Earned in America, taxable in UK??? So confused!

robb2002

I don't know where to begin. I went on the Camp America program this year and had a brilliant time. I earned $1250 dollars at the first camp and $600 at the second camp so overall this equates to roughly £1000 for 10 weeks. I went back to my old job, but noticed that my previous tax code before I left for America had changed to basic rate (emergency tax) which meant that I was being charged £10 on every £45 earned. Over 5 weeks I have clocked up £65 tax and I really can't afford that.

I went into the Inland Revenue and told them that I was being charged too much tax. However because my old job wasn't giving me enough hours (or the hours were un-balanced with college) I decided to get another job to run alongside it. Now I only worked in my 'new' job for a week (3 days) and left so I don't know what impact that would have.

My old job did not give me a P45 when I left and then I returned to them so I had to fill in a P46 last week. The Inland Revenue have asked me to declare all of the money I earned in America, but i don't understand why??? Nobody who has done this program, I even spoke to head office about it has had to do this before, so why me?

The Inland Revenue said that I have to fill in a date of leaving UK and then a date of re-entry. I have paid tax in America so how would that work over here? Would I be taxed again? I heard something about tax credit but I don't understand it. I'm just in shock about thinking that I have done something wrong.
I am now on a new tax code but still need to get all of the documentation from America (which I don't have) and get the pay from my new (but left job) paid to me, it's just such a mess. I really am so confused.
Has anybody else had to do this before?
Thanks
Rob

robb2002

Can anybody help???

prudryden

Under the US/UK tax treaty, you don't pay tax twice. On your UK tax return, list the foreign tax that was deducted. This will be applied as a tax credit to your UK tax. You don't need show your proof unless they ask for it. Write to the camps asking for copies of your pay slips. You can Google for the exchange rates for the days you worked.

Cook_County

The last reply is not correct in these circumstances.

You are a nonresident alien who earrned less than an annual exemption. So if you file a US tax return - form 1040NR - in January/February when you have your W2 you'll be able to reclaim all of the US taxes.

The income is entirely taxable in the UK.

robb2002

I don't understand the tax return forms??? I just need to sort this out ASAP as my tax code will expire soon and I will go onto emergency tax again. Please help!!

Amba_Gambla

I'm assuming when you went on Camp America you travelle don a J1 visa?

If so, then you weren't working, you were on a 'Cultural Exchange' (sounds dodgy, but that's how the whole camp america system works), therefore any money you 'earned' wasn't pay, it was pocket money, so therefore, shouldn't have to pay tax on it.

tigtag02

Just for the record BR is not emegency tax!!

Its simply a tax code that stands for Basic Rate (ie - no allowence).

I'm sure most of you knew that though!!