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Sam
Sam, Accountant
Category: Tax
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I moved to the UK from Germany in December 2015. I (will)

Resolved Question:

Hi, I moved to the UK from Germany in December 2015. I (will) receive patent royalty payments from my previous employer (a German company) in October for their financial year which runs from October to September. While I was employed the royalties were simply added to my monthly salary. Now I will write a bill and this will be paid.
My first question: effectively half of the income was earned in the last financial year, what counts, when it is earned or when it is paid?
Second question: will the company be required to deduct any tax, or do they pay the full amount and I declare it on my next tax return?
Thanks
Rainer
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi Rainner

Thanks for your question - I am Sam and I am one of the UK tax experts

For UK tax purposes when it was paid (as employment related)

I imagine your German company will have to deduct tax - but if they do you, then you declare the income and the tax deducted on the foreign income page to HMRC and if hey do not deduct tax hen you just declare the income

(The German employer can advsie on this, as we are UK tax experts not Herman tax experts!)

Let me know if I can assist further

Thanks

Sam

Customer: replied 1 year ago.
Hi Sam,
thanks for the reply, it has already helped .What do you mean by employment related? I would think it isn't employment related. The patent license contract has nothing to do with being employed at the company.Thanks
Rainer
Expert:  Sam replied 1 year ago.

HI Rainer

Thanks for your response

You advise

my previous employer (a German company) in October for their financial year which runs from October to September. While I was employed the royalties were simply added to my monthly salary. This is employment related

However even if it is not, then the tax will arise the date the invoice is raised (again not from when it might be earned from) and again any tax you suffer you claim on the foreign income page of your self assessment tax return for HMRC

Thanks

Sam

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