Member Since: 3rd Oct 2002
24th Nov 2016
If you do not complete a US Return to get the US tax refunded then the whole of the withholding tax will be available for a DTR claim. But the DTR allowable is restricted to the UK tax liability on the profit attributable to the US earnings - you should not deduct the US tax in full without first calculating the UK tax bill on this part of the profit.
As the US rate is usually 30% the DTR claim is likely to be less than the full amount.
22nd Nov 2016
I have had clients in this situation. I could not see how to avoid the withholding tax but so long as the client has got an ITIN you can prepare a US Tax Return as a non-resident alien (so US earnings only) and get a refund. This obviously reduced the Double Tax Relief in the UK but is worthwhile as the withholding rate was 30%.
31st Oct 2016
Thanks again everyone. I thought I had this sorted but clearly not.
31st Oct 2016
The client is not buying plot C again.
He is only shaving off a bit of his own home's garden to add to the adjacent plot A that he has bought. He will then sell the combined plot (A+C) to a builder.
I don't really see this as trading - he's not trying to make a living at this just a quick buck for retirement.
28th Oct 2016
Thank you both - I had not thought about this as being trading. As an isolated transaction unrelated to the client's business I would think that CGT is more appropriate than IT but I can see that it could be viewed differently.
13th Oct 2016
Thanks for the response. I don't file on paper but nonetheless the actual HMRC form does not allow you to enter pence but only whole pounds.
I agree with your point that it should always be rounded down. Perhaps that is why HMRC are substituting a corrected figure. I will mention it to the software provider.
12th Oct 2016
If you look at the Tax Return you will see the pence boxes for SLR are greyed out - so I think my software provider is correct in giving the figure as pounds only.
It rounds up over 50p and vice versa.
20th Sep 2016
The NIC Office is issuing bills where clients have applied for A1/E101 in 2015/16. This seems to have caused the problem. They say they are trying to solve the issue but in the meantime recommend a separate payment on 31 Jan 2017. You will see on the HMRC online account for these clients that Class 2 NIC is shown as £0 and you will get SA302s removing the Class 2 when you submit the Returns!
21st Apr 2016
Just tried and the system is unavailable for me too.
8th Mar 2016
After the court cases for Dr Samadian and Dr Jones would we not need to look at whether the actor is travelling to the flat on a regular and predictable basis? If the actor is in a play for 7 months they are probably not doing much else for the duration so there is unlikely to be much else by way of travel expenses.