UK vs Ireland payroll: PAYE / NI vs PAYE / USC / PRSI
Last updated: 5 May 2026
TL;DR
UK and Irish payroll look superficially similar - both call the income-tax mechanism PAYE - but they diverge sharply once you look past the label. UK payroll uses a single tax code, NI bands and devolved Scottish rates. Ireland uses tax credits, rate bands, a Revenue Payroll Notification (RPN), USC on most income and PRSI alongside it.
In one sentence
The UK runs PAYE and NI under HMRC tax codes; Ireland runs PAYE, USC and PRSI under Revenue's RPN system, with credits and bands instead of a code-based allowance.
What is UK payroll?
The UK system is built around a tax code (e.g. 1257L) that encodes a personal allowance for income-tax purposes. Each pay period, the employer applies the code, calculates PAYE income tax across three bands (basic 20%, higher 40%, additional 45% rUK; six bands in Scotland), deducts National Insurance Class 1 (8% / 2% for 2026/27) and remits both to HMRC. Pension and student loan are calculated alongside according to scheme and plan rules. The annual document is the P60; year-end refunds and underpayments flow through the Personal Tax Account or via P800.
What is Irish payroll?
The Irish system uses Revenue's real-time payroll architecture introduced in 2019. Each employee has a Revenue Payroll Notification (RPN) - Revenue's instruction to the employer - covering income tax credits, the standard rate band, USC rates and bands, and PRSI status. Income tax operates on a credit system (the personal tax credit and PAYE credit reduce the calculated tax, rather than excluding earnings from being taxed). USC, the Universal Social Charge, applies to most income on its own bands - typically a 0.5% / 2% / 4% / 8% structure for 2026 subject to Budget confirmation - with reduced rates for medical-card holders and over-70s. PRSI Class A1 applies to most employees at 4.1% with a tapered credit. The annual document is the End of Year Statement (Statement of Liability) rather than a P60.
The PayslipIQ Ireland surface applies the Irish 2026 thresholds, reads RPN-style codes, and surfaces USC and PRSI calculations alongside PAYE.
Side-by-side comparison
| Dimension | UK | Ireland |
|---|---|---|
| Tax authority | HMRC | Revenue |
| Income-tax mechanism | Allowance via tax code | Tax credits + rate bands |
| Employer instruction | Tax code (e.g. 1257L) | RPN (Revenue Payroll Notification) |
| Personal allowance / credit (2026) | £12,570 personal allowance | Personal tax credit + PAYE credit (€2,000-ish each, subject to Budget) |
| Standard income-tax bands | 20% / 40% / 45% rUK; 6 bands Scotland | 20% standard rate + 40% higher rate |
| Social insurance | National Insurance (Class 1, 8% / 2%) | PRSI Class A1 (~4.1% on most income) |
| Additional income levy | None separate from income tax | Universal Social Charge (USC) on most income |
| Pension auto-enrolment | Established (TPR-regulated) | Phased introduction (My Future Fund / similar) |
| Annual document | P60 (year-end) | End of Year Statement |
| Mid-job-change document | P45 | RPN refresh through Revenue ROS |
| Real-time reporting | Yes (RTI) | Yes (PAYE Modernisation since 2019) |
| Reconciliation | P800 / PTA | Statement of Liability via myAccount |
Got an Irish payslip? Run it through the PayslipIQ Ireland check. Got a UK one? Run a free UK check.
Where the two systems behave alike
- Both call the income-tax mechanism "PAYE" and operate it on every pay run.
- Both have moved to real-time reporting (UK RTI in 2013; Irish PAYE Modernisation in 2019).
- Both reconcile annually outside the payslip flow.
- Both expect employees to keep their address and circumstances current to avoid emergency basis treatment.
Where the two systems differ most
The biggest day-one difference for someone moving across is the credit vs allowance mental model. In the UK, your personal allowance excludes the first £12,570 from being taxed. In Ireland, all income is taxed but the calculated tax is reduced by your credits. The economic effect for most earners is broadly similar, but the payslip arithmetic looks different.
The second is the USC layer. Ireland deducts USC on most income on top of PAYE; the UK has no equivalent line. Practically, an Irish payslip has three deduction rows where a UK payslip has two. Our Irish glossary walks through every line.
The third is PRSI vs NI. UK NI uses bands; Irish PRSI is broadly a flat rate with a tapered credit at lower earnings, and confers different state-pension contribution records. Cross-border workers should review the bilateral social-security agreement before assuming records are interchangeable.
Pros and cons
UK
Pros: simple at-source allowance through the tax code; long-standing infrastructure; mature pension auto-enrolment. Cons: code-driven design can mask issues until year-end; multiple income sources frequently produce W1/M1 emergencies; Scotland adds bands without clear payslip signalling beyond the S prefix.
Ireland
Pros: RPN delivers near-real-time accuracy when employee records are current; USC and PRSI handled separately means the maths is transparent on the payslip. Cons: three deduction lines feel busier; emergency-basis on RPN can bite new starters until Revenue updates the record; pension auto-enrolment is still bedding in.
Frequently asked questions
If I move from the UK to Ireland, will my UK tax code apply?
No. Each country runs its own payroll system. Once you become an Irish tax resident your employer operates Irish PAYE under a Revenue Payroll Notification (RPN), and HMRC stops issuing a UK code for that employment.
What replaces the UK tax code in Ireland?
An RPN - Revenue Payroll Notification - issued by Irish Revenue to your employer. It contains your tax credits, rate-band split and USC status, and is the Irish equivalent of HMRC's coding instruction.
Is National Insurance the same as PRSI?
Conceptually similar but mechanically different. NI uses banded percentages on weekly / monthly pay; PRSI is broadly a flat 4.1% on most employees with a tapered credit for lower earnings, alongside the separate USC.
Where can I check an Irish payslip?
Use the PayslipIQ Irish surface at payslipiq.co.uk/ie. It applies Irish PAYE, USC and PRSI thresholds and reads payslips formatted in the Irish style.
Related pages
- Free UK payslip check
- PayslipIQ Ireland
- Free Irish payslip check
- Irish payroll glossary
- Guide: UK tax codes explained
- RPN check (Ireland)
- Our calculation methodology
Educational content. UK figures from HMRC for 2026/27; Irish figures subject to confirmation in the latest Budget published on gov.ie. Not regulated tax advice on either side of the Irish Sea.
Pick the right surface for your payslip - UK or Ireland - and run a free check.