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Remittance Calculation

Does it need to be grossed up?

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Good Afternoon

I can't find the answer I am looking for on this so I am hoping someone can point me in the right direction.

Client is a pilot.  Is UK and US dual resident.  The money he remitted to the UK for 2017/2018 exceeds the calculation for workdays in the UK.

So for example, if we calculate on workdays he would be taxed on £30,000.  However, he actually remitted £60,000.   All money is from Salary - there are no other sources of income.

So of course he will be taxed on the £60,000 remitted rather than the £30,000 earned.

Now my question is, as the £60,000 is a net figure, do I need to gross it up to calculate the tax owed?  Or I am making it too complicated?  I think I am questionning it as he has spent the whole amount remitted, but this is a net figure.


Replies (3)

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By chicken farmer
16th Nov 2018 08:43

He cannot be dual resident that's why there are tie breaker tests in the DTA

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By David Treitel
16th Nov 2018 16:34

It is pretty unusual for a US citizen to elect to claim the remittance basis. Is the client a US citizen? If not, what kind of US visa exists?

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By zarar
19th Nov 2018 22:35

He is American, lives in the UK for nearly 6 months of the year, has a house in the UK, daughter lives in the UK. The rest of the year (more than 6 months) he lives in the US

He is able to claim the remittance basis for one more year

This is the first year that the workdays calculation is lower than the amount remitted

So what I am trying to establish, not just for him, but for the remittance basis in general - should it be grossed up if in this case it is salary which would be received net

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