Partly prompted by Jon Griffey's comments about this group (which I fully
share), here's one on which I would appreciate some informed advice.

A UK resident has spent short periods in Poland in each of the last two tax
years, doing a bit of free-lance work.  She was obliged to submit a return
and pay Polish tax, but the Polish rules (in this instant) on tax-deductible 
expenses are very different from the UK's.

The result is that her "taxable profits" (per Polish rules) in 07-08 gave
rise to a modest tax bill in Poland, but a load more UK tax to pay.  In
08-09 the position was reversed, and the Polish tax paid covers the UK
liability with ample room to spare.

So - am I right in presuming that UK expenses rules must be applied in
determining taxable profits for UK tax purposes?  Or is there a provision
I'm missing, or even the option to elect which rules are adopted?

TIA


-- 
Martin

On 2 Nov, 19:07, "Martin"  wrote:
> Partly prompted by Jon Griffey's comments about this group (which I fully
> share), here's one on which I would appreciate some informed advice.
>
> A UK resident has spent short periods in Poland in each of the last two tax
> years, doing a bit of free-lance work.  She was obliged to submit a return
> and pay Polish tax, but the Polish rules (in this instant) on tax-deductible
> expenses are very different from the UK's.
>
> The result is that her "taxable profits" (per Polish rules) in 07-08 gave
> rise to a modest tax bill in Poland, but a load more UK tax to pay.  In
> 08-09 the position was reversed, and the Polish tax paid covers the UK
> liability with ample room to spare.
>
> So - am I right in presuming that UK expenses rules must be applied in
> determining taxable profits for UK tax purposes?  Or is there a provision
> I'm missing, or even the option to elect which rules are adopted?
>
> TIA
>
> --
> Martin

Dont UK rules always apply for UK tax?

You don't prepare accounts using tax rules. You prepare accounts and
then adjust them for the tax rules in Poland and UK.

In article <B7GHm.24673$Ah3.2355@newsfe01.ams2>, Martin 
 writes
>Partly prompted by Jon Griffey's comments about this group (which I fully
>share), here's one on which I would appreciate some informed advice.
>
>A UK resident has spent short periods in Poland in each of the last two tax
>years, doing a bit of free-lance work.  She was obliged to submit a return
>and pay Polish tax, but the Polish rules (in this instant) on 
>tax-deductible expenses are very different from the UK's.
>
>The result is that her "taxable profits" (per Polish rules) in 07-08 gave
>rise to a modest tax bill in Poland, but a load more UK tax to pay.  In
>08-09 the position was reversed, and the Polish tax paid covers the UK
>liability with ample room to spare.
>
>So - am I right in presuming that UK expenses rules must be applied in
>determining taxable profits for UK tax purposes?  Or is there a provision
>I'm missing, or even the option to elect which rules are adopted?
>
>TIA
>
>

Indeed the UK rules must be followed to calculate what the UK taxable 
profit is.

It might be an idea for you to look at the UK/Poland double taxation 
agreement to see if there is any provision for exempting the income in 
the UK.

Cheers



-- 
Jon Griffey FCCA CTA
Hackett Griffey
Chartered Certified Accountants & Registered Auditors
2 Mill Road, Haverhill, Suffolk, CB9 8BD, United Kingdom

Tel (01440) 762024

www.hackettgriffey.com

See www.hackettgriffey.com/legal.htm for disclaimers

"Jon Griffey"  wrote in message 
news:4yXq$CGkVA8KFAmV@hackettgriffey.com...
> In article <B7GHm.24673$Ah3.2355@newsfe01.ams2>, Martin 
>  writes
>>Partly prompted by Jon Griffey's comments about this group (which I fully
>>share), here's one on which I would appreciate some informed advice.
>>
>>A UK resident has spent short periods in Poland in each of the last two 
>>tax
>>years, doing a bit of free-lance work.  She was obliged to submit a return
>>and pay Polish tax, but the Polish rules (in this instant) on 
>>tax-deductible expenses are very different from the UK's.
>>
>>The result is that her "taxable profits" (per Polish rules) in 07-08 gave
>>rise to a modest tax bill in Poland, but a load more UK tax to pay.  In
>>08-09 the position was reversed, and the Polish tax paid covers the UK
>>liability with ample room to spare.
>>
>>So - am I right in presuming that UK expenses rules must be applied in
>>determining taxable profits for UK tax purposes?  Or is there a provision
>>I'm missing, or even the option to elect which rules are adopted?
>>
>>TIA
>>
>>
>
> Indeed the UK rules must be followed to calculate what the UK taxable 
> profit is.

Thanks Jon - that's what I assumed, and have always done.  But the contrast 
between outcomes for the 2 years struck me as very peculiar.

> It might be an idea for you to look at the UK/Poland double taxation 
> agreement to see if there is any provision for exempting the income in the 
> UK.

Yes - BTDTGTTS.  It's definitely taxable in UK (with, of course, foreign tax 
credit relief).  It's a shame the "surplus" relief can't be offset against 
her other income :-)

Thanks for your time and comments.


-- 
Martin

"PeterSaxton"  wrote in message
news:c9ad6185-de3e-471a-b441-568c261fcf1f@v25g2000yqk.googlegroups.com...
On 2 Nov, 19:07, "Martin"  wrote:
> Partly prompted by Jon Griffey's comments about this group (which I fully
> share), here's one on which I would appreciate some informed advice.
>
> A UK resident has spent short periods in Poland in each of the last two
> tax
> years, doing a bit of free-lance work. She was obliged to submit a return
> and pay Polish tax, but the Polish rules (in this instant) on
> tax-deductible
> expenses are very different from the UK's.
>
> The result is that her "taxable profits" (per Polish rules) in 07-08 gave
> rise to a modest tax bill in Poland, but a load more UK tax to pay. In
> 08-09 the position was reversed, and the Polish tax paid covers the UK
> liability with ample room to spare.
>
> So - am I right in presuming that UK expenses rules must be applied in
> determining taxable profits for UK tax purposes? Or is there a provision
> I'm missing, or even the option to elect which rules are adopted?
>
> TIA
>
> --
> Martin

Dont UK rules always apply for UK tax?

You don't prepare accounts using tax rules. You prepare accounts and
then adjust them for the tax rules in Poland and UK.

-----------------

Thanks, Peter.  Yes - that's precisely what I had done.  It's the weird 
outcome that prompted me to ask the question - but I'm now reassured to know 
I haven't missed something.


-- 
Martin

On Nov 3, 12:17 pm, "Martin"  wrote:
> "PeterSaxton"  wrote in message
>
> news:c9ad6185-de3e-471a-b441-568c261fcf1f@v25g2000yqk.googlegroups.com...
> On 2 Nov, 19:07, "Martin"  wrote:
>
>
>
>
>
> > Partly prompted by Jon Griffey's comments about this group (which I fully
> > share), here's one on which I would appreciate some informed advice.
>
> > A UK resident has spent short periods in Poland in each of the last two
> > tax
> > years, doing a bit of free-lance work. She was obliged to submit a return
> > and pay Polish tax, but the Polish rules (in this instant) on
> > tax-deductible
> > expenses are very different from the UK's.
>
> > The result is that her "taxable profits" (per Polish rules) in 07-08 gave
> > rise to a modest tax bill in Poland, but a load more UK tax to pay. In
> > 08-09 the position was reversed, and the Polish tax paid covers the UK
> > liability with ample room to spare.
>
> > So - am I right in presuming that UK expenses rules must be applied in
> > determining taxable profits for UK tax purposes? Or is there a provision
> > I'm missing, or even the option to elect which rules are adopted?
>
> > TIA
>
> > --
> > Martin
>
> Dont UK rules always apply for UK tax?
>
> You don't prepare accounts using tax rules. You prepare accounts and
> then adjust them for the tax rules in Poland and UK.
>
> -----------------
>
> Thanks, Peter.  Yes - that's precisely what I had done.  It's the weird
> outcome that prompted me to ask the question - but I'm now reassured to know
> I haven't missed something.
>
> --
> Martin

Well, I'm no expert on that but it seems how accounts and tax
interacts. I've prepared accounts for poland tax authorities and UK
but only for UK income.