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Sam
Sam, Accountant
Category: Tax
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Sam, Just to clarify the treatment of USA social security

Resolved Question:

Sam,
Just to clarify the treatment of USA social security taxes. Your previous answer to me indicated that I could use these taxes as a tax credit against UK income taxes on the earned income, which is very favorable to me. My previous practice was conservative as I classified these taxes as an expense against the earned income.
So, are USA social security taxes a tax credit, an expense, or not to be claimed at all? Note that I do not pay national insurance on these earnings as per an earlier determination by HRMC.
Regards,
Lee Moore
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi
Thanks for your further question
If you claim the tax as an expense - then you are reducing the amount of the UK tax to be considered only against the net income, whereas the UK tax position will consider - what UK tax arises, and then deduct the USA tax suffered.
So you would declare the gross income position AND show the USA tax suffered (its not an expense)
Thanks
Sam
Customer: replied 3 years ago.

Sam -

Very good. Question, as this determination is favorable to me, can I re-file for 2012-13 as well as for current year 2013-14?

Also, due to accounting changes on my USA income, I need to re-file for years back to 2010-11. The income in question was accounted for in a different year according to USA tax law. What is the procedure for refilling for years back to 2010-11?

Also, to obtain an answer about classification of depletion allowances against mineral income, what is required by Just Answer? I realize that this would be a very specialized subject.

Thanks,

Lee Moore

Expert:  Sam replied 3 years ago.
Hi Lee
You will have to ask for HMRC to amend your 2012/2013 return (Unless you filed this online, then you can amend this through the online services) and then advise this on the 2013/2014 return.
You may need to ask HMRC to issue you with the 2010/2011 self assessment - as this will not be available to file online.
I am due to meet with a client, I shall try and see what I can find out about mineral depletion relief
Thanks
Sam
Customer: replied 3 years ago.

Sam -

I appreciate your advice on these matters, but I intend to keep this thread open until you are able to provide an opinion regarding depletion allowance on mineral royalty income (actually oil & gas royalty income). Possibly there is something in the North Sea oil taxation regulations.

If your answer is that you could not find an answer, let me know and I will provide a rating and close this thread.

Also, are you able to suggest a tax accountant near Woking Surrey, or is there a referral service that you know about. Do you review documents or calculations?

Thanks,

Lee Moore

Expert:  Sam replied 3 years ago.
Hi lee
Apologies for my delay in responding to you.
Having trawled through the business income manual, it would appear we have no such relief here in the UK, there are costs allowed prior to mining (opening costs) and after (restoration) but other then the actual expenditure incurred on the working of the mine, no deductions for depletion.
This seems re4levent to the USA in the main but certainly not, it would appear, the UK.
But I would advise writing to HMRC c/o of the Technical team - let me know if you need their address - and they can provide clarification of that position.
I am afraid we are not permitted to take on one to one clients as a result of our affiliation with Just Answer, but as long as the accountants in your area have sufficient knowledge of foreign income and specifically your incomes, then any of the main accountants in your area can provide an excellent service.
If you chose a chartered certified accountant, then they will also be governed by a body or organisation, which protects the work they do for you.
Thanks
Sam
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