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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6302
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I think I have to do my UK tax return for April 2018-2019

Customer Question

Hi I think I have to do my UK tax return for April 2018-2019 I've worked in Germany and already taxed my income there but also had a very small UK income of self-employment
JA: Are you filing as a sole proprietor or independent contractor?
Customer: sole trader
JA: Anything else you want the Accountant to know before I connect you?
Customer: Yeah, I'm just really confused as to if I have to file a tax return and how I should do it and what I have to look out for. I already got advice from an accountant, who said I wouldnt have to tax my german income here as well, but now I'm afraid that isnt true
Submitted: 10 days ago.
Category: Tax
Expert:  taxadvisor.uk replied 10 days ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Customer: replied 10 days ago.
So the situation is that I'm afraid that I have to tax my German income AGAIN in the UK now. I've been registered as a resident in Germany during the tax years of April 2018-2019, and worked in Germany and taxed that income there as well. However, I also had a boyfriend in the UK so also spent some time in the UK and had a small income from a website project (1250 £ )
Customer: replied 10 days ago.
And had been registered as soletrader for that in the UK
Customer: replied 10 days ago.
where I was building my business. For this tax year now I went fully self employed and deregistered in Germany to be a full resident here in the UK
Customer: replied 10 days ago.
Now I'm scared that I have to tax my German income (around 24k £ for the year) again now that I do my self assessment tax return
Customer: replied 10 days ago.
Which might be 5-10k I guess?!
Customer: replied 10 days ago.
Last year in April I paid an accountant in the UK to advice me and she told me I was all ok because of the double tax treaty. But now I researched and it doesn't seem to be that clear and easy at all :(
Customer: replied 10 days ago.
Like I might still have to pay the tax and then I can only claim it back afterwards and then I might still have to pay it
Customer: replied 10 days ago.
So now I basically don't know how to do my tax return. Should I just claim to be a non resident, as I was registered and working in Germany, and do a tax return only for the 1250 £ I earned that year?
Expert:  taxadvisor.uk replied 10 days ago.

Thank you for your question.

If you were UK resident for tax purposes in tax year 2018-19, then you are taxed on your worldwide income on arising basis and you should report all income to HMRC. You claim foreign tax credit relief for tax suffered in Germany against your UK tax payable under double taxation agreement between the two countries.

Foreign tax paid is shown under Foreign section of the tax return.

More information on this can be found here

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/787470/SA106_notes_2019.pdf

My aim is to give you a professional service. I hope this is helpful and answers your question.

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Expert:  taxadvisor.uk replied 8 days ago.

Hi there

Just checking to see if you need further clarification/information or I have answered your question.
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