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Where Taxpayers and Advisers Meet

Split year treatment and SA102

Colombo85
Posts:6
Joined:Sat Sep 11, 2021 11:42 am
Split year treatment and SA102

Postby Colombo85 » Sat Sep 11, 2021 11:55 am

Hello

Wondering if someone could kindly help with the below...

I moved from the UK to Denmark and became a Danish tax resident on 9th October 2020. I remained employed by my UK company and continued to be paid in £sterling however after filling out a P85 form my tax code was changed on 9th October to "NT" and I did not pay any UK tax on the income from 9th October to the end of the tax year. In September I started renting out my UK property and have received rental income from September 2020 to the end of the tax year. As I became a Danish resident mid-year, and having applied the tests, I am eligible for split year treatment.

I am now filling out my tax forms to declare my rental income for FY 20/21. As part of this I understand that I need to complete my employment SA102 form. On this form do I state my full salarised income for FY 20/21 (i.e. what it says on my P60)? Or do I only declare the amount for the period up to 9th October (I.e. up until I became a Danish tax resident)? My problem is that if I declare the figure on the P60 then I owe an additional £4k in tax as it doesn't take into consideration any of the income tax that I have paid in Denmark.

Any help much appreciated

Thanks!

etf
Posts:774
Joined:Mon Nov 02, 2009 5:25 pm

Re: Split year treatment and SA102

Postby etf » Mon Sep 13, 2021 11:46 am

Presumably you will be claiming split tax year treatment under Case 1 if you expect to remain in full-time work overseas broadly throughout the following UK tax year (2021/22). Note the split tax year date will not necessarily coincide with the date you left the UK/landed in Denmark.

If you report all of your employment income in the employment page of your tax return you can claim the non-liable portion of your earnings (by virtue of the split tax year claim) in the additional information pages of your return.

Colombo85
Posts:6
Joined:Sat Sep 11, 2021 11:42 am

Re: Split year treatment and SA102

Postby Colombo85 » Mon Sep 13, 2021 12:08 pm

Many thanks ETF, for your response. I've had a look at the SA101 Additional Information form (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/974830/SA101-2021-Online.pdf), and can't see anywhere where I would add this. Any pointer would be much appreciated.

Many thanks

etf
Posts:774
Joined:Mon Nov 02, 2009 5:25 pm

Re: Split year treatment and SA102

Postby etf » Mon Sep 13, 2021 1:08 pm

Box 12 on page Ai4 (foreign earnings not taxable in the UK).

Colombo85
Posts:6
Joined:Sat Sep 11, 2021 11:42 am

Re: Split year treatment and SA102

Postby Colombo85 » Mon Sep 13, 2021 3:51 pm

That is incredibly helpful. Thank you! I'd been searching for that for about 3 days!

Do you also know whether on Box 10 of the SA109 form, which asks for the number of days spent in the UK during 2020-21, I would enter the number of days from the start of the tax year or from the date I became a Danish tax resident (i.e. from October 9th 2020)? Same with Box 13 and 14 which ask very similar questions. I'm not sure whether I am filling this out from the perspective of the whole tax year or just the portion that I became a non-UK tax resident.

Many thanks in advance!

darthblingbling
Posts:417
Joined:Wed Aug 02, 2017 9:09 pm

Re: Split year treatment and SA102

Postby darthblingbling » Mon Sep 13, 2021 4:30 pm

Days after you cease to be UK tax resident for whatever split year case applies (i.e. the overseas period)

etf
Posts:774
Joined:Mon Nov 02, 2009 5:25 pm

Re: Split year treatment and SA102

Postby etf » Tue Sep 14, 2021 10:14 am

The notes on page RRN3 for box 10 and RRN4 for box 13 confirm darth's response. I'm not sure box 14 will need to be completed.

Colombo85
Posts:6
Joined:Sat Sep 11, 2021 11:42 am

Re: Split year treatment and SA102

Postby Colombo85 » Tue Sep 14, 2021 2:24 pm

Thanks all, this is starting to make much more sense now.

I do have another question though. Presumably I add the tax I have already paid in Denmark on the property rental in box 21 of form SA105 (Property?)

Thanks again!

darthblingbling
Posts:417
Joined:Wed Aug 02, 2017 9:09 pm

Re: Split year treatment and SA102

Postby darthblingbling » Tue Sep 14, 2021 2:29 pm

UK will have primary taxing rights on the UK rental profits (i.e. first bite of the cherry). You would need to claim an FTC in Denmark for UK taxes paid.

Colombo85
Posts:6
Joined:Sat Sep 11, 2021 11:42 am

Re: Split year treatment and SA102

Postby Colombo85 » Tue Sep 14, 2021 2:47 pm

Ah, that's a shame! For a moment there I thought I was going to get a £3k tax rebate from the UK :D.

A couple more things:

- On SA109 - Box 16 I've ticked yes as I am a UK citizen so should be entitled to claim a personal allowance (and therefore have not ticked Box 15)
- SA109 Boxes 20,21 and 22 I have left blank as my understanding is that these are not relevant for employment income or property rental income, only things like dividends, interest, royalties etc

Are these assumptions correct?

Finally, could anyone help with this:
- SA109 - Box 23 (Domicile) I have not ticked as although I am now a Danish resident my domicile is probably still in the UK. Is that correct and does it matter for this?

Thanks again, this has been a huge help so far. I'm so glad I found this site!


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