Polish workers to be relieved of double taxation

Polish workers will no longer be paying double tax on their earnings after a deal was brokered between the UK and Polish governments.

Before now, Polish nationals working in the UK were paying tax in the UK, and then a high level of tax on the same earnings when they returned to Poland, says the TUC. The South-West TUC led the campaign, and says that tax paid in the UK will now count against Polish tax, reducing the financial burden on these workers.

However, some in the industry believe it will have little impact on Polish workers in the UK construction industry. A source said: "My guess is that for many, tax is deducted at source in the UK, and income isn’t declared when they return to Poland, so I don’t think it will have a huge effect. It is probably more of a tidying up exercise rather than a real relief of the burden."

The new double taxation Convention between the UK and Poland was signed in London on 20 July and will come into force once both countries have completed their legislative procedures. The provisions will take effect in the UK from the following April, and in Poland from the following January.