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Where Taxpayers and Advisers Meet

Basics about double taxation and split year

NickPrice
Posts: 20
Joined: Fri Sep 11, 2015 12:39 am

Basics about double taxation and split year

Postby NickPrice » Wed Mar 07, 2018 11:30 pm

Hello,

I've been offered a job in Poland, while having one in the UK. I have the option of spending 6 months each place per year for a 3-year period (in which case the UK salary would be £25K, and the Polish Euro 20K) or to spend 12-18 months in Poland and then return. From the vantage point of tax what should my considerations be and do I have options to consider? I will retain a house in the UK (leave my family here), and have UK rental income.

NickPrice
Posts: 20
Joined: Fri Sep 11, 2015 12:39 am

Re: Basics about double taxation and split year

Postby NickPrice » Thu Mar 08, 2018 3:50 pm

I guess I need to be more explicit with my questions. First, I wonder if I pay tax on the UK-earned income in the UK, and the Polish tax on the Polish income, do I need to do more by way of the annual self-assessment. Second, what is the Polish tax year?

GlobalTaxAdviser
Posts: 626
Joined: Fri Dec 05, 2014 1:18 am

Re: Basics about double taxation and split year

Postby GlobalTaxAdviser » Thu Mar 08, 2018 8:01 pm

With your first option likely you will be resident in both countries and pay tax in both countries on the same income

Second option if timed well could end up paying tax only in Poland on the salary. Though the rental property will be taxed in UK and Poland too

Statutory Residency Test and maybe split year will determine your tax status in the UK.

NickPrice
Posts: 20
Joined: Fri Sep 11, 2015 12:39 am

Re: Basics about double taxation and split year

Postby NickPrice » Tue Mar 13, 2018 6:21 pm

Thanks for the previous reply. The situation is now leaning towards a single 5 months visit to work in Poland. Under 183 days, I should thus not be liable to worldwide income in Poland, and only on my earned income there. Is that correct? Also when I return, would I need to declare the Polish income on my UK tax return? Polish taxes would have been deducted by the Polish employer.


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