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Tax for Crossborder Workers (Covid)

Question

I changed jobs at the start of the year, employed by a UK company in London but maintained residency in Belgium as I have a house here where my family also stays. Under normal circumstances, I do a weekly commute, BRU-LDN Eurostar Mon mornings returning on Thur / Fri.

I have not been able to travel since March due to the lockdown as well as the closure of our office hence I have been working from home (Belgium). Belgium has reached an agreement with countries immediately around its borders to exempt any of its residents employed in those countries from being taxed in Belgium as they work from home during this period. However, there isn't such an agreement with the UK, Spain, Italy, etc. From what I have read, I will now be expected to pay Belgian taxes as I will soon be exceeding 183 days spent in Belgium this year.

Our office will re-open for staff to return on a voluntary basis on Sep 1 (1% of staff have opted to return) so I may try to commence my commute to avoid a huge tax bill. I will be speaking to the Tax Manager from my workplace next week to find the best possible solution. In the meantime, does anyone have any guidance they can share?

Many thanks

stevey7

*Missed a word there "I'm now covered in the UK where I continue to pay..."

Jan 5, 2021 17:03
gronman

@Stevey7 – Sorry I don't get any notifications either (not possible?), but many thanks for your reply. I was still hoping the tax office here would take the Covid situation into account for the next tax return (a tax adviser I spoke to here wasn't sure what they'll do) but probably good to prepare for having to pay some extra hefty taxes here.

Hopefully an HMRC refund won't be too complicated – perhaps keep this thread open and share experiences down the line when the 2020 tax return is due, as @Big_Lebowski suggests?

I'm in a different situation from you in that I'm actually paid a salary in both BE and the UK, and also pay social security in both countries. I guess I could apply not to pay it in the UK but would rather keep my NI history intact.

Jan 30, 2021 20:22
stevey7

Hi @Gronman and @Big_Lebowski, I hope you are well. Just checking if either one of you has received tax advice different to what the Tax Manager communicated to me for the 2020 declarations. Btw, I'm still waiting for a response to my 2019 declaration. I submitted by declaration last May, I hear they have till the end of June to write back to me. It's a year when I worked full time in Belgium for a Belgian employer in Q1 before changing job working for UK employer in London hence my weekly commute... My guess is that they deprioritise such files and work on the 'easier' ones first. Thanks

Apr 20, 2021 17:37

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