Hungarian Rental Income Tax - Documentation acceptable to Tax Office

I've paid my UK tax on the rental income I receive from my apartment in Budapest,and have applied for a Hungarian tax number in order to pay Hungarian tax on it.

However, my UK accountant has failed to come up with an official way of demonstrating how much tax I have already paid on the rental income in the UK so that I don't pay it again in Hungary; only the difference between UK and Hungarian amounts should be paid.

Is an annotated version of my UK tax return enough to show what I've paid, or is there another, simpler route?

Thanks

You probably won't get an authoritative answer here since Askaboutmoney is an Irish site dealing primarily with Irish personal finance and related issues. Perhaps there is another site that can deal with such UK specific queries (e.g. would www.fool.co.uk have a suitable forum perhaps?)?

I think there is a lot of people from the UK that read this website, - it is just so informative. I am from the UK - although I do not know the answer to your question.

I am here to learn since I have purchased off plan. Hoping ive gotten the timing right since it will be finished by Dec 2008, Im hoping the austerity measures effects will have passed the painful phase by then.

Why did you pay your UK tax first? Wouldnt it have been easier to pay your HU tax first - get the proof then do the UK tax?

P.S I would like to keep in contact with people from the UK since there doesnt seem to be anywhere for us that I have found - to discuss things like this.

subculture, you have taken a strange route in paying your tax. The correct way is to pay tax initially in Hungary using a Hungarian accountant and then paying the difference (if any) in the UK. You would have received a tax certificate, which showed how much tax you paid locally.

Who advised you to go down the route you took? In almost all cases, local taxes need to be paid first. As of now, you have not cleared your liability with the Hungarian tax authorities and should speak to a local accountant as soon as possible.

I found the tenant myself, wrote the contract etc. There is no agency involved.

I have got a local Hungarian accountant, who has done the paperwork for me and is ready to submit my Hungarian return.

I just wanted evidence of my UK tax paid to send in with this.

Howevere, maybe I should just proceed with the Hungarian return, and try to retrospectively claim back some UK tax after that...

Wrote your own contract! - Did you have some examples to work from? Do you live in Hungary? Will you manage your own property there?

How did you find your own tenant? Did you advertise in local paper? Or was it through a personal aquaintance?

With regards to your accountant - how much does he charge - and if you feel he decent - feel you can recommend him, could you private message me his details?

Thx

Could we set up an online poll here to determine the best agent ..... get everyone to vote. That way we wont be slaundering the less effective companies but we will get an overall picture of who people think is best.

subculture, what do your accountants say in relation to using the tax you paid in the UK as a way of deducting from the HU amount? I've never heard of anyone doing it this way and I'm not sure if it's permissable. Perhaps, as you say, you could pay the correct amount due in Hungary and then claim back what you overpaid in the UK.

You'll find it much simpler next year if you pay tax locally in Hungary and then pay the remainder due (if any) in the UK. (By the way, if the income is from 2006, then you've already missed the deadline for payment in Hungary and may also be subject to a fine for late payment.)

I would agree with Budapest here, pay the local tax first and then the UK tax.

I've no ideas about the legalities of doing it the other way around, but I'm sure it must be easier to get a tax refund of the British government then it would be to get it of the Hungarians.