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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I moved over to the UK from Ireland in August 2014 and

Customer Question

Hi,
I moved over to the UK from Ireland in August 2014 and started work here on 01/09/2014.
I was put on tax table 760L Month 1. I earned £42812.50 and paid £11,469.97 in tax.
Previous to that I worked in Ireland until 30/06/2014. There I earned €50,000 between 01/01/2014 and 30/06/2014 and paid €5565.96 in tax. I paid €4,800 per month maintenance to my ex wife based on our court ordered divorce settlement. This was tax deductable in Ireland as a personal allowance.
I figure I am due a refund of UK tax but am not sure how to calculate the amount. Can you please tell me what the repayment amount should be.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
To get tax relief on such maintenance payments in the UK one or other of the parties must have been born before 6 April 1935.
You have been resident in the UK over 183 days in the tax year you become liable to UK taxation on your world wide income. However under the Double Taxation Convention between the UK and Ireland any tax paid in one jurisdiction is allowable as a tax credit against any liability in the other country.
Your UK Income was 42812. Deduct your Personal Allowance, available to all EEA citizens, of 10K leaves you with 32812 taxable. The first 32010 are taxed at 20% (6402) leaving 802 taxable at 40% (321), total tax due 6723. You will be entitled to a refund and this will come back automatically when you make your self assessment tax return for 14/15. Alternatively, if your employer makes a return of wages paid and tax deducted to HMRC which must have been done by yesterday, it may well trigger a refund automatically, but don't bank on it! I would advise you to self assess.
I am so sorry to have to rain on your parade.
Customer: replied 2 years ago.

Hi Keith,

Thank you for your response.

I am not sure if you have rained on my parade as it would seem I am due a refund of almost £5K as I was on a month 1 basis since I started work in September.

Will the income and tax paid in Ireland between Jan 2014 and June 2014 be taken into consideration when calculating my tax refund in the UK?

In my case I earned €50,000 and paid €5565.96 tax on this income.The income and tax accrued evenly over the 6 months. Or is this income ignored and I will get a refund of the difference between the tax paid £11,469.97 and the tax due above(£6723) for the period I was in the UK?

Regards

John

Expert:  bigduckontax replied 2 years ago.
Please delete my comment about the rain, my mistake!
As you have arrived in the UK from residence in Ireland then your arrival tax year would be split into two portions, one non resident and one resident. Thus your Irish earnings would not come into the equation at all.
Please be so kind as to rate me before you leave the Just Answer site.
Customer: replied 2 years ago.

Thank you Keith.

Therefore I would be entitled to a repayment of the tax overpaid which is the difference between the amount you calculated on my UK earnings above and and what I actually paid on my UK earnings?

So I am entitled to a full years Tax fee allowance of £10K and not £5k as I

got on a month 1 basis?

Regards

John

Expert:  bigduckontax replied 2 years ago.
The Month 1 basis merely tells an employer to deduct tax month by month taking no account of earlier months' remuneration or deductions. The normal cumulative PAYE system does not operate when a M1 code is issued.
You should indeed be entitled to a refund of over paid tax of the order of GBP 4747.
Please check your 15/16 tax code to ensure that it is correct, 1060L is the norm. If it is not then take it up with the HMRC office who issued it, but do this in writing.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3612
Experience: FCCA FCMA CGMA ACIS
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Customer: replied 2 years ago.

Ok Keith, Thank you.

I will submit my request as soon as I get my P60.

I just hope I am allowed the TFA for the full year and not just for the period I was in the country.

Regards

John

Customer: replied 2 years ago.

I am going to rate your service as excellent.

Expert:  bigduckontax replied 2 years ago.

You should be John, it is not abated for a mid year arrival.

With my pedants hat on you should already have your P60; your employer is required to provide it by 19 May!

Thank you for your support.

Regards

Keith

Customer: replied 2 years ago.

Smile I was available today but I didn't collect it.

Thank you

Good luck.

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance.

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