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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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The company I work for paid 28.2% tax (approx £74,000.00) to

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The company I work for paid 28.2% tax (approx £74,000.00) to the Azerbaijan Goverment on my behalf. I earned approx £180,000.00. I stay in the uk and work a 4 weeks away & 4 weeks at home rotation.
How much tax can I expect to pay in the UK?

Which tax year are those earnings for? The UK tax year runs from 6 April to 5 April. Is the company you work for a British company or an Azerbaijan company? Are you employed or self-employed?
Customer: replied 3 years ago.

2012 - 2013 and it is a british company. Self employed


Leave this with me while I draft my answer.
Customer: replied 3 years ago.


Hi again.

I've just noticed a discrepancy. You say you paid tax in Azerbaijan of £74,000 or 28.2% of your earnings. That doesn't match up with earnings of £180,000. Were your earnings pre-tax £254,000?
Customer: replied 3 years ago.
The two figures together were approx £260,000 yes.

I'm drafting my answer now.
Customer: replied 3 years ago.
Hi again.

The UK tax on self-employed earnings of £260,000 for 2012/13 will be £108,126.00 and the Class 4 National Insurance Contributions will be £7,488.50 so your total gross liability will be £115,614.80. As you have paid tax in Azerbaijan of £74,000.00, your net UK tax and NIC liability is £41,614.80. This will be payable on 31 January 2014.

If you are still self-employed, your will have to make payments on account of your tax and NIC liability for 2013/14 of £20,807.40 on each of 31 January 2014 and 31 July 2014. That's assuming you will continue to pay tax in Azerbaijan. You can apply to reduce your payments on account if your 2013/14 earnings are less than those for 2012/13.

If you incur expenses, you may be able to claim these against your earnings which will reduce your tax and NIC liability. You might ask your colleagues what they do in this regard.

Your self-employed earnings are covered by Article 14 of the UK/Azerbaijan tax treaty here. Article 22 allows you to offset tax paid in Azerbaijan against your UK tax liability.

I hope this helps but let me know if you have any further questions.
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