So, if an employer is required to issue a P60 to an employee who has been given relief in this way it should show the taxable pay but only the net figure of UK tax deducted after the foreign tax has been offset. On a day to day basis the employer will need to use the “deductions from net pay” data item (Data Item 58B) to take account of the foreign tax to ensure that the FPS net pay equates to that actual paid in the same manner as other deductions. Using our example above of pay of £2000, UK tax due £500 less FTCR £300.
Incorrect report: Gross Pay Tax deducted
£2000
£ 200 Pay after statutory deductions £1800 (Incorrect result)
Correct report: Gross pay Tax deducted
£2000 £ 200 £ 300
Deductions from Net Pay (58B)
Amount for BACS Hash
£1500 (Correct result)
If the data item values are incorrectly reported or an adjustment is not made in respect of foreign tax paid, then the amount the employer reports will not match the amount they pay to HMRC and this may give rise to debt recovery action by HMRC. Additionally the tax calculations for the seconded employees could also be incorrect giving rise to demands for payment or the repayment of tax.
Tax Residence Indicator
17 December 2014
The final version of the Tax Residence Indicator for individuals has been released by HMRC.
The Statutory Residence Test (SRT) came into effect from 6 April 2013 and applies from 2013-14 onwards. 'Split year' treatment may apply if, during the tax year, a UK resident starts to live or work abroad or comes from abroad to live or work in the UK.
The tax year will be split into two parts depending on certain residence conditions.
This final version of the residence tool can determine if any of the 8 split year cases in the Statutory Residence Test apply. It also allows you to work out the residence status of someone who dies in the tax year. CIPP comment CIPP are represented at the Expat Forum and would value any feedback that members would care to share on their experience of using the Tax Residence Indicator. Please send comments to policy .
UK and Croatia Double Taxation Agreement
21 January 2015
A first time comprehensive Double Taxation Agreement between the UK and Croatia was signed in Zagreb on 15 January 2015.
CIPP Policy News Journal
08/04/2015, Page 257 of 521
Made with FlippingBook - Online magazine maker