Question on filing tax return while having UK bank accounts

D

DelBoy72

Registered User
Messages
20
Hi there

I have a current account and a savings account in the UK.
The wife has the same (in her name).

We are now resident in Ireland and are taxed jointly here.
I work and my wife is a stay at home mum.

Our UK accounts have obviously earned interest in the last year.

While trying to claim this years tax on the www.ros.ie site, I have come across the following:

Other Foreign Income

Under which, there are the following two fields:

Gross Foreign Income - enter whole Euro amounts only
Foreign Tax Deducted - enter Euro and cent amounts

And there are two columns - one for each of us.

Question 1 - The Tax year ends in the UK at the start of April, so do I only enter interest from April 07 till end of Dec 07?

Question 2 - Is it necessary to enter our interest earned separately or can it go in one column - mine - as I am the tax payer in Ireland - Or must it be separated?

Question 3 - We also have a joint bond that gets interest credited at expiry - September 2008 - I am unable to provide an accurate figure of the interest earned last year. Do I just estimate and then inform the revenue when I know the correct figure next year? Or leave it out and enter it next year when I know the correct figure?

Question 4 - The fields ask for Euro amounts - The Euro / Sterling rate has varied a great deal recently, so my figure would not be accurate if I were to take the total interest and convert at todays rate.

Question 5 - Why do I actually need to enter the details here, as the interest paid has already had UK tax deducted? If giving this information again, am I in danger of being taxed on it again?

I also see the option below:

UK Dividends

With the field:
Net UK Dividends - enter whole Euro amounts only

I trust this is for share dividends and not to be confused with the one I am looking at above?
(I have no shares)

Sorry for all the questions - The first time I have done this in Ireland.

Many thanks in advance for the usual informative replies!
 
1) You need to enter the interest earned in the period 1 January 2007 to 31 December 2008. If this does not appear on your UK bank statements request the information from your bank and they will provide it to you.

2) You need to enter your own and your wife's income separately. Your wife is also considered to be a taxpayer and entitled to her own tax credits against her income.

3) If the interest is only payable in September 2008 - it will refer to the 2008 tax year, and should be included on that tax return form.

4) You need to used the exchange rate for the date of payment of the interest - e.g. if paid monthly - you will need to do 12 calculations for each payment date.

5) If you are domiciled in Ireland you have to pay Irish tax on your worldwide income, but you will get a tax credit for any foreign tax paid. If you are not Irish domiciled you are only taxable on Irish source income, but also taxable on coreign income if it is remitted to Ireland. What is your domicile?

UK dividends are taxed on the net amount, and not included in "other foreign income" which is taxed on the gross amount but with a foreign tax credit.
 
Thank you very much for your comments Domo!!

Regarding point 4 - I can work out the interest month by month based on the rate at the time, but it is unlikely to be acurate. How would somebody get around this, as the rates change every minute. What if I calculate it incorrectly?
I will calculate it on a monthly basis for this year.

Regarding point 5, according to this:

http://www.citizensinformation.ie/c...axation/tax-residence-and-domicile-in-ireland

Where it says "Your domicile is the country where you live with the intention of remaining there permanently. It may be different to your residence or nationality."

Yes, I am now living in Ireland. Have bought a house, got a permanent job and intend to remain.

But it seems that I am not "ordinarily resident" as I moved here during the tax year (May) and have not been here for three consecutive years - see section 9 of the same document.

According to the second from last entry in Appendix A and Note 4, I would be taxed on foreign income unless its from the UK, which it is.
So what does this mean to me?

One more thing - I am looking at my interest received in Ireland and some give details of DIRT and some do not, so I am calculating backwards, but there is a risk that I could make a mistake. Do you get an annual tax statement from banks here in Ireland? In the UK, you get a breakdown of gross, net etc a few weeks after the end of the financial year. If so, I may wait until these arrive.

Thanks!
 
Sorry, the second document I was refering to above is this one:

[broken link removed]

Any advice appreciated, Thanks.
 
You must log in or register to reply here.
Back
Top