Sorry boring tax question

[DROOBY]

Alrighty peeps. Heading back to blighty shortly for 3 months working as a catering manager on the festival scene. I will be employed by a British company but as i am resident in Spain not sure how I will be taxed. Anyone any ideas? tried googleing but not getting very far. Just stuff like paying NI and such like.

Thank you very muchly

P.S ITS STILL RAINING

[almendros]

Originally Posted by DROOBY

Alrighty peeps. Heading back to blighty shortly for 3 months working as a catering manager on the festival scene. I will be employed by a British company but as i am resident in Spain not sure how I will be taxed. Anyone any ideas? tried googleing but not getting very far. Just stuff like paying NI and such like.

Thank you very muchly

P.S ITS STILL RAINING

If you earn any money in the UK it will be taxed in the UK irrespective of your normal tax residency.

You will also have to declare the income on your Spanish tax declaration as that covers your world wide income.

You can deduct the tax paid in the UK from your Spanish tax bill.

[DROOBY]

Originally Posted by almendros

If you earn any money in the UK it will be taxed in the UK irrespective of your normal tax residency.

You will also have to declare the income on your Spanish tax declaration as that covers your world wide income.

You can deduct the tax paid in the UK from your Spanish tax bill.

Cheers Almendros,

Do you know if that means i will be double taxed?

Thanks again

D

[Stravinsky]

Originally Posted by DROOBY

Cheers Almendros,

Do you know if that means i will be double taxed?

Thanks again

D

I appreciate what almendros is saying, but you need to take proper advice. As a Spanish resident your worldwide income is taxed in Spain, although there are the odd exceptions. There will be no double taxation as there is a treaty.

For instance I have UK income, but it is taxed here. I am zero registered in the UK

[almendros]

Originally Posted by Stravinsky

For instance I have UK income, but it is taxed here. I am zero registered in the UK

Yes, but that is probably because it is pension income which can be paid free of UK tax.

Income from work in the UK will always be taxed in the UK.

The double taxation treaty does not actually apply specifically in this case but normal tax rules allow you to reclaim tax paid in the UK from tax paid in Spain on the same income.

[nina874]

Originally Posted by DROOBY

Alrighty peeps. Heading back to blighty shortly for 3 months working as a catering manager on the festival scene. I will be employed by a British company but as i am resident in Spain not sure how I will be taxed. Anyone any ideas? tried googleing but not getting very far. Just stuff like paying NI and such like.

Thank you very muchly

P.S ITS STILL RAINING

I dont know the answer to the question, but it is nowhere near as boring as some of the tax questions that I posted!

[Stravinsky]

Originally Posted by almendros

Yes, but that is probably because it is pension income which can be paid free of UK tax.

Income from work in the UK will always be taxed in the UK.

The double taxation treaty does not actually apply specifically in this case but normal tax rules allow you to reclaim tax paid in the UK from tax paid in Spain on the same income.

No, its not pension income.

Income from work in the UK is definately not always taxed in the UK. Sorry, its simply not the case. Go and see the hacienda if you're not sure . As a Spanish resident & tax resident your worldwide income is taxed in your country of residence. As I said, there are the odd exceptions but in general this is always the case.

This has been discussed on so many different occasions on so many different forums and with the benefit of DWP and tax advice.

[almendros]

Originally Posted by Stravinsky

No, its not pension income.

Income from work in the UK is definately not always taxed in the UK. Sorry, its simply not the case. Go and see the hacienda if you're not sure . As a Spanish resident & tax resident your worldwide income is taxed in your country of residence. As I said, there are the odd exceptions but in general this is always the case.

This has been discussed on so many different occasions on so many different forums and with the benefit of DWP and tax advice.

I am not suggesting that you have any choice in where you pay your tax (which as you point out has been discussed regularly) but it is perfectly possible to have to pay it in both countries.

It depends on the type of income but the OP is talking about working as a non resident in the UK for a UK company.

This is what HMRC say about it in their latest booklet on residency.

10.4.1 Earnings you receive from an employer
Although you are not resident in the UK you will still pay UK tax on any
employment duties which you carry out in the UK unless those UK duties
are 'incidental' to an employment abroad – see 10.6.

As I originally said you will also pay Spanish tax on it (as it is part of your world wide income) and reclaim the UK tax.

[Stravinsky]

Well .... fair comment, you suggest what you see fit
I'll just stick with the professional advice I had from accountants, tax advisors etc in both countries

[jojo]

I'm probably totally out of context here, but my husbands accountant has told him that if he spends more than 183 days in spain then that is where his tax liabilities will be !???

Jo xxx