- Published:September 30th, 2008
- Comments:No Comment
- Category:Pages
Recently I received a letter from the States of Guernsey Income Tax stating that they had noticed my return to Guernsey I had been working in the UK. The letter further asked for details on my income. I was quite dubious about this so decided to phone up the administrator for that department and to my horror he said that I owed the income tax money for not claiming it on my worldwide income. I was quite angry at this as never had I ever heard such a thing.
I then went on to seek legal advice where I was there is a double taxation agreement with the UK to avoid this kind of problem via one of two methods. The first method allows the local tax authorities to chase the UK tax authorities and claim the necessary tax back. This is a bad idea. Why? Because the local tax authorities will only claim back the total amount they require based on your earnings. The second method is to claim the tax back yourself in full, then only pay the local tax authorities the total sum that you owe them, which is a better idea, but it means you must go to more effort yourself.
I’ve spent numerous hours researching and corresponding with various individuals on the matter and eventually entered legal advice which ended up being quite bad. The said company actually told me I owed absolutely nothing, which was in fact wrong. This is where things get confusing.
The UK tax year and the Guernsey tax year differ which is why things get really quite confusing when it comes to tax. The UK tax year 1 starts in July and ends on the last day of March whereas the Guernsey tax year starts on the first day of the year and ends in late July which is why earnings etc. are calculated differently between the two places.
If you are a student studying away from Guernsey in the UK and have worked this will most probably cause you issues.
I’ve now had to send off a P85 form to the following address (and please take good note of it):
FICO Non-Residents
St. Johns House
Merton Road
Bootle
Merseyside
L69 9BB
Once you have sent off this form (I’m about to do this tomorrow) it will take roughly six weeks to claim the money back if you’re fortunate enough to have easy service. Basically, don’t succumb to the local tax authority in Guernsey, because the phone call I had was atrocious where I was told that the authorities "don’t care" what I earned and when, just that I owe them money which is a real shame. My brother has unfortunately fell victim to this insanity and has paid the local tax authority thousands of pounds. Note that they will not give any advice or information about claiming the money from the UK tax authorities, they just leave that completely down to you, and the information isn’t easy to get either. I received my letter on the 5th September 2008 and I’m just about to send the letter off to the UK on the 1st October 2008. Yes, it took me almost an entire month to gather all the details required, bearing in mind that the local tax authorities send out a letter after four weeks having not heard anything from the recipient.

