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Tax and NIC offset
My client is self employed and is resident in the UK, but is currently working in India. Although the Indian tax authorities recognise that he is self employed, they deduct a withholding tax from his earnings. I have tried to get this tax reduced or removed, but have not been able to do so.
Tax and NIC offset
My client is self employed and is resident in the UK, but is currently working in India. Although the Indian tax authorities recognise that he is self employed, they deduct a withholding tax from his earnings. I have tried to get this tax reduced or removed, but have not been able to do so.
The Inland Revenue is offsetting the Indian tax paid against his UK Sch D, Case I tax liability, thereby reducing it to nil, and there is a surplus of foreign tax unrelieved. However, Class 4 NICs are still being charged in the UK.
Can the surplus foreign tax be offset against the Class 4 NIC liability?
(Query T16,543)
