Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello Ines, I'm Keith and happy to help you with your question.
Assuming that the overseas country has a Double Taxation Treaty with the UK then any taxes paid to that country are allowed as a tax credit against any UK taxation levied on the same income stream. These treaties, and there are hundreds of them, do not protect you from differences in rates of tax.
You should approach your tax office with a view to amending the return for the relevant year. As probably there is no or minimal tax due no one is going to get unduly worried over this sort of error. You may be charged interest on outstanding tax, but that is perfectly normal. After all HMRC will pay you interest on delayed moneys due to you.
I do hope I have been able to set your mind at rest on this matter.
Just one more question. I understand that there may be differences in tax rates from the origin of the trust and the UK (with regards ***** ***** tax treaty) and tax may be owed.
As the money went to my failing company, and not to me, would I still have to pay tax or would that be waived as the tax would have become the responsibility of the company?
Thank you so much for your help!!
The wording of your original question was 'I received funds...' The fact that you subsequently paid those funds into your company is, regrettably, irrelevant. It is your money sunk and lost. The funds would have been taxable in your hands, but it would be normal for a trust to pay tax before distribution.
Cool, that clarifies that.
Thanks again so much for all the advice you have given me.
All the very best