How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 4188
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your UK Tax Question Here...
bigduckontax is online now
A new question is answered every 9 seconds

Since my AIRE request was approved on October 2015 it means

Customer Question

Hi!
I'm Italian and since my AIRE request was approved on October 2015 it means that for more than half year I've been considered as Italian resident, this, as my Italian accountant confirmed, requires me to state my 2015 UK incomes also in Italy and to pay some taxes there too.
I've been working in UK as a permanent employee since January 2015.
I've seen that Italy and UK have a tax treaty (https://www.gov.uk/government/publications/italy-tax-treaties-in-force), how does it works? Which documents do I need to provide? I've an Italian accountant who can help but he asked me about what documents I can bring him other than my payslips. Can you give me some guidance ?
In particular:
- which documents are required?
- how does it works with conversion change between GBP and EUR?
- where can I see how many taxes I've payed here in UK.
Thanks!
Sandro.
Submitted: 1 year ago.
Category: UK Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

AIRE is a compulsory registration for all Italian citizens living outside Italy required by the Italian Government.

If you have been working in the UK as a permanent employee since January 2015 then you will be liable to UK taxation on your world wide income for the 15/16 tax year et seq. Presumably, as you are employed you will be having Income Tax (IT) and National Insurance (NI) deducted under PAYE. You will also be classed as resident in the UK for tax purposes from January 2015.

There is a Double Taxation Convention between the UK and Italy which precludes the same income stream being taxed in both jurisdictions. This is achieved by means of tax credits, the tax paid in one country being allowed as a tax credit against liability in the other. The Convention does not protect you from differences in rates of taxation, however.

From your UK employment you will receive, at the end of each tax year [5 April] by your employer, a form P60 which sets out the gross income received and relevant deductions. You can use this form to support your tax credits to the Italian taxation authorities. Alternatively, if you are self employed and make Annual Self Assessment Tax Returns HMRC will send you a Form P600 which sets out the IT and NI due which again you can use to satisfy the Italian authorities of the taxes paid in the UK.

I do hope that you have found my reply of assistance.

Customer: replied 1 year ago.
Hi! Thanks for your reply, I've 3 follow up questions:How do I obtain a P60?
My previous year (2015) was divided between two employer, the first between Jan and Jul and the second from Aug onwards. Should I contact my previous employer to get the P60 related to the period from Jan to Jul? Or should I contact the HMRC?The fiscal year in Italy is Jan to Dec.
And here in UK is Apr to Mar, correct? How can I work around this issue? Is the P60 already split into months?How I should convert between GBP and EUR?
All the documents here are in GBP but all the documentation my accountant in Italy needs to produce is in Euros, how does the conversion works? which day should be taken for the conversion rate?Thanks!
Expert:  bigduckontax replied 1 year ago.

Your employer as at the end on each UK tax year is required to provide you with a Form P60 which sets out emoluments paid to you and taxes deducted including all employments undertaken in that tax year by 19 May.

You will have to use common sense to split between Italian and UK taxation periods. Your pay slips will saaist you in determining the actual data.

Conversion between the GBP and the eiro is available through HMRC channels, here:

https://www.gov.uk/government/publications/hmrc-exchange-rates-for-2016-monthly

Please be so kind as to rate me before you leave the Just Answer site.

Expert:  bigduckontax replied 1 year ago.

Your employer as at the end on each UK tax year is required to provide you with a Form P60 which sets out emoluments paid to you and taxes deducted including all employments undertaken in that tax year by 19 May.

You will have to use common sense to split between Italian and UK taxation periods. Your pay slips will assist you in determining the actual data.

Conversion between the GBP and the Euro is available through HMRC channels, here:

https://www.gov.uk/government/publications/hmrc-exchange-rates-for-2016-monthly

Please be so kind as to rate me before you leave the Just Answer site.