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Where Taxpayers and Advisers Meet

Self-Employment Income Tax

ee223344
Posts: 2
Joined: Sun Jun 16, 2019 4:57 pm

Self-Employment Income Tax

Postby ee223344 » Sun Jun 16, 2019 5:24 pm

Hi All,

My case is a little tricky and I haven't heard any similar cases to refer to. It would be extremely helpful and kind of you to give me some guides.

Since mid 2017 I have been freelancing via a British agent. Because I have been in a relationship with a EU girl in the UK (who is now my wife :D), I travelled back and forth between my home country and the UK (I am from a non-EU country) every three months. So I continued freelancing even during my stay in the UK as a traveller, and also all my income has been transferred to my British bank account. In November last year, I started staying in the UK as a EEU family member, and in April this year I got my BRP. I am now looking for a full-time job while still freelancing.

My question is: Which part of my income from mid 2017 till now is taxable in the uk? I am sure that ever since I got my BRP, my income has been taxable. But what about before that BRP? Like when I freelanced as a traveller from mid 2017 till November last year before I got my EEA family permit? And also after I held my EEA family permit till BRP was issued?

Thank you so much for your time and answers in advance.

Regards,

Jin

AGoodman
Posts: 854
Joined: Fri May 16, 2014 3:47 pm

Re: Self-Employment Income Tax

Postby AGoodman » Wed Jun 19, 2019 6:21 pm

Your tax residency and immigration status is entirely separate.

Tax residence depends on your links to the UK (home/family/work) and the time you spent in the country during the tax years 2017/18 (6 April to 5 April) and 2018/19.

I would be surprised if you were not tax resident in the UK (and so liable to income tax and national insurance on all income) since at least 6 April 2018 - possibly earlier - but you could be lucky.

The rules are set out in great detail in RDR3:

https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt

Be sure to clarify quickly as the Home Office have been using tax errors against non-citizens. Probably best to run it all past a local accountant.

hendersontax
Posts: 26
Joined: Wed Jun 19, 2019 5:04 pm
Location: Manchester
Contact:

Re: Self-Employment Income Tax

Postby hendersontax » Wed Jun 19, 2019 7:23 pm

I strongly recommend you seek advice on this. Your starting point should be that earnings for duties physically carried out in the UK will be taxable here regardless of your residence status, unless you have some protection under a double tax treaty. And as noted above it sounds like at some point you will become tax resident in the UK under the Statutory Residence Test - from this point forward your worldwide earnings will be taxable in the UK unless the remittance basis of taxation applies (though you mention all of the income has been transferred to the UK, so this will not help you) or you can get relief under a treaty.

Assessing your residence status alone is likely not to be straightforward if you are moving frequently to and from the UK and you should seek professional advice as soon as possible - if you have unpaid tax for the 2017/18 tax year (that is, the year ended 5 April 2018) and you haven't filed a tax return for this year when you should have done, you are potentially looking at penalties for failure to notify chargeability. These are much lower if you disclose your circumstances to HMRC before they get to you, so you should act quickly. Happy to help if you PM me.

ee223344
Posts: 2
Joined: Sun Jun 16, 2019 4:57 pm

Re: Self-Employment Income Tax

Postby ee223344 » Thu Jun 20, 2019 9:43 am

Thank you both for your answers!


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