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.
The second annual UK Ireland summit held in Cork on 12 March last, acknowledged the work on this cross border issue. The joint statement of the Taoiseach and the Prime Minister welcomed agreement to engage on reaching a decision in principle this year on a bilateral Ireland-UK approach to address concerns arising from hybrid cross-border working.
My Department is continuing to engage on this matter, which includes the following steps:
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.
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.
International Discussions - My Department is 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 commenced engagement with the UK Treasury and His Majesty’s Revenue and Customs (HMRC) to facilitate an exchange of views and experiences in relation to cross-border tax issues. This engagement has included an initial meeting between the Department of Finance and the UK Treasury in August 2025, followed by a further meeting in October 2025 which was attended by officials from HMRC and Revenue. My Department and the UK Treasury have agreed to continue discussions on these matters in 2026. Revenue will provide support to the Department in its future deliberations with the UK Treasury and HMRC on the issue.
