Non domicile - Working Abroad Tax?

Tugela

Im sorry Mohmood I am not sure what you mean. Basically what I want to know is.. will he get a refund of his tax paid in the UK as he has only been here for 2 months out of 2 years.
Thanks

Cook_County

Tugela wrote: »

Im sorry Mohmood I am not sure what you mean. Basically what I want to know is.. will he get a refund of his tax paid in the UK as he has only been here for 2 months out of 2 years.
Thanks

Not sure what you mean. Have you spoken to a Romanian lawyer yet? The employer has evaded Romanian corporate tax and presumably all local withholding taxes and rules. Will you husband be jailed for conspiricy? Evading tax is a criminal act in many jurisdications. You urgently need specialist tax lawyers advice - not an open forum.

Mahmood_Reza

Tugela wrote: »

Im sorry Mohmood I am not sure what you mean. Basically what I want to know is.. will he get a refund of his tax paid in the UK as he has only been here for 2 months out of 2 years.
Thanks

If I have understood corectly, your husband works full time overseas (I assume no duties performed in the UK), is non UK resident but pays UK tax on that income. If that is correct then (a) he should not be paying UK tax on overseas employment income; (b) he should be able to claim any UK tax back; (c) double tax relief exists to prevent income/gains being taxed twice. Relief is normally given via a treaty agreemnt (100+ exist, Romaia is a signatory), or by a tax credit.
Regarding UK domcile (more relevant to Inheritance Tax), you cannot just claim it, and it is not based on how many days you spend in the UK. Individuals who have emigrated & lived overseas for many years may still be UK domicled.

Tugela

Mahmood_Reza wrote: »

If I have understood corectly, your husband works full time overseas (I assume no duties performed in the UK), is non UK resident but pays UK tax on that income. If that is correct then (a) he should not be paying UK tax on overseas employment income; (b) he should be able to claim any UK tax back; (c) double tax relief exists to prevent income/gains being taxed twice. Relief is normally given via a treaty agreemnt (100+ exist, Romaia is a signatory), or by a tax credit.
Regarding UK domcile (more relevant to Inheritance Tax), you cannot just claim it, and it is not based on how many days you spend in the UK. Individuals who have emigrated & lived overseas for many years may still be UK domicled.

Ok he is employed by a UK company which performs duties outside of the UK
We are residents of the UK but hold austrian passports
He was told by the tax office to fill in the P85 which allegedly informs them that you are no longer working in the UK........ they lost these forms numerous times, we then refiled them, they then asked him to confirm he is working away 11 months of the year which he did, the last contact with the tax office was a letter to say that we will hear from them byt the 28 July (its now the end of August)
When he took this job he was told that after 12 months of working away he would get an NT code from the tax office - this has never happened.
Thanks for the help

Cook_County

Tugela wrote: »

Ok he is employed by a UK company which performs duties outside of the UK
We are residents of the UK but hold austrian passports
He was told by the tax office to fill in the P85 which allegedly informs them that you are no longer working in the UK........ they lost these forms numerous times, we then refiled them, they then asked him to confirm he is working away 11 months of the year which he did, the last contact with the tax office was a letter to say that we will hear from them byt the 28 July (its now the end of August)
When he took this job he was told that after 12 months of working away he would get an NT code from the tax office - this has never happened.
Thanks for the help

Does he claim the remittance basis on his UK tax returns? Does he perform any duties in the UK? Why do you care about UK tax if you are evading Romanian tax - or you planning on paying no tax anywhere?

Mahmood_Reza

look at the contact section of the tax office site and it will give you details of the relevant number and dept to call if a complaint. Contact them, this should speed things up - note who you speak to .

Cook_County

Mahmood_Reza wrote: »

look at the contact section of the tax office site and it will give you details of the relevant number and dept to call if a complaint. Contact them, this should speed things up - note who you speak to .

Mahmood - you are totally not getting the point. This is an Austrian citizen working (probably full-time) in Romania. The employer is evading Romanian corporate tax, withholding rules for salary and social taxes and doubtless local employment law. Tax evasion is a criminal offence - so the chap concerned could likely be sent to jail for conspiracy. HMRC will doubtless tell the Romanian tax people ... but in the meantime the individual needs to see a Romanian tax lawyer...preferably at 9:00 am on Monday morning.

Tugela

Cook_County wrote: »

Does he claim the remittance basis on his UK tax returns? Does he perform any duties in the UK? Why do you care about UK tax if you are evading Romanian tax - or you planning on paying no tax anywhere?

Errm.... I am sorry but i dont think you get the point!! He is paying UK tax (£1500+ per month) but he does not reside in the UK and now the Romanian Government is claiming tax from him which in my mind is correct as he is LIVING there and not in the uk. So no........ there is no plan to evade tax anywhere at all
Gosh............... I do think you were a bit hasty in your reply - I would not be asking something on this site if I knew what I was doing - I am asking for help not to be presumed upon?:(

Tugela

Cook_County wrote: »

Mahmood - you are totally not getting the point. This is an Austrian citizen working (probably full-time) in Romania. The employer is evading Romanian corporate tax, withholding rules for salary and social taxes and doubtless local employment law. Tax evasion is a criminal offence - so the chap concerned could likely be sent to jail for conspiracy. HMRC will doubtless tell the Romanian tax people ... but in the meantime the individual needs to see a Romanian tax lawyer...preferably at 9:00 am on Monday morning.

This is what has happened - he does have all the correct paperwork for Romania and NOW his employer has got a tax consultant in Romania to deal with it and my simple question is........ why is he paying tax TWICE - or am i just stupid?

John_Pierpoint

Is this really true?
With a huge number of East Europeans working in each other's countries and here in the UK, are they really managing to keep tabs on what is happening.
I personally know one such migrant who has managed to work (manual agency type work) in 4 countries in the last 12 months.
Psst one was Austria.
His UK pay slips suggest that HMRC only knows about his UK earnings.
Which authority if any has or should have the overall picture?

I suppose it is only since WW2 that a manual worker would have paid any income tax to anyone?