Hello everyone,
I'm curious about how the tax-free personal allowance functions in situations involving double taxation agreements.
For instance, if I'm self-employed in the UK for part of the year within the tax-free personal allowance and then work self-employed in another EU country, would the EU country expect me to pay full local tax on my UK earnings, considering I haven't paid tax there due to being within the tax-free allowance?
I have read sources that say that earnings within the tax free personal allowance is still actually taxable income at the rate of 20% or so but the personal allowance just means you don’t have to pay it.
Thank you all in advance