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Posted Wed, 29 May 2024 16:29:23 GMT by Yvette Gatenby
Hi I live in Spain but work in the Uk . I’ve just completed my anual tax return in Spain and they have advised I must pay tax on my Uk income in Spain even though I’ve paid tax on my Uk income at source is this correct that I pay in both countries on the same income ? I do know the personal tax free amount in Spain is much less than the Uk so not sure if this is why ? Thanks
Posted Tue, 04 Jun 2024 08:33:33 GMT by HMRC Admin 5 Response
Hi 

Please refer to article 14 - Income from employment, of the UK / Spain tax treaty.  
It can be found at 2014 UK-Spain Double Taxation Convention
It states is you are resident in Spain, then UK employment is taxable only in Spain, unless you were physically in the UK undertaking the work.  
In that case, the UK has the right to tax your employment income.  
If you are not taxable on this employment income, you will need to submit a P85 (Get your Income Tax right if you're leaving the UK (P85))
to report that you are not resident in the UK and that you have a UK employment.

Thank you
Posted Tue, 04 Jun 2024 10:28:55 GMT by Yvette Gatenby
Thank you for your reply I’ve looked at article 14 . So I am a Spanish resident under the withdrawal agreement and hold a TIE card . My main address is in Spain . I do not own or rent any property in the Uk . My income does come from the Uk from work undertaken in the Uk . I’m not sure on how many days I’m am in the Uk in any one year as my shifts differ from time to time . So I’m still struggling on where I should pay my tax as this year I am paying in both countries
Posted Thu, 06 Jun 2024 13:20:56 GMT by HMRC Admin 19 Response
Hi,

You will need to consider seeking professional advice on this matter as we cannot make the decision for you.

Thank you.
Posted Thu, 06 Jun 2024 18:14:21 GMT by Yvette Gatenby
Does that mean then that I can continue to pay in both countries with out breaking any rules / laws ? Many thanks
Posted Fri, 07 Jun 2024 16:53:16 GMT by HMRC Admin 20 Response
Hi,
If you are in the UK when carrying out this work for a UK employer, then this portion of your income will be taxable in the UK.  
If 100% of the work for the UK employer is carried out in Spain or any other country outside of the UK, then the employment income is not taxable in the UK.
Thank you.
Posted Thu, 27 Jun 2024 14:14:15 GMT by Yvette Gatenby
I have never completed a P85 form should this be considered and if so would I then pay non residents tax on the Uk income ? I just don’t understand how I am paying both tax in the Uk and in Spain on the same income . If the P85 is completed is it correct the tax would be refunded from the Uk ? And would this be for the last four years where I have paid in both countries . Many thanks
Posted Wed, 03 Jul 2024 09:38:15 GMT by HMRC Admin 21 Response
Hi Yvette,
Please refer to guidance at Tax on your UK income if you live abroad.
Thank you.

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