How to get Inland Revenue to stop harassing me?

arunadasi

I am a German citizen, so is my husband. I have been resident here since 2001, he since 2006.

We have always paid taxes in Germany. His is paid at source before he gets his pension. I am self-employed and we are assessed as a couple in Germany.
My taxes in Germany are up to date.

I've never paid UK taxes, but I do fill in self-assessment forms -- I actually go down to my local tax office and they do this for me -- and inform them of the taxes I pay in Germany. And yet every couple of months for the last few years I am getting a letter about "late payment of tax" which now amounts to £6237. With every letter it's a higher amount. I always reply to this letter telling them of my situation. I've taken the letter to my local tax office, and they have made some phone calls on my behalf. I've made phone calls, I;ve received phone cals from Inland Revenue, and yet the letters keep coming.

Today I got a letter for them demanding a surcharge of £1153 for "late payment of taxes". The letter says I can appeal, but to pay anyway in case I lose the appeal.
I have just composed a letter of appeal, quoting previous letters I have sent them, but I fear that they will take further action against me.

What is there left to do? How can I get these apparently automatic letters to stop?

dzug1

If you are resident here you are liable to UK income tax on your income from all sources. Citizenship is irrelevant.

There is probably a double taxation agreement with Germany which means that tax in one country can be offset at least in part against tax due in the other.

So there's a possibility that you DO owe UK tax - assuming you filled in the self-assessment form correctly and completely and that they processed it correctly.

Caroline73_2

The tax office don't fill in your SA for you - we'd all be down there to save ourselves the effort.

If you are self employed in the UK then you should pay UK taxes.

arunadasi

There is indeed a double taxation agreement. My accountant (in Germany) tells me that the tax paid there will be offset against anything I'd be liable for inthe UK.

The problem I have is that never once have they actually taken note of the fact that I have paid in Germany, and sent me any kind of statement or tax bill I could react to reasonably. Just: "You have not paid your taxes so pay up." This new surcharge justtakes the cake. It's as if they just ignore all evidence that I have paid in Germany.

It's unlikely that my self assessment forms were wrongly filled out as they were done by my local tax office. So it can only be that they have not processed it correctly, and seem to be refusing to do so.

arunadasi

Caroline73 wrote: »

The tax office don't fill in your SA for you - we'd all be down there to save ourselves the effort.

If you are self employed in the UK then you should pay UK taxes.

My income (at the moment) comes almost entirely from abroad, ie Spain and France. I have to fill in double-taxation forms with those countries.

Sorry, but my tax office DID do it for me the last two years, because of my particular complicated situation! There's a very nice man there who helps me with it. This year I did it by myself, online.

Tarasam

arunadasi wrote: »

The problem I have is that never once have they actually taken note of the fact that I have paid in Germany, and sent me any kind of statement or tax bill I could react to reasonably. Just: "You have not paid your taxes so pay up." This new surcharge justtakes the cake. It's as if they just ignore all evidence that I have paid in Germany.

Does your statement actually say this???? I would suggest not. If you're not receiving any statements or calculations then you need to speak to HMRC asap, if an advisor in your local HMRC office IS completing your return for you then i must advise they're not supposed to, its SELF assessment and we're only there to HELP you to complete. Is the advisor helping you a Technical Advisor, as an ordinary advisor is not trained in foreign income and double taxation.

This will not go away soon, you need to get it sorted asap.

trevormax

As a UK resident, you are liable to tax at the UK rates. If the tax rates in Germany are lower than in the UK then you will need to pay the difference.

fengirl_2

And as a UK resident, your first duty is to pay UK tax - any other taxes come second.

arunadasi

trevormax wrote: »

As a UK resident, you are liable to tax at the UK rates. If the tax rates in Germany are lower than in the UK then you will need to pay the difference.

Actually, I think they are higher!

arunadasi

kellyshay wrote: »

Does your statement actually say this???? I would suggest not. If you're not receiving any statements or calculations then you need to speak to HMRC asap, if an advisor in your local HMRC office IS completing your return for you then i must advise they're not supposed to, its SELF assessment and we're only there to HELP you to complete. Is the advisor helping you a Technical Advisor, as an ordinary advisor is not trained in foreign income and double taxation.

This will not go away soon, you need to get it sorted asap.

No, nothing I have ever received shows any calculation whatsoever. They just say, you haven't paid, this is our estimate, pay up, .
I have approached them time and again in writing and on the phone and never get an adequate reply.

arunadasi

fengirl wrote: »

And as a UK resident, your first duty is to pay UK tax - any other taxes come second.

All I want them to do is acknowledge my situation and my tax payments in Germany, and say something about that, and then we can talk! If they work out that I am liable in the UK not Germany then I expect they can demand refunds from Germany. I have no idea.