Reporting Foreign Income - Self Assessment

[taxman1977]

Hi

I am currently filling out my HMRC self assessment online, and am confused on how to report foreign income. I received less than £1000 from the USA last year, (and the company that paid me has a W8-BEN on file.) Also received about only £60 from Ireland. I would class the type of income from the USA as sales commission/royalties.

On the foreign income page, you are presented with the following options to choose from, and ideas why one is relevant in my case?

Which of the following types of income or gain did you receive from overseas sources?

1) Interest and other income from overseas savings (Optional)
2) Dividends from foreign companies (Optional)
3) Overseas pensions, social security benefits and royalties etc (Optional)
4) Dividend income received by a person abroad (Optional)
5) All other income received by a person abroad and any remitted 'ring fenced' foreign income (Optional)
6) Employment, self-employment and other income which you paid foreign tax on (Optional)
7) Capital gains (Optional)
8) Any other overseas income and gains (Optional)
9) Income from land and property abroad (Optional)

[robbob]

It might be worth ringing the hmrc helpline to clarify if the income is covered by the " £1,000 miscellaneous income exemption" that is granted in the same manner as the trading allowance and also what box they would want you to use. it could be that this income does not need to be declared.

If this was uk miscellaneous income under £1,000 of the commissions/royalties type - the income would be tax free and not need to be declared, similar exemption would apply if it was a trade.
This is presuming same exemption has not already been used by other similar income.

It would seem inconsistent if the same income type was not covered by the exemption purely due to the reason it was foreign - but hey hmrc aren't always consistent- i do know for foreign property income the 1k exemption is available.

confirmation of available exemption for uk income on TRG8
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/687369/sa150-notes_2018.pdf

[taxman1977]

Thanks Robbob!