1752 and all that. ProACT Sam Orgill jumps to it at the start of a new season, new year and new tax returns due.
OLD WAYS
Call me old fashioned but happy new year 25th March.
Before Christianity the calendar was based around the seasons – the equinox.
Spring is planting time and the start of a farming cycle and so was considered the start of the year.
Hence the spring equinox 25th March was the start of the year.
ROMAN WAS BUILT ON 10
The Romans adopted this and used 10 months in a year – like the Romans would. Hence the name of the 7th, 8th, 9th, 10th months of the Roman calendar based upon Roman Latin numbers septem , octo, novem , decem.
July and August are named after Julius Caesar and his son Augusta the first two emperors of the Holy Roman Empire of the West based in Roman.
As opposed to the Holy Roman Empire in the East based in Constantinople which survived as the Byzantine empire until the 1450’s and left an Orthodox Christian legacy in the East.
The Christian’s rallied around this 25th March and Lady’s day annunciation became the day of conception for Mary, 9 months before baby Jesus birth.
The significance of the Easter holiday period around this time of new year is a reflection of the history of it being the new year carried over in traditions.
BREXIT BRITAIN NOT FULLY INTO EUROPE
Until 1752 Great Britain kept March 25th as New Year’s Day, and the Persians still do.
In Europe the change to January 1st came from a Catholic pope Gregory in Rome in 1582 introducing a new working calendar to get the days of the year aligned and more accurate to the seasons.
Over the centuries the imprecise Julius Calendar had allowed the dates to lose sync with the seasons. The equinox of the solar system and hence the seasons were not aligned with the calendar dates anymore.
The error of days built up over the centuries was to be corrected and the new Gregorian calendar also switched 1st January as New Year’s Day and introduced the leap year concept in a new month, February – shortened in days to stop previous error of lost days accumulating.
TAXING ISSUE
In Great Britain the switch did not bring quiet on new year day but had an unintended consequence leading to riots and protests.
It was almost like the politicians didn’t know what they were doing in Britain – back then as well.
The tax year was also New Year’s Day in the Great Britain.
The calendar year lost 11 days from September 1752 as a one off adjustment to realign the calendar.
The shorter year was seen by the people as a way of increasing taxes for that year.
A compromise solution was finally added with the UK tax year for 1752/1753 extended to a year end 5/4/1753.
11 days later.
Of course they would adjust and correct it in time. Sometime not year.
So till 2025 the UK tax year remains 5th April.
NEW TAX YEAR – FULL YEAR RETURNS DUE
At the end of a tax year new tax returns become due now.
UK tax returns can be submitted from the start of April.
A UK tax return is due if you have any fixed income from the UK including property rental income and capital gains on sales of UK property and crypto and shares or business.
In addition if the UK tax office ask you to complete a return then you must – even if nil.
Changes to domicile and non domicile rules also apply increasing the scope and requirements for UK domiciled expats to have an inheritance tax return completed on worldwide assets on their death.
Remote working expats could have obligations for tax returns in the country of employment and their tax residence.
CYPRUS TAX YEAR END IN SYNC
The Cyprus year ends on the December calendar year but returns become due from March also.
There are more changes this year so again it’s a moveable deadline. Assume individuals should complete by July and audited business by next March to be sure.
This year if your ‘income’ for income tax in Cyprus is below EUR 19500 you don’t have to complete a tax return
The complication is numerous and listed below. If in doubt, contact us to confirm your requirements.
If you died or sell property or gift property to family or trust to avoid UK Inheritance Taxes then the Cyprus Tax office will require at least the last 5 years full tax returns to be completed.
For this reason ProACT advise all expat clients to complete a tax return in Cyprus each year.
Special fixed rate taxes applying to incomes requires tax to be paid by self assessment return and maybe in a full tax return for property rental, dividends, interest.
Also the ‘health tax’ which is due on all worldwide income from whatever source.
If you are a self employed or contractor business or a Cyprus company then a tax return must be completed each year.
This is in addition to your VAT and Social insurance obligations.
If you have Cyprus property rental income including using AirBnB then you need a tax return. Any owner of a Cyprus real estate must now have a Cyprus tax number even if they are not Cyprus tax resident as individuals.
DON’T WORRY ABOUT YOUR HEALTH
If you are an expat Living and Working Abroad in Cyprus, then you do not automatically qualify for the Cyprus State Healthcare GESY
To receive GESY cover you must pay Cyprus social insurance, receive a transfer of health benefits from the UK or your home EU country, be a permanent resident or be receiving UK, CY or EU state pension.
DON’T WORRY ABOUT STATE PENSION
If you are Living and Working Abroad and want to top up UK pension contributions then you can. It’s a difficult process for secured income for anyone who has worked more than 10 years in the UK.
Contact us for state pension top up advice, registration, returns and payment
www.proactpartnership.com/contact-us
For more information and guidance explore our world at www.proactpartnership.com for expatriate advice Living and Working Abroad
www.proactpartnership.com
www.proactpartnership.com/contact-us
TEL EU Cyprus: +357 26 819 424
TEL UK : +44 1753 27 2116
