Non-Resident Help

Non-Resident Help

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I have been approached by a client who has read on the internet that on the basis that they were not resident in the UK they are entitled to claim back all of the tax that they paid under PAYE (UK employer - duties performed in the UK) for the three months that they were working in the UK.

From my understanding the client is entitled to only that tax back that is covered by their personal allowance, and that even as a non-resident they cannot claim back any tax that is suffered on employment income earned above the personal allowance.

Unfortunately the client has read somewhere that they can claim all of the tax back. I don´t know whether I am missing something or whether there is something hidden in the treaty (client´s country of residence is Germany) but I cannot see anything that would imply that all tax should be repaid.

The Revenue have confirmed my understanding, hence I would be grateful if anyone has any comments, agreements, disagreements with what I believe and what the client believes.

Yours appreciatively.
Nathalie

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By AnonymousUser
21st Nov 2008 21:01

Depends
You say “UK employer” and this is the critical point. If the employer is UK resident you are right. If he is seconded from Germany he may well be right – see Article XI(3) of the treaty.

Harry Ross
RossTax Ltd
London N12 9RY

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