P46 query: Present Circumstances

runningfool

Hi - I am trying a couple of forums for this so hopefully you might also be able to help me please.

A friend has been living in an EU country for 8 years and working for one company. This company are now going to continue his employment in the UK so he is moving back. He will then be paid in Stirling, but remains in their employment.

He has been given a P46 to get him back in to UK tax but is unsure which box from the above section to tick.

Just a quickie but want to get it right.

Thanks

sheramber

The P46 is no longer used. I tlooks like his employer needs to contact HMRC to get up to date.

purdyoaten

sheramber wrote: »

The P46 is no longer used. I tlooks like his employer needs to contact HMRC to get up to date.

You are correct in that it is no other used but I have found that many employers still ask new employees to complete it as the information is almost exactly that which is requested on the new employee starter checklist. I would tend to agree with them - always handy to have something signed by the employee in case problems arise in the future e.g. 'I didn't tick Box A, my employer did!'

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/374305/starterchecklist.pdf

runningfool

Thanks! So....which option do you think would be right in his position?

Statement A: This is my first job since last 6 April and I have not been receiving taxable Jobseeker’s Allowance, Employment and Support Allowance or taxable Incapacity Benefit or a state or occupational pension.

Statement B: This is now my only job, but since last 6 April I have had another job, or have received taxable Jobseeker’s Allowance, Employment and Support Allowance or Incapacity Benefit. I do not receive a state or occupational pension.

Statement C: I have another job or receive a state or occupational pension.

runningfool

Oh - it is an EU country based company that employs him and will continue to do so - not a UK based one, if that helps?

purdyoaten

Difficult one! Personally, I would go for box 'B' as, at least, the tax would be correct from here on in. His residency status needs clarifying.

Your friend should attach equal importance to this form though.

http://www.gla.ac.uk/media/media_90443_en.pdf

runningfool

Blimey - that looks complicated. Should his company help him with that? He is British - just been living abroad while working for the company.

purdyoaten

runningfool wrote: »

Blimey - that looks complicated. Should his company help him with that? He is British - just been living abroad while working for the company.

He would still have to determine his residency status for this tax year, as he would have done for the year that he left on a similar form. On the face of it he would have been non-resident for the last eight years! You did suggest that he had not been paying UK tax!

runningfool

purdyoaten wrote: »

He would still have to determine his residency status for this tax year, as he would have done for the year that he left on a similar form. On the face of it he would have been non-resident for the last eight years! You did suggest that he had not been paying UK tax!

Many thanks. Yes - that's true, he has been non-resident for 8 years - just didn't know about this form (just helping out a mate you see). Thanks for the link - very useful. But you think option 'B' is the best on the form for now? Not 'A', as in he hasn't had a UK taxable income...?

purdyoaten

runningfool wrote: »

Many thanks. Yes - that's true, he has been non-resident for 8 years - just didn't know about this form (just helping out a mate you see). Thanks for the link - very useful. But you think option 'B' is the best on the form for now? Not 'A', as in he hasn't had a UK taxable income...?

That is the quandary. If he is deemed to be non-resident for 2014/15, 'A' would seem the natural choice in the end. If not, and he was liable to UK tax on his earnings abroad, 'B' is a safer option. Either way, all will be reviewed at the end of the tax year - but not without completion of the other form. It would be better if it was competed asap and sent to HMRC - perhaps a code will be issued in time for the end of the tax year.

runningfool

That's great - thanks so much for your help!