My client has worked in Germany and they were paid in euros. One payment has had tax deducted and the other payment from a different company has had no tax deducted.
So, how do show these in his accounts? I was going to convert to pounds, then post as income but am stumped as to how I would show the tax paid.
Hi Georgie,
you may want to look at the double taxation rules. In essence if someone is UK resident but work abroad they will be taxed under UK tax rules, however it is possible that they have already been taxed in the country where they earned their income so the double taxation arrangements come in to force. Here's a link:
