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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5029
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am a Portuguese illustrator living and working from

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Hello, I am a Portuguese illustrator living and working from Portugal and I am going to be paid 150GBP by a UK publisher for making one illustration for them. Am I subject to UK taxation and/or do I need to claim double tax relief? Thank you.
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your question.If you are working from Portugal and invoice your customer in the UK for work done, he should be able to pay your business a gross payment without deduction of tax. You would declare that income to the tax authorities in your country and pay local taxes. I hope this is helpful and answers your question.
Customer: replied 2 years ago.
Thank you. But even so, isn't there the need to invoke the UK-PT double taxation agreement (article 14) so that what you described can happen? In the case of royalties, I think there is the need to claim double taxation relief to HMRC. Why the difference in treatment?
Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.Payment for personal services or other independent activities are dealt with differently from payment of royalties as far as deduction of tax at source is concerned.Income derived from professional services rendered in Portugal shall be taxable only in that state unless you have a base in the UK to render those activities. This is covered herehttp://www.hmrc.gov.uk/manuals/dtmanual/DT15663.htm Tax treatment of payment of royalties is covered here https://www.gov.uk/guidance/double-taxation-relief-royalties-and-interest-paid-to-overseas-companies I hope this is helpful and answers your question.If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it by Just Answer.
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Expert:  taxadvisor.uk replied 2 years ago.
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