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Where Taxpayers and Advisers Meet

Tax on income earned abroad - self assessment

maria22
Posts:2
Joined:Fri Jan 20, 2017 2:15 pm
Tax on income earned abroad - self assessment

Postby maria22 » Fri Jan 20, 2017 2:24 pm

Hello there,

I moved to the UK in March 2015 from the Middle East and only received my UK residence card in December 2015.

From April 2015 I was contracted to work with a company and got paid into my account overseas. There are no invoices - I get paid based on timesheets supplied to the company.

I opened a UK bank account in March 2016 though there were no transfers from my account overseas though I have withdrawn money in the UK and whenever I travelled in Europe from my overseas account.

How do I proceed with paying Income Tax here. Any help will be greatly appreciated. Thanks!

SteLacca
Posts:448
Joined:Fri Aug 07, 2015 2:17 pm

Re: Tax on income earned abroad - self assessment

Postby SteLacca » Fri Jan 20, 2017 5:12 pm

If you moved here in April 2015 and have remained here then you are tax resident from the date you arrived, and need to declare your worldwide income in the UK for all periods since that date. The only exception would be if you are non-domiciled in the UK and claim the remittance basis. If you do claim remittance basis and your overseas income is more than £2,000 then you will have to pay the remittance base charge after 7 years (£30,000 per annum).

If you have suffered any tax overseas on the income you will be able to claim double taxation relief subject to the terms of the double taxation agreement.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Tax on income earned abroad - self assessment

Postby bd6759 » Fri Jan 20, 2017 7:01 pm

If the money was earned in the Uk, it is taxable in the UK. The remittance basis will not apply.

You must contact HMRC as soon as possible. You are already nearly 4 months late and may incur penalties. You should calculte the appximate amount of tax owed and pay that before 31 January.

https://www.gov.uk/undeclared-income

maria22
Posts:2
Joined:Fri Jan 20, 2017 2:15 pm

Re: Tax on income earned abroad - self assessment

Postby maria22 » Sun Jan 22, 2017 8:37 pm

Great thanks for letting me know! Should I register as self employed?

Appreciate all the advice!

Thanks a lot.

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Tax on income earned abroad - self assessment

Postby GlobalTaxAdviser » Tue Jan 24, 2017 1:59 pm

Hi Maria

Yes remittance basis will not apply unless you have any other non UK related income and are non domiciled

Yes do register as self employed

https://online.hmrc.gov.uk/registration ... troduction

Kind Regards

GTA


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