Foreign Tax Credit and Schedule D

GoGas

Can somebody advise where to enter and claim Foreign Tax Credit in relation to Schedule D or If I do not need to enter it? Live in UK and most earnings as employee but in addition have small amount (Turnover <£2k) of consultancy taxed under Schedule D. Last year some of this was from Republic of Ireland and substantial amount of tax was deducted before I was paid and later received a R of Ireland P60 showing total Income 2592 Euros and 1060 Euros tax deducted.
I know I should be able to claim this as a “Foreign tax Credit” on my self assessment form but as this is in the schedule D section not sure if or where I should put it. There seems to be a section for FTC paid employment for Foreign Earnings and also for capital gains but not schedule D. Do I add total RoI income (pre tax) I received into the turnover and then where do I enter the FTC to claim the tax back or do I enter just what I received (net) into turnover and not claim the RoI as I have already been taxed at 41% which I what would occur in the UK


Many thanks for any pointers or advice – I am sure I am missing something simple.


Paul

FTBFun

What year is this? There isn't a Schedule D anymore. It looks like employment income too rather than self employment.

You need to enter on the SA106 pages the following:

Line 2, page 1: the € 1060 (converted into GBP) (although check this is all tax and doesn't include Irish social security)
Page 6, "Foreign tax paid on employment....", country code IRL, foreign tax paid as above, X to claim foreign tax credit relief, taxable amount is €2592 in £.

You'll also need to have a separate employment page with the Irish employment details on.

Hope this is useful.

GoGas

Thanks. It is for 2010-11. Schedule D was what I called the "Self employment section". From what you say you seem to suggest I should omit completely from the Self Employment/Turnover and complete a second In addition to main) Employment section labelling it as Foreign Income

antrobus

Have a look at HMRCs very own 'Foreign Notes' - https://www.hmrc.gov.uk/worksheets/sa106-notes.pdf There is a section entitled 'Foreign tax paid on employment, self-employment' with instructions.

FTBFun wrote: »

It looks like employment income too rather than self employment.

I understand what you're saying, but I wouldn't jump to that conclusion, just because a foreign jurisdiction operates some kind of withholding tax.

ceeforcat

It is employment income, given that the poster mentions P60, and this has been taxed at 41%, the highest rate in Ireland.

Under the schedular system of taxation this would have been classed as Schedule D Case VI income, I seem to remember and maybe this is where the confusion has arisen. While most associate self-employed income as being the only income taxed under Schedule D, it should be remembered that Schedule D is appropriate to all income which does not fall into another schedule including furnished lettings etc.

antrobus

ceeforcat wrote: »

It is employment income, given that the poster mentions P60, and this has been taxed at 41%, the highest rate in Ireland.

Well if you have sufficient knowledge of the Irish tax system to state that as a fact that's fine. The previous poster simply said that it "looks like" employment income. I think it looks like employment income too, but I wouldn't leap to the conclusion that it was, unless I knew that it was.

ceeforcat

Perhaps I am missing something antrobus? Does the poster not say?:

before I was paid and later received a R of Ireland P60 showing total Income 2592 Euros and 1060 Euros tax deducted.

ROI system very like Uk apart from the calendar tax year, that is!

Anyway, just stating my view, like yourself. Perhaps we will just agree to differ?

antrobus

ceeforcat wrote: »

Perhaps I am missing something antrobus? Does the poster not say?:

before I was paid and later received a R of Ireland P60 showing total Income 2592 Euros and 1060 Euros tax deducted.

ROI system very like Uk apart from the calendar tax year, that is!

Anyway, just stating my view, like yourself. Perhaps we will just agree to differ?

Sorry, what are you arguing about?

ceeforcat

I am just pointing out that the reason that I am convinced that it is employment income, when you have some, not unreasonable, doubts is down to the reference made by the op that he/she had received a P60 detailing pay and tax deducted. That just appears to be conclusive to me.

Perhaps I am wrong but I have no wish to argue with anyone, least of all a fellow contributor who is trying to do what we are all here to do - provide advice where possible.

GoGas

Thanks for your helpful comments and advice. Will look thro the HMRC guidelines and then a call to the help line but at least I now have some idea of the questions to raise. Looks like perhaps I should remove it from the self employment section total turnover and enter is a second employment for just this year and then fill in the foreign income aspect

GoGas

Thanks for contributions - as result have worked it out and where and what to enter now in the TaxCalc programme and have now filed (at least for another year) !!