Press release - 14th November 2011
Universal Social Charge and Cross-border workers
As of January 2011 the Universal Social Charge replaced the Health and Income Levies in the Republic of Ireland. Conflicting information surrounding the Charge and its impact on Cross-border workers has been identified by the Border People project which has experienced a surge of enquiries from workers wishing to confirm whether they are liable to pay the USC.
The following information should help clarify the situation:
Living North, Working South
Cross-border workers living in Northern Ireland, as holders of Northern Ireland Medical cards, will have their rate of Universal Social Charge capped at 4%. [UPDATE! As of 1st January 2012 the 4% cap no longer applies. ]
Living South, Working North
Cross-border workers living in the South are obliged to file a tax return with Revenue each year declaring their Northern Ireland income. Transborder Workers Relief will ensure they have no tax to pay in the South, provided their only income is sourced in Northern Ireland. Where Transborder Relief applies, the Universal Social Charge is not charged on their foreign (Northern Ireland) employment income.
The Border People project aims to provide information to people crossing the border to live, work, retire or study. It is managed by the Centre for Cross Border Studies in partnership with the North South Ministerial Council Joint Secretariat and is part financed by the European Union’s European Regional Development Fund through the INTERREG IVA Cross-border Programme managed by the Special EU Programmes Body.
For further information please visit www.borderpeople.info
Notes to Editor:
- The Special EU Programmes Body is a North/South Implementation Body sponsored by the Department of Finance and Personnel in Northern Ireland and the Department of Finance in Ireland. It is responsible for managing two EU structural funds Programmes PEACE III and INTERREG IV designed to enhance cross-border co-operation, promote reconciliation and create a more peaceful and prosperous society. The Programmes operate within a clearly defined area including Northern Ireland, the Border Region of Ireland and Western Scotland.
- The INTERREG IVA 2007-2013 Programme, funded though the European Regional Development Fund, is worth €256 million and aims to address the economic and social problems which result from the existence of borders. It has two distinct priority measures to create co-operation for a more prosperous and sustainable cross-border region.d susta
- For more information on the SEUPB please visit www.seupb.eu
