German tax return - paperwork from UK needed?

Hello

I am obliged to file a tax return next year as I have worked briefly as a freelancer this year so my question is: will the finanzamt require any paperwork from the UK about previous year’s tax returns done in the uk for example? Or any other stuff that I should start to get together now? (I’m a UK citizen btw).

Cheers

You are obliged as an individual resident in Germany to meet tax-reporting obligations, to report all your income and so on. The type of work you might be doing since coming Germany (freelance or whatever) does not drive that obligation as such. Thus, all your income from 1.1.09 will need to be reported to the German tax authority - doesn't matter where it was earned or whether you were actually resident in Germany.

The German tax year and UK one are different of course. For Germany, you will have to report all income earned from 1.1.09 wherever earned and wwhatever source. This could include employed income earned from a job in the UK before moving here (and after of course), freelance income, bank interest income, other investment income from such as shares / funds, property rental income etc etc.

If you happen to have paid tax in the UK in 2009, that must also go on your forms in order to calculate your tax liability here (generalising but it'll be offset under double tax, and thus reduce your liability here, probably).

hmm ok thanks for your reply.

I moved to DE in april 09 and paid tax in the uk for tax yr 08/09 so if i understand you correctly, i should include some proof of what was paid in the uk last yr so they can use what i earned & was taxed between jan-march 09 to assess my liability on earnings in DE april onwards?

thanks again

No.

Germany is interested in everything you have earned from 1.1.09 because that's how Germany's tax year runs. Forget how the UK tax year works or its timing because in the immortal words of our new Vice-Chancellor, this is Germany. You reside in Germany, not the UK. As a consequence you pay German taxes according to german regulations.

As a tax resident in Germany for 2009, your obligation is to Germany. Your liability covers 1.1.09 to 31.12.09. So you have to report all your earning in that period - including those earned and / or taxed in the UK. Not just earnings since you moved here or not taxed in the UK. The whole lot earned since 1.1.09 needs to go on your tax return.

Finanzamt will then decide if you have any further obligation than you paid under UK rates.

ok got it. thanks. that's when the double tax agreements come into play then...hopefully! so i don't get taxed twice on money earned between jan-apr 09. i guess depending on what they decide, i could then apply to the inland rev for the money already taxed abetween jan-apr if will pay it again in DE or the FA will not tax me for that period if they think i have paid enough in the UK or they will decide to take tax at a higher rate than i paid in the uk and i will owe them some anyway.

a lot of hassle since i will be moving back to the uk in dec after just 9 months in DE, but i guess that's the way it goes.
ah the joys of tax!! like you say that's just the way the system runs here & although it would be more convenient for some expats if the tax yrs were the same, i have to admit it makes more sense the german way...

thanks again

The "fun" could come with the overlapping months between UK tax year & the German one.

The difficulty might be in persuading the German Finanzamt how much UK tax was "before/after" the German tax year. Depending on where you are you may find them to be a devious bunch. Reciprocal taxation agreements are a matter for interrpretation in some places. For instance, the German Finanzamt only counted 50% of the UK taxes I'd paid on UK investments (they only wanted to count 25%) on the grounds "here they would not be liable for tax hence we dont recognised that you paid any".

As regards paperwork. Your UK tax return is enough.

yes, HEM, i've heard about the rather free interpretations of double tax agreements...fingers crossed on that one...

Yes, I should add..the inference should not be that Germany will ask for more tax on income taxed before moving here, I don't know anyone that's happened to. Just that you have to declare all income.