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tax caution renta return

Renta/tax return - Caution!
#1
Most will probably already be well-aware, but just a note of caution for anyone looking at the ‘double taxation’ element in completing their Renta, or tax return. The Agencia Tributaria are clamping down very, very firmly on anything they see as an infraction of the double taxation arrangement between Spain and the UK!

Although my tax position is relatively simple, I’ve always used an asesoría to complete my tax return, for peace of mind. They advised from the start that they could offset any tax paid in the UK against that due in Spain under the DT agreement, and I was obviously happy with that. A few weeks ago, however, I received via my electronic key a long letter from AT concerning my Renta for the 2019 year, basically telling me that this was an incorrect use of the DT agreement, and that as a resident of Spain I should arrange to cease paying UK tax, and pay in full in Spain. I read up on it - it had been a niggling worry anyway - and yes, I could not argue with the point being made. I agreed to pay (and have now paid) the several €K difference due, and completed the form for the Inland Revenue to cease UK tax and reclaim back-tax, hopefully. Still waiting to hear if they have received my application by mail!

At this point my asesoría ceased responding to my calls and emails, and I can perhaps see why. I’d hoped the matter with AT was now closed, but no. They’ve written again with what is basically a hefty fine for ‘my’ mis-declaration. I can’t really argue or appeal it, my submission was incorrect, and I can pay the sanction/fine. I just want warn anyone who may be in a similar position NOT to use the double taxation provision in this way, and to ensure they are getting good professional advice from their asesoría. My NEW asesoría clarified the position for me, adamant that the approach previously used in my submission was absolutely unacceptable.

Purely as an addendum, I’d heard one could submit the ‘Application for tax relief at source’ to the Inland Revenue via the Government Gateway. I’m darned if I could find any link to do that in the Gateway, so have had to rely on the post. If anyone has actually done it that way, I’d appreciate a steer, just in case my letter never reaches them!

Oh for a quiet life on the tax front!
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#2
Thanks for the info. It would be helpful to know who to avoid for this service.
Working on it, one step closer  Cool
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#3
Gattaca66, thanks for the warning. I am in process of settling here as a resident and still have UK financial interests e.g property, pensions etc like many other people. I probably should have paid much more attention to the tax implications of being a UK national resident in Spain as i am only now finding out there are significant differences in UK and Spain tax systems that can leave you with an unexpected billConfused
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#4
My experience but definitely not gospel.
Assuming the individual already has their Uk gateway.
Hunt down P85  and complete carefully. They will ask for your Spanish tax certificate download via electric key.
send off and wait and wait.
My first reply from HMRC never arrived here, in the end my claim was for 22 months UK tax!!
 One problem I can get sorted here is UK annuities. My assessor really messed them up.
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#5
(23-05-2021, 09:28 AM)DavidP Wrote: My experience but definitely not gospel.
Assuming the individual already has their Uk gateway.
Hunt down P85  and complete carefully. They will ask for your Spanish tax certificate download via electric key.
send off and wait and wait.
My first reply from HMRC never arrived here, in the end my claim was for 22 months UK tax!!
 One problem I can get sorted here is UK annuities. My assessor really messed them up.

I sent my forms to cease UK tax by post, and the Correos tracking system still showed it undelivered ten days after reaching the delivery office. Assuming they probably don’t get delivery signatures from HMRC, I checked via Gateway and yes, my application has been received and my case is underway. I’m praying they contact me by phone or email for any further queries. Fingers crossed, but set for a lengthy wait! Gov. Gateway, by the way, is a very useful channel which works very well in my experience, well worth setting up for anyone who has not done it!
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