Ex Pat Tax Withhold ??

connedagain

Can anyone help I have a friend who is a student in America he has been there for 3years studying and coaching, (which he gets paid for) He got a tax bill from the american gov for $800, and also A tax bill to pay this government, £600 he was told this was with hold tax, Firstly what is this and why has he to pay our government when he doesnt live here.... any suggestions spoke to accountant and even he is baffled

Worcsman

connedagain wrote: »

Can anyone help I have a friend who is a student in America he has been there for 3years studying and coaching, (which he gets paid for) He got a tax bill from the american gov for $800, and also A tax bill to pay this government, £600 he was told this was with hold tax, Firstly what is this and why has he to pay our government when he doesnt live here.... any suggestions spoke to accountant and even he is baffled

So far as I understand, if your friend is resident for tax in the US, then the IRS can and will try to lay claim to your friends worldwide income for tax. The UK wont make you pay double taxation. Tell your friend to demonstrate to the uk taxman that he was resident in and paid tax in the US or where ever he/she was. $800 is less than 600 quid so given the choice, I would pay the yanks, as much as I loathe them.

2 things your friend should do..

Get some proper tax advice.. Not from a mate down the pub, I tried that and it doesnt work. And speak to the UK taxman. It maybe that they should pay the UK tax then claim it back.

Hope that helped.

connedagain

Thank you so much, will pass info onto him,

suso

Chuckie1998 wrote: »

Hi,

Just received my payslip today for April, when my NT should have finished.

In the deductions column on the payslip it states

"Ex Pat Tax Withhold" £348

NI A £209

Tax NIL


Anyone know what this means? I thought that my payslip would be back to normal once the NT had ended.

Thanks

nothing to do with the tax office this.

There is only one form of tax deducted from wages and that is income tax. There is no such thing as ex pat tax with hold

The only possible solution would be its something that your employer has done - possible connected with their payroll software. (HMRC do not tell the employer why a NT code is being used, but they are quite frequently used for ex-pats, who have to pay tax in their country of residence)

A quick calc would put your gross pay at approx £2343 this month.
If the 348 was not deducted, keep it to one side at it will be due at some stage.

When HMRC issue a NT tax code they send it manually with written instructions to the employer to use it until the end of the tax year and then revert back to the code that was being used before(with any appropriate uplift due to budget increases) from the start of the following tax year.

Unfortunately these instructions are frequently missed by payroll clerks

Chuckie1998

My gross pay was reduced by the "ex pat tax witheld" amount of £348.

Although my payslip states no tax paid, my take home pay was the same as if I had actually paid the tax. If that makes sense.

Ineedaname

So have you spoken to your wages department in the last two weeks to find out what's going on?

Chuckie1998

Yes. But each time I call they are "looking into it" !!

debtinfo

sounds they dont know either and dont want to admit it

Ineedaname

If you get no joy from one person then ask to speak to the boss. It doesn't take two weeks to look into something like that, they either know why they deducted the money and posted that note on your payslip or they don't. If they know they should tell you, if they don't they should rectify the situation.

Try once more with the boss, if no joy then tell them your next call is to the tax office to get it sorted out as they appear incapable.

This should be rectified before they pay you again.

suso

Chuckie1998 wrote: »

My gross pay was reduced by the "ex pat tax witheld" amount of £348.

Although my payslip states no tax paid, my take home pay was the same as if I had actually paid the tax. If that makes sense.

it does make sense,

keep your payslips safe, in case of any errors in the future.
It sounds like a description error on the software of your companies payroll.

But you have proof of the correct amount of tax being deducted, (regardless of what its called on the payslip) and as long as the net pay is the same as deposited in your bank account you will not be liable for any further tax.

Phoning the tax office is of no use, they simply do not see whats on the payslips on a monthly basis, Income tax may well have been deducted from you and sent to HMRC but until the end of the tax year HMRC will not know who the tax is for. All they know is that your employer, paid out xx amount of pounds in wages and paid x amount of pounds in tax,