# Sticky tax situation UK / Spain



## Spanish Ken (Jun 3, 2021)

Hi guys,
I'm in a bit of a sticky situation with the Spanish taxman I was hoping someone here might be able to point me in the right direction. When filing my tax return here last week I discovered that I had been sent a letter to my previous address asking me to pay tax on income from the UK I hadn't declared. It was quite high, more or less 40% of what I earned. 

Now I have a letter telling me to do a return for 2017, 18, 19 and I think need to include my UK income in this. (the)

My question is does anyone know what documentation is need to prove I have paid tax/emergency tax in the UK?

Covid has hit hard and this couldn't be coming at a worse time, any advice would really be appreciated.

Thanks


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## kaipa (Aug 3, 2013)

I am being investigated too. You are not alone! You have 10 days to contact them from the signing of the Black letter. That's all I know.


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## MataMata (Nov 30, 2008)

If you've been living here since 2017 then you should have done a return then and for each year since. Year four is often the time the Hacienda contact people because general speaking that's as far back a they can go so anything they have suspicions about they can - and do - flag to be investigated before that period expires. I already know a couple of people who have been caught like that.

If you were employed by a UK company then you should have received annual P60's which would say what you earned and what tax you paid however unless you're an offshore worker, or in one or two other special groups, paying PAYE tax in UK does not exonerate you from paying tax in Spain so proving what you paid there isn't going to help as it's your gross earnings which will need to go down on the missing Spanish returns.

Worst case they are going to demand tax on the full whack of what you failed to declare and on top of that will likely impose a hefty penalty which could be as much again or even more if they suspect deliberate evasion.

On a plus note if (or, sorry to say, more probably when) you have been clobbered by Spain you may be able to claim back some, if not all, the tax you paid in UK.

It will be of no comfort to you I'm sure but I think a lot of people who have been forced to put their heads above the parapet because of Brexit are going to be coming under the Hacienda's microscope!

Note, legally resident or not as far as the Hacienda are concerned the date an individual signs on a padron is the date their residency began.

Good luck!


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## Spanish Ken (Jun 3, 2021)

Thanks a million for your reply. I had heard that there is a double taxation agreement but I think it was wishful thinking on my behalf that it applied here. 

Hopefully they will allow me to pay in installments. 

Thanks again.


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## MataMata (Nov 30, 2008)

Yes there is a dual tax treaty but it's not for these sort of situations.

It's what may eventually get you back some of the tax you've paid in UK but only that.


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