Tax credits etc

happyjames wrote:

Hi all,
Happy christmas to you all and a happy new year to come

I just wanted to know if i was coming out to live in spain and work in Gib, am i still able to claim my UK tax credits?

Also i understand there is a Gib tax releif for having a child, does anyone know much about that too?

Anyway thanks for your advice in advance.
Happyjames

Hi

I think you are asking if you can claim UK tax credits, Gib tax credits, and live in Spain, while working in Gib?  Is that right?  Mmm, I guess lots of people would like that one too.

Well to my knowledge no.  Not legally.    Although I may well be wrong.

If you are employed by the MOD and working in Gib you will be entitled to UK tax credits.  And UK taxes. 

That may well apply if you are on secondment from a UK firm too. I don't know.

If you live and work in Gib, you will be entitled to Gib tax benefits, credits, allowances, whatever, depending on your status.

But let me get this right, cos it seems a bit complicated.  I need to repeat it.  You want to live in Spain, work in Gib, claim UK tax benefits, and Gib ones too?  Haven't you forgotten the Spanish ones?  Don't you want to claim those as well?

Are you having a laugh?  I can't believe you are serious.

Hi there,

Judging by your response, you think i am just up for getting tax credits from everywhere and line my pocket, and that was not the intent of my previous post.

I am new to coming out and i am not 100% sure of what can and can't be done, so just asking simple questions in regards to these matters so that i gain a better knowledge.

these are not questions that i want to do all together, i am asking loosely what can and cant be claimed.

Currently we get working tax credits, and according to their site, there are some European country’s that if you was living and paying tax there, that you would be still entitled to your working tax credit. I have called them to see if Gib is one of those places i can work and still get this payment from the uk. They are unsure of Gibraltar as there are a good amount of places you can do this, and they are looking into it. But i was wondering if anyone else has had the same issue.

I am not looking to make money from claiming tax credits from everywhere, i am new to all this and just mealy asking for advice.

I have some knowledge of tax systems.

Normally they work on where you are resident rather than where you work, so you probably need to look at the Spanish tax system.

Blu

Thank you for the advice Blu and for not jumping the gun like the other person who replied thinking I am just trying to rip the country off.

happyjames wrote:

Thank you for the advice Blu and for not jumping the gun like the other person who replied thinking I am just trying to rip the country off.

The other person, roughseas, is actually quite nice

One thing you need to research is the issue of double taxation. I don't know enough myself about tax in Gibraltar, but in places where your income is taxed at source by your employer (such as PAYE in the UK) you can end up paying tax in the country where you work (i.e. Gibraltar), and then being asked to pay tax in the country you are resident in (i.e. Spain) on your foreign income.

To avoid this, countries enter into tax treaties, so you only pay tax in one location. Given the antipathy between Gibraltar and Spain I've no idea how this might work, but I'm sure there are plenty of people here who have experience about this.

Roughseas may have some knowledge of this, as she is rich and has homes in both Gibraltar and Spain.

Blu

n.b. To any accountants reading, this is a rough outline of how things might work, professional advice is always good

I hope I'm not going to make HappyJames UnhappyJames.

You may (or may not) want to read this:

http://www.abacoconnect.com/resident-taxes-in-spain

Looks like in this difficult time for Spain that they are trying to clamp down on people who live there and don't pay tax on their worldwide incomes.

Blu.

n.b. I've no idea who 'abacoconnect' are and do not endorse their services in anyway.