Hi all,
Although at present I am going through the process of presenting a full and final offer I have thought of another issue that will possibly complicate my situation.
I moved to Spain in Oct 2020 and so this year I’ve had to do a tax return for the first full tax year (Jan-Dec 2021) that I’ve lived here. Up until now I have been paying tax, on a company pension I receive, in the UK.
As I’m now considered a tax resident of Spain I will get a tax bill for last year and I should receive a tax rebate from the UK so that I’m not double taxed on my pension.
When I receive a tax rebate from the UK it’s usually expected that it is given over to my IVA however as I will have to pay my tax bill here in Spain would I be expected to handover any monies I get back from the UK? I would also add that my tax bill in Spain will be slightly higher than the rebate of taxes from the UK.
You will need to discuss this with your IP. I assume that the tax bill in Spain will be regarded as an essential outgoing and be allowed against your income. I would further argue that the rebate from HMRC is not a windfall, as it is to be, effectively, passed to the Spanish Tax Authorities instead.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy, I was thinking the same as one way or another I’m having to pay taxes! It’s not something that I can decide not to do. I’ll speak with my IP
