Anyone know how I’d claim withholding tax relating to Austria employment?

inasitu

Apologies if this topic has been covered previously.

I’m a UK citizen having always lived in the UK with an option of 9-11 weeks work in Austria for an Austrian company with no UK subsidiaries.

I’ve been advised that 20% withholding tax would be deducted from my pay – but I can claim it back.

Does anyone know this to be correct? If so, how I’d claim it?

·         Would it be something I'd report on my UK self-assessment and HRMC would then somehow claim it?

·         Would it be that I submit some sort of tax claim form to the Austrian authorities?

I’m trying to work out if there’s any way for this particular work that I’d be expected to pay tax in Austria and tax in the UK (i.e. being double charged)

Thanks   

Pennywise

Double taxation treaties usually mean that the tax due in the UK is offset by the tax deducted abroad, but you can't claim a refund from HMRC if UK tax is less than foreign tax.  I.e. if you have had £5k tax deducted in Austria and your total UK tax due is £6k, you just pay HMRC the difference of £1k, but if reversed, i.e. Foreign tax deducted £6k but total UK tax is only £5k, you can't reclaim the foreign tax.  That's all assuming you're UK resident/domiciled for tax in which case you're liable to UK tax on worldwide income.

sheramber

I’ve been advised that 20% withholding tax would be deducted from my pay – but I can claim it back.

Have you asked the person who advised you how you claim it back?

Jeremy535897

Under the UK Austria double tax agreement, it would appear that most employment income (Article 14) paid by an Austrian employer for work carried out in Austria by a UK resident (see Article 4) can be taxed by both the UK and Austria. That would mean that you would pay tax in the UK on your worldwide income, and would receive a credit in the UK (claimed on your self assessment tax return) for the Austrian tax paid against the UK liability on that income, up to a maximum of the UK tax payable on it.

inasitu

Thank you for all your replies

inasitu

Jeremy535897 said:

Under the UK Austria double tax agreement, it would appear that most employment income (Article 14) paid by an Austrian employer for work carried out in Austria by a UK resident (see Article 4) can be taxed by both the UK and Austria. That would mean that you would pay tax in the UK on your worldwide income, and would receive a credit in the UK (claimed on your self assessment tax return) for the Austrian tax paid against the UK liability on that income, up to a maximum of the UK tax payable on it.

I have been looking further into this as I have since been asked to provide a certificate of fiscal residence (finance office)

When attempting to apply for such a certificate online via the HMRC website - a question asks if it's being applied for in advance, selecting yes and inserting an (in advance) date in June as a starting period it then asks "what date DID you leave the UK", (NOT WILL you leave)

I then enter the date in June I'd be leaving, then it comes up with an error message saying "a date in the future cannot be selected"

I've tried to find out by ringing HMRC to clarify things but wait times are too long, so I thought I'd ask here if anyone knew if applying for a certificate of fiscal residence (finance office) is something that can be applied for in advance of working in Austria to avoid being double tax?

Or, something which has to be done after working in Austria to claim back after being double-taxed?  

Thanks in advance

Jeremy535897

If it contemplates something in advance, perhaps you should try again after you have left the UK but before you start earning in Austria?