complicated tax issues

mickymellon

having moved to Holland to work since 1st March 2006, I worked for the same company and therefore taxed in Holland

This position finnished and now I am working in Holland for a UK co and getting paid into my UK account - paying tax through an umbrella company that pays via dividend

now... the first company is looking for a p46 and p85 which it plans to send to the UK Government (so im told)

I plan to travel around for a bit after this placement and therefore will not have been back for 2 years (coincidently 2 full tax years).

- what is the likely hood that I could be faced with a large bill soon; what is likely to happen if these forms are not filled in?

- also midway through last year I bought a flat in the UK which has been rented out for 4 months just covering the mortgage.

pls help as this whole mortgage then moving away and now tax stuff is all very new and stressful

Cook_County

From what you have said you have been in full-time employment overseas for a period that included a complete UK tax year. Therefore you are non-UK resident and subject to UK tax on only UK source income such as rental income.

I assume you are registered under the non-resident landlord scheme and that you filed a UK tax return for the year ended 5 April 2006 showing on the non-residence pages that you ceased to be UK resident on 1 March 2006. There is nothing further that you need to do until 5 April 2007 when your next UK return is due.

You may find that a composite company is inefficient in the Netherlands if it does not qualify for the 30% ruling, but you need specific advice in the Netherlands on this aspect as well as reporting worldwide income on your Dutch tax returns.