Hi
I have a client who has done some work in Norway, their tax year goes from 1st January to 31st December whereas ours goes from 6 April to 5th April (individuals) The client has a P45 dated 26/12/2012.
I would assumed that these figures would go into the UK 12/13 tax return along with the double taxation relief? Is this true as HMRC are saying that it is for the year 11/12!
Any advice would be greatly appreciated before I have to go before I have to go back to HMRC.
Replies (10)
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If you have asked HMRC this question already (not sure why you felt the need to) the answer I would have expected them to give is that you need to split the income into two parts. That from 1 January 2012 to 5 April 2012 would go on the 2011/2012 UK return - and I am sure you can guess the rest.
Is that what they did in fact say?
If the year in which they have taxed him on all his 2012 Norwegian income is 2011/2012, as you seem to be suggesting, then yes that is plainly wrong.
Common sense
So in that case the income that he was taxed on his 2012 Norwegian tax return should be added to his UK 12/13 tax return? Is that correct?
I just don't want to go back to HMRC and advise this and look like a fool if it is not the case! Also further to your earlier note, about splitting the income, is this no longer the case now due to your last comment?
Sorry if i seem a little (or a lot) dim i just need to make sure I am clear about the situation before a make calls etc.
I am simply applying common sense here. On the 2011/2012 UK tax return client has to report income from all sources in the year in question - which is the year ended 5 April 2012 isn't it? By no stretch of the imagination was client's Norwegian income in the period after 5 April 2012 received in 2011/2012. That's all really.
Norwegian tax
If the company he is working for has paid his Norwegian tax on his behalf, then this may need to be added to his gross pay.
I think you should be clearer on what's added, plussed and deducted to/from the pay, and who's paying what, as it's very difficult to interpret.