time working, the Republic will make an unemployment payment if you have sufficient 'stamps' paid. If you are wholly unemployed, e.g. redundancy or other dismissal, N. Ireland/UK is responsible for making an unemployment payment (contribution based Jobseeker's Allowance) and you can rely on Irish stamps, PRSI, to satisfy the northern contribution conditions. Unfortunately the northern payment is considerably less than the southern one but there is no requirement that the two systems/rates of payment be the same. In the latter circumstance if you did not qualify for contribution based Jobseeker's Allowance you may, subject to your personal/family circumstances and means, qualify for means-tested Jobseeker's Allowance. [Last updated 2008]
Q: I live in Northern Ireland and started work in the south several months ago. I have been ill for the past few weeks and have no income. Do I claim sick pay from the North or the South?
A: Generally under EU social security rules it is the country in which a person was last insurably employed who will be responsible for the payment of a contribution based sickness benefit. This is Illness Benefit from the Department of Social and Family Affairs in the Republic, see www.welfare.ie, FOI, Illness Benefit. You must still satisfy the contribution conditions for that benefit but you can include previous stamps or national insurance contributions made in the north. You would not satisfy the Irish contribution conditions on the most recent Irish stamps (PRSI) alone as for a claim in 2008 there must generally have been sufficient stamps in 2006. EU rules indicate that you should claim in N. Ireland on form SC1 which you can get from your local Jobs and Benefits office. It would however be quicker if you claim on the Irish form DBOB1 which you can get from the Department in the Republic, phone +353 (0)1 679 7777. As previously indicated whether you receive a payment will depend on your contributions record north and south. If you do not qualify for this and remain unfit to work I would suggest you contact your local Citizens Advice Bureaux in Northern Ireland for a benefit check to see if there is anything else you may be entitled to. [Last updated 2008]
Q: My husband has worked in Northern Ireland for the past 4 years and we both live in Ireland, I also work in Ireland. Can I claim my husband's Irish tax free allowance, or can he claim credits now that we are married. With the sterling to euro rate so poor at the moment we are having to consider wheather we can afford for him to earn sterling or if he needs to find a job in Ireland so any extra income/credits we are entitled to would be a great help.
A: You can opt for the married couple's tax credit in Irelandwhich will further reduce the Irish income tax you pay through your wage. However this may lead to you having an additional Irish income tax liability as a couple as a result of the operation of what Irish Revenue refer to as 'trans-border worker's relief'.
You can see how this works by looking at pages 12-15 of Irish Revenue's booklet 'Res 1', see www.revenue.ie/leaflets/res1
. [Last updated 2008]
Q: I live in Northern Ireland (NI) and am soon to start a job in Ireland but shall continue to live in NI. How does me working in Ireland affect my state pension (in NI) in years to come?
A: Generally if you are employed in Ireland you will pay income tax and social insurance, PRSI, there. Your PRSI contributions do not of course count toward a NI pension.
However they may entitle you to an Irish State Pension if you work for sufficiently long in Ireland and/or enhance the rate of a NI state pension when combined with years of national insurance under EU rules.
For the contribution rules relating to an Irish State Pension (payable at 65 or 66 years of age for both men and women), see www.welfare.ie.
You may also be able to pay voluntary national insurance contributions to protect your entitlement to a NI state pension. You can see if this would be worthwhile by in the future getting a Pension Forecast. NI contributors who reach pension age (because of your age this will be 65 for you) on or after 06 April 2010 will only need to have paid or been credited with sufficient contributions over 30 years to establish entitlement to a full state pension. [Last updated 2008]
Q: I am a frontier worker living in Northern Ireland (NI) and commuting to work in Ireland. Do I still need to pay National Insurance contributions in NI?
A: You do not have to pay voluntary national insurance contributions but you may wish to do so to protect your entitlement to a State Pension in NI. You can do so by contacting:
HM Revenue and Customs
National Insurance Contributions Office
Benton Park View
Newcastle upon Tyne
NE98 1ZZ
Tel: 0845 302 1479
Website: www.hmrc.gov.uk/nic
Class 3 voluntary contributions are paid at a flat weekly rate currently £7.80 per week rising to £8.10 per week from 06 April 08, they can be paid in the following ways:
- by direct debit monthly in arrears; or
- quarterly in arrears. The person paying will be sent a bill at the end of each 13 week period and must make the payment within 28 days; or
- by cash or cheque at the end of the tax year by taking or sending the payment to the nearest HM Revenue & Customs National Insurance Contributions Office. The payment should be accompanied by a note with the payer's name, address and national insurance number.
The number of years for which a person needs to have paid national insurance contributions in order to get a full basic UK state pension is to be reduced to 30 qualifying years for both men and women reaching state pension age on or after 6 April 2010.
This may affect a client's decision to pay late contributions to ensure a complete contribution record. As a result you may wish to get a pension forecast before paying voluntary contributions. You can do so by contacting:
Northern Ireland Pensions Branch
Castle Buildings
Stormont
Belfast BT4 3SJ
Tel: 028 9052 0500
Provided you work long enough in Ireland and pay sufficient PRSI you will be entitled to an Irish State Pension and under EU rules there is scope for proportionate social security pensions if a person has worked in more than one EU member state. [Last updated 2008]
Q: I am a Northern Ireland (NI) resident working in Ireland and would like to know if I am subject to the health contribution and Employee PRSI in Ireland. Do I still need to pay National Insurance in NI?
A: If you are an employee in Ireland you are subject to PRSI in the normal way including the health contribution even though you may be unlikely to access health services in Ireland because of cost issues.
With some exceptions National Insurance is not generally payable on earnings arising outside NI.
You may be entitled to pay voluntary National Insurance contributions to protect your UK state pension entitlement. [Last updated 2008]
Q. I live in Northern Ireland but have been employed in Ireland for about a year; previously I have only ever worked in Northern Ireland. I am concerned that I may not be entitled to contributory sickness or retirement benefits as I am not paying National Insurance in Northern Ireland, can you provide clarification on these issues?
A: Under EU regulations it is generally the case that the country in which you last paid social insurance is liable to consider your entitlement to a sickness benefit. Therefore, if you become sick whilst working in Ireland, you may qualify for Illness Benefit or other sickness benefits administered by the Department of Social and Family Affairs (DSFA) in Ireland.
You can combine National Insurance contributions from your previous employment in Northern Ireland with PRSI (Pay-Related social Insurance) from your employment in Ireland to allow you to meet the necessary contribution conditions for these DSFA benefits. [Last updated 2008]
Q: I live in Northern Ireland and work in Ireland. My employer has advised me that I am not entitled to sick pay if I take time of work sick, is this correct?
A: There is no statutory obligation on an employer to pay an employee sick pay in the event of absence from work due to illness in Ireland. If you become sick whilst working in Ireland, you may qualify for Illness Benefit or other sickness benefits administered by the Department of Social and Family Affairs (DSFA).
You can combine National Insurance contributions from your previous employment in Northern Ireland with PRSI (Pay-Related social Insurance) from your employment in Ireland to allow you to meet the necessary contribution conditions for these DSFA benefits. [Last updated 2008]
Q: I currently live in Ireland and receive Job Seekers Benefit. I am moving to Northern Ireland in order to look for work. Can I continue to receive this benefit when I move to Northern Ireland and are there any steps I need to take in order to do so?
A: You can continue to receive Jobseekers Benefit for up to 3 months in Northern Ireland under EU regulations. The department in Ireland will issue you with form E303 which you can present to the Social Security Agency in Northern Ireland who will then take over payment of your benefit. [Last updated 2008]
Q: I live in Northern Ireland but am employed as a PAYE worker in Ireland. I have been told that I am exempt from the Health Contribution of PRSI (Pay-Related Social Insurance). Is this correct?
A: No, you are not exempt from the Health Contribution unless your income is at a sufficiently low level that you would be able to qualify for a Medical Card in Ireland and be exempt from the Health Contribution as the holder of the Medical Card. [Last updated 2008]
Q:
I live in Northern Ireland (NI) and I am considering moving with my husband and child to live in Donegal. My husband will continue to work in NI. At present I am receiving Incapacity Benefit in NI and was wondering if I would loose this payment along with our Child Benefit and Child Tax Credit if we move to Ireland? Also can we continue to access NHS services?
A: Incapacity Benefit is an exportable benefit under EU legislation therefore you can continue to receive it if you move to Ireland. As your husband will continue to work in Northern Ireland the UK is the “competent state” for the payment of family benefits therefore you should continue to receive your Child Benefit and Child Tax Credit.
In terms of healthcare, whilst your husband remains employed in NI he is entitled to access the NHS in NI on a routine basis; this right does not extend to you. Your husband’s frontier worker status will mean your child should also qualify. However you are also entitled to apply for an Irish medical card which would entitle the family to free public healthcare in Ireland. [Last updated 2008]
Q: I currently work and live in Northern Ireland, however am planning on moving to the Republic of Ireland next month as I am getting married. I will continue to work in Northern Ireland and am wondering if I need to close my savings accounts, credit cards etc. once I move to the Republic?
A: Generally you should be able to retain these but I would suggest you contact each individual provider, i.e. bank/building society/credit card company in case there are any implications in terms of you moving out of the UK. [Last updated 2008]
Q: I have been living in Ireland and commuting to work in Northern Ireland (NI). I have recently been made redundant. Am I entitled to receive any unemployment benefits in NI?
A: Under EU social security rules you are regarded as a 'frontier worker'. As you have been made redundant, your country of residence is 'competent' to pay you a social insurance based unemployment payment under EU rules relating to frontier workers.
You should therefore make a claim for Jobseekers Benefit in your local social welfare office in Ireland. You must still satisfy the contribution conditions – which for a claim in 2008 means that you must have a sufficient social insurance paid in 2006.
This can be National Insurance, PRSI or a combination of both. If you do not qualify for Jobseekers Benefit you may, subject to a means test, qualify for Jobseekers Allowance from social welfare in Ireland instead. [Last updated 2008]
© Northern Ireland Association of Citizens Advice Bureaux (NIACAB) 2008
