Who gets my 2007 tax return?

onerabbit

Hi,

Someone may know the answer to this one.

I am a bit confused as to who has the best claim to the income tax I will have to pay after filing my tax return for 2007. The first four months of last year I was living in Germany but working across the border in Switzerland. The swiss take 4.5% of your pay and issue a certificate to hand over the the german inland revenue when the yearly return is made. In previous years I have done this and there was always more to pay as german income tax is very high. In May 2007 I confused issues by returning to live and work in the UK. I paid tax for the rest of the year with PAYE and think I don't owe HMRC anything. But what about the missing tax from Jan-April. Must I do partial tax returns for germany and the UK? Can you do two in one year?

thanks

ScarletBea

I also moved to the UK (from Switzerland, not Germany) halfway through the year, and it was the same when I moved to Switzerland mid-year some years ago.
You file a tax return for Jan-Apr in Germany, regarding all income and interest, etc, for those 4 months, and then May-Mar here in the UK will be separate.

I've had to fill in my swiss tax return for Jan-June, and will then take care of July-Mar here with the self-assessment, but not including anything from the beginning of the year.

dzug

Most people in the UK on PAYE don't do tax returns so the answer may well be academic.

You are obliged to notify the taxman if you think you owe tax, but not otherwise.

ScarletBea

Yes, but he still needs to file a tax return in Germany for those first months, otherwise there might be trouble.

ohbrightone

from the sounds of it you need to complete returns for the UK, Germany and Switzerland based on the assumption that

1. you did not remain outside the UK for a full 6 april to 5 april
2. prior to this you were resident and ordinarily resident in the UK.

Basically as a uk resident you are liable to tax on your worldwide employment income. As someone living in germany you MAY have become German resident and therefore liable to German taxes on your employment income. however, you would need to check this. As you were working in Switzerland these days are sourced to Switzerland and therefore, switzerland has the primary taxation rights.

I cannot comment on the systems in Germany and Switzerland; however, in the UK, assuming my assumptions are correct, you will be liable for UK tax on your foreign employment income. However, you may claim a foreign tax credit for any taxes paid (this figure is taken off the swiss return).