The company has made a profit for 2019-2020. At that time company also paid withholding tax in Poland. (Tax = 200 GBP, WHT = 300 GBP) The tax was to be covered by WHT. The company received a letter of unpaid tax last month.
HMRC explains that: "The latest notes advise - the amount claimed for IT at source appears to be withholding tax so cant be claimed as IT at source its DTR, so correct claim has to be made Dir will need to review the DTR rules and can only claim a max of the UK liability. Here is some guidance: https://www.gov.uk/hmrc-internal.../double-taxation-relief And from what the team have advised. You would need to review the rules above as the claim exceed the maximum amount"
Has anyone had this situation? Does anyone know what the maximum deduction is?