Lawmaker Urged Fix for Cross-Border Tax Issues
Pádraig Delargy called for government action to resolve double taxation hurdles for cross-border employees.
Updated on Oct. 7, 2026 in Remote Work
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Pádraig Delargy has raised urgent concerns in the Stormont Assembly regarding double taxation and tax compliance challenges facing cross-border workers. These regulatory complications have prompted companies to restrict or halt hiring across borders, impacting labor mobility between Northern Ireland and Ireland.
Why it matters
Current hybrid work models create significant payroll and tax compliance risks for businesses, forcing them to limit cross-border recruitment. Addressing these barriers is essential to sustain the economic integration of regions like Derry, Donegal, Newry, and Louth.
An Economic and Social Research Institute report notes 19,000 people commute across the border for work. One Donegal technology firm previously hired 60 to 70 cross-border staff before ceasing such recruitment due to compliance complexity.
The players
Pádraig Delargy
He is an assembly member who advocated for government intervention to fix tax policies affecting cross-border commuters.
Stormont Assembly
This is the devolved legislature of Northern Ireland where discussions regarding regional economic policy and labor issues occur.
Economic and Social Research Institute
It is a research organization that provides data on social and economic conditions including labor movement trends.
The details
Companies are struggling with the administrative burden of dual payroll and tax obligations associated with hybrid work arrangements. Consequently, one major technology firm with 1,000 employees has restricted roles to fully in-person or remote models to avoid potential audit risks.
Timeline
March 2026: The UK-Ireland Summit took place in Cork.
Summer 2026: The IBEC-CBI Joint Business Council report was published.
2026: Governments expect to reach a decision on cross-border working.
Market Landscape
The call for tax reform highlights an ongoing push to integrate labor markets between Northern Ireland and Ireland following the 2026 UK-Ireland Summit. Legislative changes are necessary to prevent firms from fragmenting their operations in response to modern remote work complexities.
Workers currently facing tax uncertainty may see regulatory relief if governments finalize a new bilateral agreement this year. Until then, employees may find limited opportunities for cross-border hybrid roles as companies continue to minimize their own tax compliance exposure.
The takeaway
The intersection of modern remote work and outdated tax codes requires proactive diplomatic intervention to keep labor markets open. Employers and employees alike should monitor upcoming bilateral government decisions to understand potential changes to tax liabilities.
Further reading
Learn more about the evolving policies affecting international labor mobility in our Remote Work section.
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Should the government simplify tax laws to better support workers living in border regions?
