Reply to: TTP for non residents

[TSMRTZ]

Do you know if the HMRC were successful in the collection of the APN?

[GoneSurfing]

Hi, does this mean the ATO won't collect the tax on behalf of the HMRC?

There are at least two examples of HMRC trying to collect an APN via ATO.

[TSMRTZ]

Hi, does this mean the ATO won't collect the tax on behalf of the HMRC?

I did have some advice that if the tax laws of the two countries do not align then it makes it hard for the HMRC to collect the outstanding debt?

Is it possible the HMRC could on-sell the debt to an international debt collector?

[OzBased]

Hi,

My wife worked in the UK under one of these schemes from 2009-11. After getting the HMRC letter in late June I contacted the ATO to ask if they would collect tax on behalf of another country - the operator I spoke to claimed they had no knowledge of this ever happening (this may be incorrect as they were a phone operative, although I was left hanging for a while whilst they asked a manager). I have also emailed the HMRC numerous times asking them to clarify their jurisdictional rights over commonwealth countries, as of today I haven't received an answer.

We have been speaking with Phil at DSW and one of the options we are exploring is declaring bankruptcy in the UK.

I spoke with ATO Early Engagement team who directed me to the Cross Border Recovery rules. These highlight if there is any dispute you need to argue it in the country where the tax originated (i.e the UK in this instance).

[Bunnyfuture]

Uk

Thanks

[Bunnyfuture]

Can I ask what type of affect this will have on Oz surely this means you severely affected in terms of credit and the ability to work in the finance sector? Cheers

I have no idea actually, I am not really considering that as an option myself however I do know when you move here there is nothing of much relevance related back to the UK
e.g getting a credit card is based on Visa status
you have no credit score in oz when you move you have to effectively start again.

They do international police checks but not sure if being bankrupt would show up as a criminal record

[Endofdays]

Its an option i spoke to my accountant yday
he said you can
- wait till april
- fight it legally
- register

my issue with bankrupcy is I have property in the UK so I would stand to loose that completely I guess.
i heard Abbey tax are good but I am just speaking to my accountant about it at the moment

Can I ask what type of affect this will have on Oz surely this means you severely affected in terms of credit and the ability to work in the finance sector? Cheers

[Endofdays]

also can you advise DSW is in Oz or UK

thanks

Uk

[Bunnyfuture]

Hi,

My wife worked in the UK under one of these schemes from 2009-11. After getting the HMRC letter in late June I contacted the ATO to ask if they would collect tax on behalf of another country - the operator I spoke to claimed they had no knowledge of this ever happening (this may be incorrect as they were a phone operative, although I was left hanging for a while whilst they asked a manager). I have also emailed the HMRC numerous times asking them to clarify their jurisdictional rights over commonwealth countries, as of today I haven't received an answer.

We have been speaking with Phil at DSW and one of the options we are exploring is declaring bankruptcy in the UK.

also can you advise DSW is in Oz or UK

thanks

[Bunnyfuture]

Hi,

My wife worked in the UK under one of these schemes from 2009-11. After getting the HMRC letter in late June I contacted the ATO to ask if they would collect tax on behalf of another country - the operator I spoke to claimed they had no knowledge of this ever happening (this may be incorrect as they were a phone operative, although I was left hanging for a while whilst they asked a manager). I have also emailed the HMRC numerous times asking them to clarify their jurisdictional rights over commonwealth countries, as of today I haven't received an answer.

We have been speaking with Phil at DSW and one of the options we are exploring is declaring bankruptcy in the UK.

Its an option i spoke to my accountant yday
he said you can
- wait till april
- fight it legally
- register

my issue with bankrupcy is I have property in the UK so I would stand to loose that completely I guess.
i heard Abbey tax are good but I am just speaking to my accountant about it at the moment

[TSMRTZ]

Hi,

My wife worked in the UK under one of these schemes from 2009-11. After getting the HMRC letter in late June I contacted the ATO to ask if they would collect tax on behalf of another country - the operator I spoke to claimed they had no knowledge of this ever happening (this may be incorrect as they were a phone operative, although I was left hanging for a while whilst they asked a manager). I have also emailed the HMRC numerous times asking them to clarify their jurisdictional rights over commonwealth countries, as of today I haven't received an answer.

We have been speaking with Phil at DSW and one of the options we are exploring is declaring bankruptcy in the UK.

[NotAllThere]

When I left the UK I owed a small amount to HMRC that they'd previously been collecting through the tax code. There was no way they could claim that through the Swiss tax authorities. The offsetting only works with your tax bill on your current return.

I paid them eventually and never heard from them again. Which was nice.

[Bunnyfuture]

Sting

If you have a debt with HMRC and live in abroad-land which has a dual taxation treaty, then when you settle that debt, depending on how it arose, it may offset your tax bill in your host country. If you don't settle it, it won't be added to your home country taxes. They don't care.

I doubt the loan charge will be offsettable against abroad-land taxes.

I got the letter two weeks ago and I live in Australia, its dual treaty. I also completed an inquiry some years ago for years within the new inquiry.
I think I still show up on their records because I have a property in the UK....and still fill out a tax return on that basis.
I agree I cannot see how it will be off set. Additionally I have absolutely no information pertaining to those year because i believed everything was concluded in the UK. Passed it to my accountant in the UK and see what happens. Double stressful with all the time distance issues waiting to hear back.

[NotAllThere]

So basically settle or face the wrath or 2 tax authorities. GREAT.

If you have a debt with HMRC and live in abroad-land which has a dual taxation treaty, then when you settle that debt, depending on how it arose, it may offset your tax bill in your host country. If you don't settle it, it won't be added to your home country taxes. They don't care.

I doubt the loan charge will be offsettable against abroad-land taxes.

[Endofdays]

So basically settle or face the wrath or 2 tax authorities. GREAT.

Also with Iht if these is a tax event as the result of settling don't you have to report this to your local tax authority who the. Do you pay?