Foreign Tax Question

JodieR

Client is resident, ordinarily resident and domiciled in the UK, working as a self employed designer. He did some work for a Polish company and received payment net of 20% polish tax. Am I right in thinking that he'll be taxed on the gross amount at the same rates as if he'd earned it in the UK, but he can claim relief for the foreign tax witheld? So, effectively, as he's a basic rate tax payer he will pay an additional 2% tax on this?

deanshepherd

Yes.

A client of mine has also done some work in Poland recently and said that he would not get paid until he provided his client with a Certificate of UK Tax Residency for the purposes of the UK/Poland tax convention. Perhaps there is an option to be paid gross on the production of the certificate? I have not looked any further into it.

JodieR

Thanks
I think this was a one-off job and he never mentioned the certificate, January's not the time to be probing any further!