Aligning German and UK tax years.

by **Kaiser Friedrich II** on Thu May 08, 2008 4:51 am

My accounts for a rental income in Germany are produced in German showing expenses, income and profit etc. for the German tax year (1st Jan to 31st Dec).

Can I use these figures as they are in the UK but submit them as if they were for the period 6th of April to 5th of April?

Whether or not this is accommodated by the tax man, I might wish to have the calculations repeated in the UK, for the tax year, and deduct this cost from the UK bill. (before deducting my German double taxation credit.) As a way of paying less tax specifically to Gordon Brown, is this OK?

Thanks in advance,

A disgruntled small-time Non-Dom.

by **Simon Sweetman** on Thu May 08, 2008 6:38 am

It is probable (but not necessarily the case) that the figures will be the same because the allowable expense will be the same - in fact if this is a furnished letting they may well not be if only because of the 10% wear and tear rule.

Strictly speaking you need to apportion the figures to the UK tax year, and if there is a double tax claim against them that may be the safest thing to do - and yes, the cost of reworking will be an allowable expense.

I am sorry that you resent paying tax in this country, but since you live here that seems not unreasonable to me.

by **Kaiser Friedrich II** on Wed Sep 30, 2009 1:45 pm

You say 'Strictly speaking...' is there any other way?

The problem I have is that the Jan, Feb and March of the current year are not processed in Germany until next year - which is too late for this year's return.

The only option I have is to get the German side to do a 3-month account for me alone and send it to the UK. (The bussiness is shared 4 ways, with the other 3 intersted parties living and paying tax in Germany.)

Thanks