UK Tax return for an EU resident /citizen

Filing a UK tax return for an EU resident/citizen for salary and dividend from a UK company 2020-21

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My clients are French nationals who are resident in France for UK tax purposes ( Husband & wife), they have a UK Ltd company from which they draw a salary and receive dividends.

I am trying to complete their UK Tax Return for 2020-21. 

Previously (2019-20) I was able to claim a UK personal allowance via my Iris software for these clients. I am also aware that previoulsy another way of claiming UK personal allowance was by submitting Form R43. The last one I can see on HMRC website is for 2019-20.

The question is how to claim UK personal allowance (if possible) for tax year 2020-21?  Can I still use Form R43?

Any advise on this matter is appreciated

Thanks in advance

 

 

Replies (20)

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By David Ex
06th Jul 2021 10:29

https://www.gov.uk/tax-uk-income-live-abroad/personal-allowance

“Claim the Personal Allowance
If you’re not a UK resident, you have to claim the Personal Allowance at the end of each tax year in which you have UK income. Send form R43 to HM Revenue and Customs (HMRC).”

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Replying to David Ex:
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By marlin
06th Jul 2021 11:06

Oops

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Replying to David Ex:
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By marlin
06th Jul 2021 11:07

another duplication

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Replying to David Ex:
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By marlin
06th Jul 2021 11:02

I did say that I know about FormR43 but that HMRC dont seem to have uploaded one for 2020-21

Thanks anyway

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Replying to marlin:
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By David Ex
06th Jul 2021 11:10

marlin wrote:

I did say that I know about FormR43 but that HMRC dont seem to have uploaded one for 2020-21

Thanks anyway

The form isn’t year specific. It has boxes to add the year.

https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

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Replying to David Ex:
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By marlin
06th Jul 2021 11:49

Thanks David

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By Tax Dragon
06th Jul 2021 10:40

Why are they taxable in the UK? Do they even need to be making tax returns here?

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Replying to Tax Dragon:
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By I'msorryIhaven'taclue
06th Jul 2021 10:51

Are they not liable to UK tax on their UK divs?

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Replying to I'msorryIhaven'taclue:
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By AndyC555
06th Jul 2021 12:05

As Lady Tina Green will no doubt confirm, if you are not UK resident then you are not taxable on dividends paid by a UK company.

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Replying to AndyC555:
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By I'msorryIhaven'taclue
06th Jul 2021 13:48

Ahha, I'd thought that was because Lady T's in Monaco.

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Replying to AndyC555:
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By Tax Dragon
06th Jul 2021 15:04

AndyC555 wrote:

...if you are not UK resident then you are not taxable on dividends paid by a UK company.

It's a bit more complex than that (s811 caps the tax charge, not exempts the source) but, as the cap is normally £Nil, yours is not a wholly unreasonable simplification.

I've read somewhere... ah, here it is... "For UK tax purposes, dividends have their source in the country in which the paying company is resident." Now, I confess I've not checked the definition of resident here. So my ASSUMPTION (I hate Aweb tax assumptions... .oO hypocrite) might be wrong, but as we are talking about tax, it's that it means tax-resident. So, with Matrix's point duly noted, are these even "UK dividends"?

With a small tweak:

AndyC555 wrote:

...if you are not UK resident then you are not taxable on dividends paid by a non-UK company

I find myself in complete agreement (obviously 'not taxable' refers to 'in the UK').

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Replying to Tax Dragon:
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By I'msorryIhaven'taclue
06th Jul 2021 15:12

Tax Dragon wrote:

It's a bit more complex than that (s811 caps the tax charge, not exempts the source) but as the cap is normally £Nil, yours is not a wholly unreasonable simplification.

In the context of Why are they taxable in the UK? Do they even need to be making tax returns here? (and assuming a UK company) would these French people be potentially taxable in the UK and, as a result, liable to submit a tax returns even if only to demonstrate a s811 capped £0 liability for UK div income?

Separately, I've no clear idea as to whether directors are still obliged to submit s/a returns by virtue of their directorship these days. That matter comes up in this forum now and again, although opinions vary.

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Replying to I'msorryIhaven'taclue:
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By Tax Dragon
06th Jul 2021 15:21

Don't know. Don't really care. But good question.

I guess if s811 involves a claim, then yes, to make the claim. If it's automatic (I think it is but you could check) then possibly not. The thought behind my post a-top this sub-thread was that they didn't sound like UK dividends. I've since expanded on that. (Sometimes [my] brevity is too brief and needs debriefing.)

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Replying to Tax Dragon:
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By I'msorryIhaven'taclue
06th Jul 2021 15:27

Tax Dragon wrote:

(Sometimes [my] brevity is too brief and needs debriefing.)

ok

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Replying to Tax Dragon:
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By marlin
06th Jul 2021 11:00

Several reasons, HMRC have sent notification to file, they have UK salary.
HMRC have estimated tax for 2020-21 ( could be corrected without a tax return but would be a pain)

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Replying to marlin:
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By AndyC555
06th Jul 2021 12:07

"they have UK salary"

Doesn't necessarily mean they are liable to tax in the UK.

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Replying to marlin:
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By Tax Dragon
06th Jul 2021 14:39

I'm not even sure what "UK salary" means. The question for UK tax purposes is: where are the duties or services performed?

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By Wanderer
06th Jul 2021 12:09

Why are you bothering with form R43?

Surely if they are non-res, if appropriate, you claim the PA on page RR 2 of the SA return?

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By AndyC555
06th Jul 2021 12:15

If they are not UK resident but are on a payroll, why not obtain an 'NT' code?

I would have thought personal allowances superfluous. There's no liability to UK tax.

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By Matrix
06th Jul 2021 13:11

Have you checked the residence of the company? And the treaty to see where all the sources are taxable?

It sounds pretty complicated and the clients won’t like paying two sets of fees, let alone two sets of taxes, so there really isn’t much in it for you.

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