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Question:
I am resident in Northern Ireland but I am employed in Dublin and commute on a daily basis. My employer deducts PAYE, PRSI and USC from my wages. As I am resident in Northern Ireland, I have to submit a self-assessment income tax return to the HMRC. Can the USC be included as tax when completing a self-assessment tax return to HMRC?
Answer:
Yes, USC is considered to be income tax for the purposes of the Double Taxation Agreement between Ireland and the UK. The individual should complete and submit a self-assessment tax return to the HMRC to include any foreign income (e.g. the salary arising from the Irish employment) and claim a credit for the income tax, including USC, paid in Ireland.