shemarg wrote:Be careful. My abogado deducted the tax I’d paid in UK in 2013 (my first year of residency and doing Spanish tax) I claimed a refund as advised for the uk tax paid which I received a year later. I have recently received a demand for the tax deducted from Spain as they say it was refunded by UK so due to them - plus interest for each year since.
Just be warned
Hi,
Just wanted to double-check this with you, as my wife has to do this for the first time this year: when you say your "abogado deducted the tax I'd paid in UK in 2013", do you mean they offset the tax you'd already paid in the UK for that year in your Spanish tax return? So then who advised you to claim a refund in the UK? That would mean you hadn't paid the tax due for that year in either country?
Also, does this suggest that you could have continued to pay tax in the UK and had an allowance for tax paid there offset in your Spanish tax return, so long as you didn't then claim a refund in the UK?
I understand the need to complete the P85 form for people who are drawing UK State Pension and have no other source of income, but my wife was told that as the income she earns from her rental property is generated in the UK, she has to pay any tax due there and have that offset against any tax liability she may have in Spain. If this is correct, does that mean she should NOT complete the P85 form?
She's called HMRC a couple of times; one of the responses was even, "We can't advise on Spanish tax", so it would be helpful to hear from any one is a similar position who has already been through this.
Thanks,
Paul