ROS showing tax liability on UK income

Hi,

I am doing up my tax return to submit it through ROS. I'm UK resident for 2011 and have no Irish income. When I put my income in it calculates the tax and then shows double taxation relief of about €900 less, leaving me with a liability.

Does it make sense that there would be an Irish tax liability on solely UK income?

Thanks

Double taxation relief will only provide relief to the extent of tax paid oin your other country. UK and Ireland have different effective tax rates, so there is bound to be a difference.

You dont mention why you are filing an Irish tax return or what type of UK income it is?

Thanks for the reply,

I'm a director of a small company my brother has so have to file a return (I get no income from it). My UK income is for regular employment. I have lived there for getting on three years, so would have thought it's a bit much to be charged tax when I am not resident in Ireland anymore?

If you are not resident in Ireland and have no Irish income, what income is being taxed?

Hi Joe,

That's what I'm trying to figure out - ROS is applying Irish tax rates to my UK salary under foreign income and them giving a credit under the DoubleTaxationAgreement. The problem is this credit is less than the tax!

Hi Tom
We had a similar problem when we made our first tax return as non residents. First time we got a bill for €3000 even though we were claiming cross border relief. We had made a manual return as we had been advised that ROS does not have the facility to calculate a cross border return correctly....something to do with the universal social charge/PRSI element of the return. We contacted our local Tax Office and explained what had happened ...they corrected it for us and gave us a nil liability. This year we made the manual return again and they issued us with a letter stating that we are tax exempt for this year and next year.

Hi Tom

If you hold less than 15% of shares in this company and recieve no income from it you don't need to file a tax return.

If you are required to file a tax return I would suggest that as a non-resident your UK income is exempt from Irish tax. By including it in foreign income you're effectively telling ROS that it is taxable in Ireland (despite perhaps clicking the non-resident box). There is a box for any other exempt income in the exempt income section, which might be an appropriate place for it.