income tax

lili

I have got one query, some one ask me about how the income tax to be calculated this is the situation, The guy is from Germany and he just came here for the show(artist) he get paid weekly, his manager told him to pay income tax on 22%, there is no any tax relief he been told just pay 22% of his income. He will be back to Germany after 1 month. So how is the income tax will be work for some one who just came here for work (show). Any help will be appreciated!!!!!!!!!!
Thank you:glare:

peugeot

Generally a non uk resident would be taxed on earnings in the UK and there are circumstances that when this income is remitted to to the country of residency, that it could be subject to further tax. There are agreements in place with various countries and the UK for double tax relief. However, in terms of entertainers, this relief will not be available and the employee concerned would need to contact the Foreign Entertainers Unit at HM Revenue & Customs for advice on on how the income will be treated for tax purposes.

The Foreign entertainers unit in Birmingham can be contacted on 0121 606 2861.

Kind regards
Steve

Bluewednesday

Am I right in thinking that they also wouldn't get a personal allowance which is why deduction is 22%.

peugeot

Only certain non-residents are entitled to personal allowances and include those which basically are commonwealth citizens, EU nationals, Channel Islands and Isle of Man (there are others but off the top of my head I can't remember exactly!!)

The UK tax suffered is subject to an upper limit, the calculation of such isn't that straightforward as I remember (though it is tax, after all, so the more complex the better!!)

In the case of the above scenario, the fact that certain non-residents are entitled to personal allowances is not set in stone, hence s/he should contact the Foreign Entertainers Unit to clarify exactly what the tax position should be.

Best wishes
Steve

lili

I just want to thank you all for the reply and great at least I should contact the people to get more information and be able to advise my friend as he hope I will help him as accountant hahahah

tanx

peugeot

No problem! Good luck to your friend.

lili

Hi steve
i cant get through the number you gave me. is there any other number i could try?

peugeot

Try 0151 472 6488!