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Residency, Income Tax and Double Taxation relief

My client has been working in Germany and paying German income tax on his employment income.

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My client has been working in Germany and paying German income tax on his employment income.

I need some assistance on:

1) understanding where he is resident (I believe this to be the UK as he was ordinarily resident before, has a permanent residence in the UK and intends to come home, although doesn;t spend >183 days in the UK)

2) whether he is subject to double taxation relief (my understanding is that assuming he remains UK resident, he must pay UK tax on all of his gross income. He has already paid German tax so what if anything is reclaimable)

3) how do you claim double taxation relief on your self assessment return?

Many thanks for your help.

Daniel

 

 

Replies (7)

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By Chipette
06th Feb 2018 13:34
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Replying to Chipette:
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By Daniel Anderton
06th Feb 2018 16:03

Thanks Chipette, I'll take a look

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By Portia Nina Levin
06th Feb 2018 13:57

You should probably point your client in the direction of somebody with the necessary competence to act for them.

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By Trethi Teg
06th Feb 2018 14:06

Frightening!!!!

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By justsotax
06th Feb 2018 14:06

PNL is of course correct, the lack of knowledge shown by your questions certainly suggests that you are far beyond your comfort zone, not a criticism, just an observation.

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Replying to justsotax:
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By Daniel Anderton
06th Feb 2018 16:01

Good observation. I was kind of hoping that someone could point me in the direction of a few documents to refresh on it's been a while since I did this in my studies, rather than state the obvious.

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Replying to Daniel Anderton:
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By KungFuKipper
07th Feb 2018 09:26

Check their residency on the link given above. If the client is UK resident then they are taxable on their worldwide income so it must be declared. So long as the taxable income is direct offset (so, for example, income taxable as an employee in Germany but paid to a UK Company would break the 'chain') then should be able to offset tax paid in Germany against UK income tax under the DTA.

https://www.gov.uk/government/publications/germany-tax-treaties

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