Tax deducted from foreign income

by **lucky24** on Tue Nov 08, 2011 11:44 pm

I am completing a UK tax return which has foreign income with tax deducted at source, so far so good. But I have reason to believe the foreign tax will be refunded. Does this alter things? Should I still enter the tax deducted?

All the guidance just says to enter the tax deducted, which it has been. But it doesn't seem right to enter the tax deduction on the UK return when it is possible that the foreign tax will be refunded.

What are your thoughts? Any help in pointing me in the direction to find the answer?

by **nikkisizer** on Wed Nov 09, 2011 8:42 am

Nikki, the idea of the Forum is to provide initial advice and not just to say "I can help, get in touch". [original content removed - Ed]

by **maths** on Wed Nov 09, 2011 2:33 pm

Why do you believe the tax withheld will be refunded?

Which country is involved?

by **lucky24** on Wed Nov 09, 2011 3:18 pm

The country is Ireland. A Irish tax return has been completed and i think the income is under the limits of the personal tax credits (their personal allowances if i understand it correctly) so believe the tax deducted at source will be refunded.

by **pawncob** on Wed Nov 09, 2011 4:11 pm

Until the tax is refunded you won't know. Submit the return within the time limit and declare the tax deducted at that time.

by **maths** on Wed Nov 09, 2011 4:20 pm

If at the date of lodging your UK return no refund has actually occurred and you have not been officially informed of any refund then you should list the tax as having been deducted. If and when a refund is forthcoming then you can inform HMRC accordingly.

by **mullet** on Thu Nov 10, 2011 7:06 pm

nikkisizer wrote:Hi,
I have sent you a PM on this subject.
Kind regards

Is this an open forum, or a place to find new clients? Surely advice should be given in public responses (unless the matter is of a private nature of course).