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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Situation:My salary is taxed at source in Germany

Resolved Question:

Hello,
Situation:
My salary is taxed at source in Germany currently and I am considered a german resident.
However I am a UK non-resident landlord and taxed as such also in the UK. I qualify as non resident spending less than 90 days in the UK a year and having only one tie (property). I get about £17,000 in income and can only offset a small amount against expenses. Only the interest on the mortgage, not the whole mortgage plus any repairs. I get my full personal allowance before tax is taken off, so its not too bad - tax bill is around £900/ year. So the house pays for itself an i can keep it.
However, a problem may start because: I spend a lot of time working from one address in the UK/ I spend more than 90 days in the UK depending on how they are measured. Apparently this can vary.
I am also not sure I should not be declaring UK income in Germany but that is an existing problem...
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Thanks for your question - I can advise the UK tax position, but we are just UK tax experts and not German so you would need to seek further advise on your German position, Would you like to proceed?If so please advise why it may be that you spend more than 90 days in the UK, how long you have been NOT resident in the UK and whether any of your work (now and in the time to come) is actually performed in the UK And why you may exceed 90 days "depending on how its measured" please expand on this statement Thanks Sam
Customer: replied 1 year ago.
Hello, yes please I would like to proceed

I will have to work in the UK office sometimes, even though on a german contract and home based in dusseldorf. Its likely I will visit the UK for less than 20 days for personal reasons but may go over 90 days with work, but its not sure and there might be some flexibility with my work. Right now not more than 5 days a year is worked in UK.

I have been non resident just over 3 years
Expert:  Sam replied 1 year ago.
Hi Then the work undertaken in the UK should form a UK tax position and you should therefore be declaring all of this German income (and more specifically the days you work in the UK) on your self assessment tax return.(if this was just for meetings and/or training days then no UK consideration) Link for the table determining what becomes liable from this kind of arrangement http://www.hmrc.gov.uk/manuals/rdrmmanual/rdrm10425.htm You can see that Domiciled outside UK and also Not Resident for which you are - That duties performed in the UK are libale to UK tax - so say you worked 52 out of a possible 322 work days in the UK - then in essence 52/322 would be liable to UK tax (but any German tax suffered would also be considered as a credit against the UK tax position) Let me know if I can assist further ThanksSam
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