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Where Taxpayers and Advisers Meet

Italian or UK Income Tax

Joined:Thu Dec 30, 2021 3:09 pm
Italian or UK Income Tax

Postby Hector20 » Thu Dec 30, 2021 3:46 pm

Hi all,
I have question regarding where I should pay my income Tax -

I am a British Citizen, and at the start of the contract detailed below I was resident in the UK.

I went to work in Italy in October 2020. The assignment was scheduled to be for approximately 2 years so the intention was to obtain Italian Residency, I have an Italian bank account and a Codice Fiscali but never got residency. Due to Covid I only worked in Italy in October and November 2020 and then returned home to work in the UK for a couple of months on the same contract. The agency I was working through insisted that whilst working in the UK I should be paid in the UK so I set up a limited Company for this, no issues on this one as I will pay my corporation tax and any personal tax via PAYE in the UK. The work came to an end in April 2021 so I only actually worked for 2 months in Italy.

What should happen with the income tax for the earnings in Italy in Oct, Nov 2020?
The agency I worked through have an Italian accountant representing me and he has arranged the relevant Income Tax payments (F24) in Italy, from my Italian bank account, so I have paid the going rate of tax in Italy for these two months. I now have to submit my UK tax return for 20-21 and as I look into this in more detail I am concerned that HMRC will also want the income tax on Oct, Nov 20 earnings from Italy as well, they will then leave me to try and obtain a tax refund in Italy!

Does anyone have any idea on what should happen in this situation?


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