Foreign Tax Credit Relief - didn't file Self Assessment

Foreign Tax Credit Relief - didn't file Self...

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Here is a timeline of events:

August 2009 Migrated to UK from New Zealand

August 2009 - Jan 2010 Worked remotely in the UK, for previous employer in NZ. Salary paid into NZ bank account, and rightly or wrongly income tax was paid under NZ's PAYE equivalent (I was still tax resident in NZ during this 6 month period)

Feb 2010 Continued work for the company via a UK umbrella company with all tax paid in the UK. I am revisiting this to try and get everything in order. It seems I should have filed a Self Assessment for 2009/2010 but I was not aware of this at the time. If I did, it seems I would have claimed Foreign Tax Credit Relief for the tax paid in NZ.

1) If I am able to claim Foreign Tax Credit Relief, does this mean no(or little) tax would be due in the UK?

2) Should I now file a (very) late Self Assessment?

3) What are the penalties? Thanks very much for any replies.

Replies (7)

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By kiwiguy99
08th Jun 2015 10:20

Can anyone help on this?

Would be greatly appreciated.

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By Tim Vane
08th Jun 2015 13:44

You are out of time for filing a 2010 tax return.

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By kiwiguy99
08th Jun 2015 14:25

So what (if any) are my options?

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By Tim Vane
08th Jun 2015 14:34

You have no options. You are out of time for overpayment relief, and HMRC have no concessionary power to grant relief outside the time limits unless you can demonstrate that they were at fault for the error, which seems unlikely.

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By kiwiguy99
08th Jun 2015 17:07

From what I can see 'overpayment relief' would apply if I had overpaid tax and wanted to get some of it back.

That is not my concern, rather I want everything to be 'on record' as it's a possibility my tax history will be checked in an upcoming visa application. ie: HMRC/UKVI looks at my tax history and sees a 6 month period I paid no tax when I was in fact working.

Was I obliged to inform HMRC of the overseas work and if so is there anything I can do to remedy it?

 

Thanks

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By Paul D Utherone
08th Jun 2015 17:43

Why do you think you should have filed SA for 09/10?

Is it because you were a director of the umbrella co?

Did HMRC ask you to submit a return for 2009-10 and if not did you have a UK tax liability for the year? If the answers are no, and no, then I would say you should have no problem.

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By kiwiguy99
08th Jun 2015 18:15

Thanks for the reply Paul

I think I should have filed a SA because I had oversesa earnings that were taxed at source - I (recently) completed a questionairre on the HMRC site and it said I should in that circumstance.

There was no umbrella co - I was paid a salary in NZ to an NZ bank account, tax paid in NZ but residing in the UK.

HMRC has not asked me to submit a return as they don't know I was working at that time and I have never being registered as self employed. I have being PAYE since then.

I have not yet calculated if there is a tax liability but I suspect due to the double taxation agreeement the amount is minimal or nothing.

From what you say it sounds like there will only be an issue if I owe tax for that year.

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