Credit of Double Taxation

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I am accountant of my company and newly joined this organization. I am processing payroll of employees. For all employees we devide their salary into UK and India (both paying in GBP). There is fix amount for UK salary (Gross £1000 PM) but for India it is balance payment of the month. For example, if emaployee is liable to get £5000 in a month then we devide it in £1000 as UK salary and £4000 India salary. We deduct Tax and NIC from UK salary every month and paying to HMRC. And for India salary we deduct TDS at 10% on basic salary ( allowance is not considered for TDS calculation).

My question is when employee file their SA100 how foreign income and tax credit can be shown? Please suggest taking above example or give me your best ideas to implement.

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By tom123
24th Jan 2017 16:00

What work are the staff doing, and where is it being carried out?

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By Tim Vane
24th Jan 2017 17:02

I think that the employees' tax returns are the very least of your problems. What makes you think the full £5,000 salary should not go through PAYE?

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