Tax Code

[hampden_loon2878]

On the subject of tax, i work for a uk based company who have a workshop in norway, i worked over there for about 4 weeks this year, to my surprise i recieved a tax rebate from the Norwegian government my question is should i inform my company i received a cheque through the door and if no would i need to pay tax on that check?

Edited April 7, 2015 by hampden_loon2878

[tartandon]

On the subject of tax, i work for a uk based company who have a workshop in norway, i worked over there for about 4 weeks this year, to my surprise i recieved a tax rebate from the Norwegian government my question is should i inform my company i received a cheque through the door and if no would i need to pay tax on that check?

caveat - I've not worked as an accountant since the late 90s

In the UK, you only have to pay income tax if you are 'ordinarily resident' for a certain number of days in the tax year (residence being counted a being present in the country at the stroke of midnight on any given day).

I would presume that Norway has a similar rule and thus you have been refunded the income tax because you are not ordinarily resident.

But i'm confused why you would have been subject to Norwegian tax in the first place given that you are contracted to a UK company and thus would be subject to UK tax given that this is where you are based for the majority of the time

[hampden_loon2878]

For whatever reason i thought that any income made over in norway regarless of duration had to be paid to their governent, i received a few grand back so its a good bit of money, i recieved this once before and just sat on it for a year before spending it,,,

caveat - I've not worked as an accountant since the late 90s

In the UK, you only have to pay income tax if you are 'ordinarily resident' for a certain number of days in the tax year (residence being counted a being present in the country at the stroke of midnight on any given day).

I would presume that Norway has a similar rule and thus you have been refunded the income tax because you are not ordinarily resident.

But i'm confused why you would have been subject to Norwegian tax in the first place given that you are contracted to a UK company and thus would be subject to UK tax given that this is where you are based for the majority of the time

[The Kilt]

Thanks guys. Will check my P60 and that site tomorrow. But it looks like I'm due a decent refund, plus, if I'm not mistaken, I should get a 12th of £2,000 every month added to my wage, so about an extra £166. Happy days.

Wonder how many folks on here will get a refund due to this thread.

Suprised neither of your employers have had a electronic update for your tax code.

With RTI all employee data goes to them every pay run. Tax code errors and Ni errors are fed back to employers very much straight away.

ie - all my staff got tax code changes already for this year ( monday ) and student loans today. All direct from the Taxman!!

When we enter the new tax codes employees get the refunds accordingly. My staff will either be happy or raging this week.

[euan2020]

For whatever reason i thought that any income made over in norway regarless of duration had to be paid to their governent, i received a few grand back so its a good bit of money, i recieved this once before and just sat on it for a year before spending it,,,

Likely your company as a matter of course pays over tax for all overseas staff, who have worked in country in Norway- I would expect this to be reconciled at the end of the Norwegian Tax Year, so they might come back looking for money - either the tax Authority or your company.

I am based overseas, but i am back in UK working at home, rather than on course, training etc - there would be a liaiblity for my work days, even though i had not breached the 95 day rule - I think its a material amount of about 10 days, where i would have to pay 10 days worth of tax, with no tax free earning

Problem is - especially in this present climate of folk getting fired, if you pocket the money that Company paid for your tax liablity in Norway - its an easy way for them to fire you with no severance package, if they find this out later

If you want the money back, better to find out if there is a double taxation agreement, and once tax is paid in norway, use this to offset your liabiliity in the UK, so reduce the tax here - ends up with same difference but removes the opportunity of you getting fired

guys in Oil Indistry get letters from Company in Algeria, Libya, Angola showing Company paid their income taxes there, and been successsful in either no UK Taxes or reduced liability - ie they got 100% of their salary, becuase the Tax overeseas was at Company Cost and still able to spend 6 months of their time in UK

[hampden_loon2878]

Ok cheers i will sit on tje money and wait until they come looking for it, the cheque would need cashed regardless.I know that when i work over there the Norwegian lads are getting paid a lot more and get huge overtime rates, i am guessing that my company will then be charging the client the same for me which in turn the Norwegian government thinks i am getting paid a lot more than i actually am.

Likely your company as a matter of course pays over tax for all overseas staff, who have worked in country in Norway- I would expect this to be reconciled at the end of the Norwegian Tax Year, so they might come back looking for money - either the tax Authority or your company.

I am based overseas, but i am back in UK working at home, rather than on course, training etc - there would be a liaiblity for my work days, even though i had not breached the 95 day rule - I think its a material amount of about 10 days, where i would have to pay 10 days worth of tax, with no tax free earning

Problem is - especially in this present climate of folk getting fired, if you pocket the money that Company paid for your tax liablity in Norway - its an easy way for them to fire you with no severance package, if they find this out later

If you want the money back, better to find out if there is a double taxation agreement, and once tax is paid in norway, use this to offset your liabiliity in the UK, so reduce the tax here - ends up with same difference but removes the opportunity of you getting fired

guys in Oil Indistry get letters from Company in Algeria, Libya, Angola showing Company paid their income taxes there, and been successsful in either no UK Taxes or reduced liability - ie they got 100% of their salary, becuase the Tax overeseas was at Company Cost and still able to spend 6 months of their time in UK

[MacTaz]

Same thing just happened to me, changed jobs January this year and despite giving new employer correct tax details ended up on a BR Tax code. So my Army pension and my salary were taxed at 20% Go online HMRC there's a phone number to call , can be a pain getting through but when I did it took about 10 mins to sort out and a nice wee rebate coming my way in a month or so. !