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Where Taxpayers and Advisers Meet

Income tax calculation - returning from abroad

SK3LLY123
Posts: 11
Joined: Wed Jul 02, 2014 6:05 pm

Income tax calculation - returning from abroad

Postby SK3LLY123 » Wed Dec 03, 2014 9:22 pm

Hi

hopefully someone can give me an idea of how my 2013/14 tax assessment will go.

I was working in Norway until 0ct 2013 - in the Norwegian PAYE system - so I will be claiming foreign tax relief for that portion of my pay.

I then came back to the UK and went self employed

I earned approx 70k in Norway and 20k back in the UK - just staying under the 100k threshold for personal allowance reduction.

Assuming that my foreign tax paid is sufficient to cover my liability from a UK point of view, how will my personal allowance be factored into the tax calculation.

Do I declare my income as 20k - 10k expenses and 8k personal allowance(some residual issues from previous years - reduce it from 10.5k) and only pay tax on 2k; having claimed foreign tax relief.

Or is it more onerous as I suspect.

nikkisizer
Posts: 342
Joined: Fri Nov 04, 2011 5:26 pm
Contact:

Re: Income tax calculation - returning from abroad

Postby nikkisizer » Thu Dec 04, 2014 7:50 am

Or is it more onerous as I suspect.
Hi SK3LLY123,

The answer to above is yes.

The rules surrounding foreign tax credit relief and the associated calculation are complex as is residency as these rules changed significantly with effect from the 2013/14 tax year so unfortunately it is not as simple as your example provided.

Happy to help so if you need any further assistance please do not hesitate to contact me.
Kind regards,

Nikki Sizer

Sizer & Co Accountants
nikki@sizeraccountants.com
[url]http://www.sizeraccountants.com[/url]

Birmingham - London - Manchester - Leeds

jason13
Posts: 153
Joined: Mon Mar 28, 2011 2:02 pm

Re: Income tax calculation - returning from abroad

Postby jason13 » Fri Dec 05, 2014 2:21 am

When did you leave the UK to work in Norway and what ties did you keep in the UK (house, etc)?

If you became non-resident when you moved to Norway, the 2013-14 year would be a split year, meaning that only income earned after you returned to the UK would be taxed in the UK.

SK3LLY123
Posts: 11
Joined: Wed Jul 02, 2014 6:05 pm

Re: Income tax calculation - returning from abroad

Postby SK3LLY123 » Fri Dec 05, 2014 7:33 pm

Jason

I left in Dec 2011 and finished Oct 2013. I was working 3 weeks on and 1 week off.


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