mary louise

Could you please explain the use of this calculator? 1. Is it appropriate for foreign savings interest for a Worldwide Disclosure? Or should I be using the calculator for 2010 to 2023? 2. The main header advises that 'this calculator is for illustrative purposes only - it is not designed to formally determine tax and interest due'. Does this mean the results are not acceptable for a Worldwide Disclosure? 3. What is required for Step 2 'Description': foreign savings interest? country? bank? 4. How do I enter 'Income tax due'? I have Withholding Tax Certificates which record gross interest earned, tax rate (10%), tax deducted at this rate, and net interest. Based on the relevant DDA, I have taken the tax due in the UK to be equivalent to that already deducted i.e. a further 10%. Which WTC figure after currency exchange can be used in the calculator for 'income tax due': the gross interest, the equivalent of tax already deducted at 10%, or the net interest? 5. Once a payment date is entered, the calculator shows two consecutive years, the one checked in Step 1 and the following year. For the first year the calculator has added 'income tax due' to 'interest on balancing payment' and 'penalties due' to reach the total sum due. Could you explan the reference to 'interest on balancing payment'? I have not made any previous payments. Thank you for your help.

I agree with Andy that 'If you need to pay tax' is misleading. E.g. If tax has already been paid on rental income in a DTA country at the same rate as in the UK, it seems reasonable to conclude that this removes the 'need to pay tax' to HMRC and hence the requirement to report this foreign income in an SA return. As with much of the 'guidance' on the HMRC site, it's one page forward, two sideways for the reader with no financial background. See also the view of the Low Income Tax Reform Group (litrg.org).