New procedures concerning workers from the Republic who earn and pay tax in Northern Ireland are being dealt with "as a matter of urgency", the Treasury in London has told Foyle MP, Mr John Hume.
The former SDLP leader had written to the British Chancellor of the Exchequer, Mr Gordon Brown, concerning the problems of those resident in Border counties who work in the North. He expressed concern at the apparent slow changeover to a new system of relief called tax credits.
"My office has been contacted by a number of people working in the North and living in the Republic of Ireland who have not received their new tax credits. I wrote to the British Chancellor of the Exchequer, Gordon Brown, arguing that these cross-border workers have the right to claim these benefits and, given the financial strain on working people, the matter needs to be addressed urgently," Mr Hume said.
The Treasury has replied to Mr Hume's concerns, acknowledging delays in settling tax-credit claims, and admitting that sorting out tax liabilities for workers who live and work in more than one EU member-state can be "complex".
Ms Dawn Primarolo, the Treasury minister responsible, replied to Mr Hume: "The Inland Revenue has told me that the process for dealing with these cross-border cases is being finalised as a matter of urgency."