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Posted Mon, 06 Nov 2023 22:10:10 GMT by
Hi all, after two years full-time employment in the UK post-university, German national recently returned to start full-time work in Germany, and is wondering how to correctly file taxes going forward. All future employment income will be taxed at source in Germany. Due to more than 91 days spent in the UK going forward (likely around 110-120 incl. home accessible to them as partner still lives in the UK, works on more than 31 days from the UK, hence not meeting the automatic overseas tests), I am assuming that they will be classed as dual resident (more than 183 days in Germany). 1) Am I correct in assuming that they can claim full relief under DTA for (their already taxed at source) German income using SA106? 2) Would they be considered eligible for split year treatment (I am thinking no, due to dual resident status) ? What would happend to the split year treatment if they returned to the UK (settled status under EU Settlement Scheme) before having spent a full next tax year in Germany and what would be the financial implications? As their earnings should fall under the DTA (and taxed are generally higher in Germany) I would assume that there would be no negative implications? 3) Would there be any difference if they transferred some of their German earnings into a UK bank account ("remit") while being considered dual-resident? Many thanks for the clarifications!
Posted Thu, 09 Nov 2023 14:41:43 GMT by HMRC Admin 19

If you qualify for split year then you only report any foreign income for the UK part of the year. You can see guidance here:

RDRM12000 - Residence: The SRT: Split year treatment

If you do not qualify then you will need to report all your foreign income to the UK. You can see guidance below:

Tax on foreign income

The guidance below will help you work out if split year treatment applies:

RDRM12150 - Residence: The SRT: Split year treatment: Case 4: Starting to have a home in the UK only

You would also need to look whether you are claiming remitance basis or not as to whether the DTA is applicable:

Remittance basis 2021 (HS264)

Thank you.

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