Double taxation UK and Japan.

[japanworker]

Hello,

In November 2004 I left the UK to work and live full time in Japan for a Japanese company. I intended to stay longer but due to personal reasons I will now be returning to the UK in November 2005. Since day one I have paid income tax in Japan. Having looked into the residency rules I believe that I will be liable for UK tax
in both 2004-2005 and 2005-2006 tax years. As Japan has a double taxation treaty with the UK will I be able to claim my Japanese tax back or get a credit against my UK tax liability ?

Many thanks for any assistance offered.

Japan worker.

[deanshepherd]

You will be able to get a credit against your UK tax liability for the tax you have paid in Japan. You will not be able to claim a refund of Japanese tax in the UK. It is probably worth contacting a Japanese tax adviser before you return to the UK to see if you are due any tax back in Japan.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk

[japanworker]

With regard to my above situation - for both tax years mentioned I have not paid any money into my personal UK stake holder pension. Is there any way to reduce the tax burden by paying some of my earnings into the pension ?

Any advice gladly accepted, thanks.

Japan worker.