Non domicile - Working Abroad Tax?

Mahmood_Reza

My comment regarding complaining was in respect of OPs frustration with the tax office, perhaps in hindsight I should have linked it to that quote?
Based on my understanding of the situation, OPs husband earnings for full time work abroad will not be subject to UK income tax, provided that he undertakes only incidental duties in the UK and that he spends less than 91 days a year on average in the UK, UK tax is refundable – apologies if you think I have missed the point.
Can anyone tell me what the angry icon on my posting of 27.08.10 at 6.05 pm means and represents – is it something that I have put on? I am still learning the finer points of forum involvement. Many thanks

Tugela

Ok so now i have a bit more info to go on.... basically this is what has happened up to now
His tax forms have been submitted to the uk and he is due a refund of +£25 000................ but this is to be made payable to the company he works for. Is this not his money? There is a paragraph in his contract which states :
"Salary will be paid and taxes deducted via the UK Payroll. Income tax liabilities arising in different countries as a result of your activities there will be managed by the company on your behaf using an equalization process to ensure that your after-tax earnings are maintained at the leval that would be received if you were UK resident, whatever the differing rates of local taxation"
I so need help on this......... surely it is his money and not the companies. Yes they can take back whatever they had to pay to the Romanian Government on his behalf but what about the remainder of the refund - who does it belong to?
Your help and comments would be appreciated. Thanks

jennifernil

I think it means that his nett wage will be whatever it would have been had he been earning it here.

So if he has been taxed/paid NI as usual in UK, and his employer has looked after any taxes etc due elsewhere, then if HMRC are refunding tax, this money is due to the employer.

This is advantageous if the country where you work has higher rates of tax etc than UK.

Cook_County

Did he pay hypo tax? Does he get a housing contribution or pay a home country housing contribution? Is he equalized on outside income? Do you understand the equalization policy yet? Is he equalized to the UK or Austria? How is the home country tax calculated?

Have you indeed seen the full equalization policy? Have you seen the tax equalization calculations or just the tax returns? (The tax returns are of course irrelevant as they are not his responsibilty.)

Tugela

Sorry Cook - no idea what you talking about. All i know is what the accountants who are dealing with this sent him via email and he forwarded it to me. Cook - him being an austrian really has no bearing on this,. He worked in the UK for 10 plus years before getting this job so i dont see how the austrian part comes into it at all.
Jennifer - what i am actually asking is........ his tax refund as calculated by tghe accountants is £25000 - i know his employer paid £900 to the romanian government when he was working there so yes his employer is entitled to the £900 but what happens to the difference?
Thanks

Cook_County

This is nothing to do with tax. He needs to speak with his employers and get them to explain their policy to him. The tax and tax refunds all belong to the employers unless the policy says something else.

jennifernil

Yes, I would agree. He is being paid so that he is no worse off than if he worked in UK, that is what these schemes are all about.

Surely the tax due in Romania on what sounds like pretty high earnings must be more than £900?