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Posted Wed, 03 Jan 2024 13:58:44 GMT by
I have been asked to post this but am almost certain I know the answer. We act for an individual who has worked in the Netherlands for a short time and qualified for the 30% facility (basically incentivising talented individuals to work there). The individual remains resident for UK tax purposes but has been required to submit a Dutch Tax Return. We obtained a copy of the 2022 Dutch Tax Return to help with his 2023 UK Tax Return, as the former only goes as far as 31/12/22 we obtained payslips covering the rest of UK the year. It became apparent form the payslips that there was a reduction to taxable pay by 30% and having obtained earlier payslips and compared to the Dutch Tax Return it transpires only 70% of income is included in the Tax Return (without the payslips this would not have been obvious). I am almost certain that despite absence from the Dutch Tax Return these additional earnings are assessable in the UK - the only doubt being they were not in the Dutch Tax Return and likely not in the Dutch equivalent P60 that we could easily have relied on without the payslips. Any confirmation or otherwise that the extra 30% income is assessable in the UK will be most welcome.
Posted Mon, 08 Jan 2024 12:50:37 GMT by HMRC Admin 10
Yes, the full amount of your client's Netherlands earnings (ie including the tax-exempt 30%) should be declared in their 2023 tax return.

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