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Will I owe tax here on Personal earnings from another EU country?

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    Will I owe tax here on Personal earnings from another EU country?

    First time ever moving to UK (never earned or worked here). Have started a contract with insurance company in March and have now set up a ltd etc.

    As I 'became a director' in the UK in the tax year April 14 - April 15 it is my understanding I will have to complete a self assessment tax form for that tax year. Also, taking tests online, it seems I am considered to be tax resident in the UK in that year (was in country for 90 days, although will not take a wage as per accountants advice).

    In the time period April 14 - Dec 14 I worked in Rotterdam, Netherlands. Earned about €80k in this period. There is a 30% tax relief for expats there.
    My question is, now that I am considered tax resident for this period in UK can it be possible I will owe tax for that period here? (even though none of the work was done in the UK and I was never in the UK in that period).

    I understand there is a tax treaty but that only avoids you paying 'double tax' as far as I understand. Can it be the case that I owe the UK some extra tax if their effective tax rate is higher here?

    #2
    Yep.
    "You’re just a bad memory who doesn’t know when to go away" JR

    Comment


      #3
      No, you're not liable for tax for the time before you moved to the UK.

      https://www.gov.uk/tax-foreign-income/residence

      When you move in or out of the UK, the tax year is usually split into 2 - a non-resident part and a resident part. This means you only pay UK tax on foreign income based on the time you were living here. This is called ‘split-year treatment’.
      I'm alright Jack

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