tax overpaid/underpaid?

Tugela

I hope there is someone here who can explain this letter to me in simple form. Basically I was employed by a UK company but worked in Romania, and my salary went into a UK BankAccount I paid "Foreign Tax" each month which was deducted from my salary. I left this company in 2014 and HMRC queried where the figures shown on my self assessment came from (which acountants employed by the company had submitted) so I forwarded them copies of my payslips for the year 2013/2014. Today I received this letter and honestly have no idea what it means - can someone perhaps help me please......


The amount of Foreign Tax Credit Relief (FTCR) you have claimed equates to a rate of approximately 25%. The amount of foreign tax available for relief is the smaller of the amount of foreign tax allowed by the treaty

• the UK tax due
  A flat rate of 16% applies to Romanian employment income and as such the maximum
  FTCR you can claim is 16% of your employment income (£69,186).
  INTM161250 states:
• "The claimant must take all necessary steps to have his foreign liability reduced to that minimum, for example by claiming all the allowances and reliefs (for example, foreign
  personal allowances) due to him under the provisions of an agreement."
  You would therefore need to contact the Romanian tax authorities to claim a repayment for the additional amount

Wayne_O_Mac

Looks like you've paid 25% tax on your income in Romania.
This income is taxable in the UK, but you get a credit for tax paid in Romania.
The Romanian income tax rate is 16%.
You only get 16% of the income as a credit to set against the UK liability.
If you've actually had 25% deducted and it should only have been 16%, you need to contact the Romanian tax authorities to get the 9% back.

Tugela

Thanks for this - going to be a hard job!!

Tugela

So does anyone know the email address of the Romanian Tax Authorities? Phone calls don't help as they don't understand a word - I contacted the accountants that were doing my tax in Romania and they are ignoring me as well - what should I do - any ideas please and thanks

sheramber

Have contacted my son who is currently working in Romania to ask if he knows the address.

sheramber

Son has replied with what may be the address

ADMINISTRAŢIA FISCALĂ PENTRU CONTRIBUABILII NEREZIDENŢI

https://www.anaf.ro/anaf/internet/Bucuresti/structura/structurisubordine/nerezidenti_bucuresti/!ut/p/a1/hc7LDoIwEAXQb2HBlo4FKrhrwKQhRjc-oBsDSS0YpKRU-H2rcUPiY3Z3cm5mEEc54l05NrI0jerK9pk5ObMFIwxHOIu2hwRocsRpQNYY8NKCwgL4MhT-9U-Iz8mOpKElbI-DOPYB8Bv8OJEhLltVvd4taFf5kURci4vQQnt3bde1Mf2wcsGFaZo8qZRshaeVC58atRoMymcQ9bccrmE7bqjjPACjuZ6-/dl5/d5/L2dBISEvZ0FBIS9nQSEh/

Which is the fiscal authority for people who are non-romanian residents. Though they seem to be split by county, this is Bucharest, it may depend on where he was working in Romania?

However his HR department warn that there will be a lot paperwork involved- my son confirms the Romanians love paperwork- so it would probably be better to get a Romanian based agency to deal with it for you.

I know my son has had the accountants that his company use to help sort out his tax position.

agrinnall

Obviously that's not an email address, but there is one embedded in the web page that may be the one that's required.