I propose to take Questions Nos. 393 and 394 together.
The tax treatment associated with cross-border working has been subject to ongoing discussions in recent years, particularly given the increase in remote working as a result of the Covid-19 pandemic. However, cross-border working gives rise to complex issues involving shared taxing rights between different jurisdictions.
It should be noted that workers who reside in Northern Ireland and work in the State are not precluded from working from home. The availability of remote working is primarily a matter between the employer and the employee. An employer may allow an employee to work remotely in Northern Ireland, however, such arrangements may result in implications for the employer from a UK tax perspective. As such, any potential implications that may arise from such arrangements are outside the scope of my direct remit and that of my Department.
As cross-border working and the availability of remote working options have potential tax implications not only on an island of Ireland basis, but also internationally, it is important that the wide range of policy considerations that arise are fully understood and considered.
My Department is continuing to engage on this matter, which includes the below steps:
1. Obtain Better Data
There was a general acceptance that data in relation to the nature and extent of cross-border working could be improved. In this regard, my Department commissioned the ESRI to undertake a research project in this area. In June 2024, the ESRI published its report entitled ‘A Study of Cross-Border Working on the Island of Ireland’. This paper estimates the number of cross-border workers, as well as providing an overview of the profile and characteristics of cross-border workers.
2. Minimise Administrative Burden
Revenue has looked at ways to minimise and simplify the administrative burden insofar as possible. Revenue has published guidance in this regard which will be of assistance to employers and employees.
3. International Discussions
My Department is actively engaging in international discussions on the policy implications of cross-border working, including at both EU and OECD level. The OECD has commenced its work on global mobility and my officials are continuing to engage on this matter, and also remain open to engaging bilaterally with other jurisdictions as appropriate to the circumstance.
My Department has recently initiated engagement with HM Treasury and HMRC to facilitate an exchange of views and sharing of experiences on this issue. This engagement will continue into 2026.
Regarding the Labour Employer Economic Forum (LEEF), a Plenary meeting of the LEEF on 4 April last discussed the potential to strengthen the all-island labour market for the benefit of employers and workers on the entire island. It was agreed that LEEF would put a sustained focus on this issue. The LEEF Shared Island working group, which is chaired by the Department of the Taoiseach, is consulting with a number of Government Departments, including my Department.
