Miscalculated Tax 2020/21

_Penny_Dreadful

born_again said:

_Penny_Dreadful said:

During the 2020/21 I was working overseas and was not a UK tax resident (P85 submitted to HMRC).  Whilst overseas I was working for a subsidiary of the UK based company I was working for whilst a UK tax resident.  Although resident in Australia I was being paid through the UK company in GBP until 30th June 2021 and so income tax and national insurance were being deducted from my salary.  In my 2020/21 Australian tax return I have also been charged income tax on the same earnings and had to pay that money to the ATO.  As I understand it the incomes tax should be paid to either HMRC or the ATO but not both.

Looking at my UK 2020/21 tax return, completed by an accountant familiar with both jurisdictions, I should have been due a refund of circa £4,500 but my tax calculation from HMRC says that I am not due a refund.  My accountant agrees that I should have received a circa £4,500 refund.  How to I make HMRC recalculate my tax return?  I have written to them and received no response.  I have filed a complaint and have had no response.  What should I do?

Last time HMRC wouldn't refund me money I had to get my MP involved.  Will I need to do the same again?

Was this being paid into a UK bank account?

Yes it was. 

BoGoF

 You need to complete HS304 to claim the refund.

Grumpy_chap

_Penny_Dreadful said:

As I understand it the incomes tax should be paid to either HMRC or the ATO but not both.

Looking at my UK 2020/21 tax return, completed by an accountant familiar with both jurisdictions, I should have been due a refund of circa £4,500 but my tax calculation from HMRC says that I am not due a refund.  

Is it possible that HMRC are correct?
It is possible for both HMRC to be correct and for the Accountant to be correct.
How is is determined that the £4.5k overpayment of tax is to be refunded by HMRC and not by ATO?

I am not familiar with overseas working and how double taxation works, so I ask as a genuine question.  BUT, if the refund is correctly due from ATO, then HMRC would (presumably) not make the refund.

[Deleted User]

It would be interesting if the op could provide some details in the calculation - particularly with respect to the tax paid in Australia and whether it appears at all. 

It should be known that Australia has a different tax year to the U.K. (July to June) - so not straightforward. 

Most unusually the op has indicated that no income or tax deducted is included in the calculation. 

_Penny_Dreadful

What details would help? I was paid by the UK entity in GBP into a UK bank account and income tax was deducted via PAYE. This is reflected in my payslips and on the SA102 submitted to HMRC. In HMRC’s calculation there is no mention of the GBP employment income or the PAYE deducted, both are completely missing. That’s why I believe HMRC’s calculation is wrong. 

The ATO wanted the tax on that income because I was a tax resident in Australia, and only Australia, during that period which as @[Deleted User] points out has a different tax year. We are talking about a period from 6th April 2020 to 30th June 2020 so it does fall into the Australian 2020/21 tax year. Making the change so I was paid from the Australian entity into an Australian account in AUD on 1st July 2020. 

sheramber

The tax calculation is made by the computer from the information submitted. No human looks at it. So if a page is not captured there must be something in the submitted return that stopped it. Maybe a box ticked or not ticked. The tax calculation only shows what was computed from  the information captured. 

_Penny_Dreadful

sheramber said:

The tax calculation is made by the computer from the information submitted. No human looks at it. So if a page is not captured there must be something in the submitted return that stopped it. Maybe a box ticked or not ticked. The tax calculation only shows what was computed from  the information captured. 

It was a paper return sent to HMRC. People living outside the UK cannot submit their tax returns online. Before you ask, yes I am positive all pages were in the envelope. HMRC will also have received the income and PAYE data from my employer. 

[Deleted User]

_Penny_Dreadful said:

We are talking about a period from 6th April 2021 to 30th June 2021 so it does fall into the Australian 2020/21 tax year. Making the change so I was paid from the Australian entity into an Australian account in AUD on 1st July 2021. 

If we are talking about the period 6th April 2021 to 30th June 2021 we are dealing with the 2021/22 tax year in the UK, not 2020/21. 

All very confusing!

Dazed_and_C0nfused

[Deleted User] said:

_Penny_Dreadful said:

We are talking about a period from 6th April 2021 to 30th June 2021 so it does fall into the Australian 2020/21 tax year. Making the change so I was paid from the Australian entity into an Australian account in AUD on 1st July 2021. 

If we are talking about the period 6th April 2021 to 30th June 2021 we are dealing with the 2021/22 tax year in the UK, not 2020/21. 

All very confusing!

Indeed!

Could it be as simple as the op looking at the wrong return?

Looking at my UK 2020/21 tax return, completed by an accountant familiar with both jurisdictions

_Penny_Dreadful

[Deleted User] said:

_Penny_Dreadful said:

We are talking about a period from 6th April 2021 to 30th June 2021 so it does fall into the Australian 2020/21 tax year. Making the change so I was paid from the Australian entity into an Australian account in AUD on 1st July 2021. 

If we are talking about the period 6th April 2021 to 30th June 2021 we are dealing with the 2021/22 tax year in the UK, not 2020/21. 

All very confusing!

Apologies, it was very late where I was when I replied yesterday.  It is for the period 6th April 2020 to 30th April 2020 where I was paid in GBP and PAYE was deducted so the UK 2020/21 tax return is correct.