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Posted Fri, 26 Jan 2024 18:29:18 GMT by
Is there any relief HMRC can provide me for all the extra tax I've paid to the U.S as I believe it could be up to 700 dollars per month or will I have to get in contact with the U.S tax people in order to get this money back as it was wrongly withheld. I'm quite unsure of what to do.
Posted Wed, 31 Jan 2024 08:00:48 GMT by HMRC Admin 25
Hi Anisha,
You can claim Foreign Tax Credit Relief to set against any UK tax due on the same source of income.
Any excess would need to be recovered from the US tax authorities.
Please see:
Tax on foreign income
Thank you. 
Posted Wed, 31 Jan 2024 08:35:41 GMT by
Okay so I was a bit confused before about what foreign tax relief meant in terms of HMRC providing it, I am 100% sure I am not being taxed in the UK for the 2022-2023 tax return (as I am certain that I earned under the threshold). I filled out the form to the best of my ability without fully knowing the numbers for what amount has been withheld from me since I only have my 1040S document detailing withheld income from the year 2022 from the company that pays me. (I will find out more details at a later date but did not want to miss the deadline) and so I believe I marked the figures as provisional. The withheld income only reached around 700 dollars later into the months, and the only real figure I have for money that was withheld from me is around 100 GBP which I noted on the foreign income section of my return. (this is my first time doing my return as well as without an accountant). I have three questions that I would love to have answered if possible: Will I be okay in terms of penalties if I edit the return within the next year to mention how much extra income was withheld from me since I owe no tax and there will be no mistake in terms of that? (I know you can edit returns up to a year after submitting them and I know the extra income will not make me pass the tax threshold). I believe because of the fact that I am not liable to pay any tax in the UK, there is no relief that HMRC can provide me for my withheld money as it is to do with the US tax authorities, is this correct? and finally, would the best course of action in terms of recovering my money from US tax authorities? Would an accountant be the best option for helping me contact the IRS and filling out the correct forms or can HMRC assist with retrieving withheld income because I am unsure of how the U.S system works and contacting Amazon tax central led to them telling me to contact the IRS so I am a bit confused where to start with that process. If these three questions could be answered I'd really appreciate that thank you!
Posted Fri, 02 Feb 2024 08:30:01 GMT by HMRC Admin 25
Hi Anisha,
Yes you can amend the return up to 31/01/25.
If any tax is due though, you may be charged interest and/or penalties for late payment.
If no UK tax is due on the foreign income, Foreign Tax Credit Relief is not available and you would need to claim any excess from the foreign tax authority.
HMRC cannot advise you on how to do this.
Thank you. 

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