Self Assessment After Working Abroad for Part of the Tax Year

[robertiac1]

My daughter has asked me for help. My Son-in-Law worked a full UK tax year in Sweden at the request of his employer, and my daughter worked 8 months in Sweden and 4 Months in the UK. They jointly own a property in the UK which was rented out for 7 months. They notified HMRC of this before they left for Sweden. Both completed the Swedish Tax Return and this included the rental income and Swedish employment and after mortgage interest relief rental income was taxed at 30%.

With respect to my daughter filling the employment section for the UK job is straightforward. The second employment was in Sweden, and the UK self-assessment second employment form refers to P60 and P45 and UK tax, which does not seem to apply to a second employment abroad.

So my daughter contacted HMRC who said she needs to fill in the Foreign pages. But these pages are oriented to people in the UK receiving interest from overseas savings, dividends from foreign companies and income from overseas pensions and property. Indeed there is no box for Pay from Employment on the foreign pages.

Page F6 says makes provision for "Foreign tax paid on employment, self-employment and other income If you’re claiming Foreign Tax Credit Relief on income included elsewhere in your tax return, fill in the columns below and sayin the ‘Any other information’ box (on page TR 7) where on your tax return this income is included."

But where should this should this Swedish employment income be entered? Is correct that both the UK employment income and the Swedish employment income needs to be entered?

I would be most grateful for advice.

Robert Clark

[bd6759]

Employment income goes on an employment page. It doesn't mater where it was earned. You don't enter foreign tax on the employment page under PAYE (because it is not PAYE tax). The foreign tax goes on the foreign page, with a note in the additional information box referring to the employment page.

The property income is taxable in the UK.

[robertiac1]

Thank you very much for your help - I think that has sorted out my daughter.

I am sorry to ask a followup, but with respect to my son-in-law his Swedish contract ran from 15th March 2017 to 31st March 2018 and he resumed work with his UK branch on 1st April 2018. During the UK tax year 2017-2018 he was present in the UK for 42 days, and of that 5 days (1st April 2018 to 5th April 2018) were with the UK employer.

The HMRC tool for establishing Residence Status does not seem to be working but the summary flowchart at

http://www.blplaw.com/media/how-can-we-help-you/private-client/BLP%20Summary%20flowchart.PDF

in the third bar down "Works abroad full-time & fewer than 91 days in UK & of those fewer than 31 days working in UK in current tax year" it would appear that my son-in-law was not UK resident for tax purposes in the 2017-2018 tax year.

Does that mean that in his self-assessment he does *not* have to declare his Swedish employment income, but *does* have to put down the rental income from his UK house, and since this was declared and has already been taxed by the Swedes he can claim Foreign Tax Credit Relief?