Income tax position when returning to the UK
Dec 28th 2016, 9:08 am
#1
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Income tax position when returning to the UK
What is the correct procedure if you officially return to the UK mid Spanish tax year?
Do you continue to tax to Spain until the year end?
Does the 183 day rule play a part?
Do you have to come back to fill in a tax return to Dec31 or do you stop paying Spain the day you leave and immediately from that day start paying income tax etc to HMRC? I have read many conflicting items on this.
Do you continue to tax to Spain until the year end?
Does the 183 day rule play a part?
Do you have to come back to fill in a tax return to Dec31 or do you stop paying Spain the day you leave and immediately from that day start paying income tax etc to HMRC? I have read many conflicting items on this.
Dec 28th 2016, 10:16 am
#2
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Re: Income tax position when returning to the UK
All I know is that Spain don't do part year tax returns - it's all or nothing.
The 183 day rule just decides when you become tax resident. However, if you aren't in Spain for 183 days in a particular year, then you may not need to complete a return for that year. However, you may have to baja first.
Probably best to ask HMRC what they think.
The 183 day rule just decides when you become tax resident. However, if you aren't in Spain for 183 days in a particular year, then you may not need to complete a return for that year. However, you may have to baja first.
Probably best to ask HMRC what they think.
Dec 28th 2016, 10:43 am
#3
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Re: Income tax position when returning to the UK
If you leave Spain before you reach 183 days, you are not tax resident for the whole of that year, so you pay no tax, even on your income for period before you left.
You will only pay UK tax from the day you arrive in the UK, so there is a tax saving here.
If you exceed the 183 days you pay tax for the entire year, and also for the period in the but UK you won't pay the tax twice on the same income as you can deduct the UK tax from the Spanish tax when that becomes due.
As Snikpoh said, make sure you correctly submit a "Baja" to the tax office in Spain before you leave, especially if you are leaving before the 183 days are up.
You will only pay UK tax from the day you arrive in the UK, so there is a tax saving here.
If you exceed the 183 days you pay tax for the entire year, and also for the period in the but UK you won't pay the tax twice on the same income as you can deduct the UK tax from the Spanish tax when that becomes due.
As Snikpoh said, make sure you correctly submit a "Baja" to the tax office in Spain before you leave, especially if you are leaving before the 183 days are up.
Dec 28th 2016, 11:23 am
#4
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Re: Income tax position when returning to the UK
You may be lucky and accept your Baja application (modelo 030), however generally they may ask you for Certificate of Fiscal Residence from the UK.
Jan 9th 2017, 12:45 pm
#5
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Re: Income tax position when returning to the UK
The 183 day rule is a bit of a mute point as the residency rules changed in the UK as of April 2013. It's also dependent on your circumstances and when you break Spain treaty residence under the double tax treaty. Wby are you returning to the UK? is it to start full time employment in the UK?
Jan 9th 2017, 1:15 pm
#6
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Re: Income tax position when returning to the UK
The rules have changed in the UK, but the 183 day rule still applies in Spain.
