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?
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.