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Where Taxpayers and Advisers Meet

Foreign earned income/salary

bubu
Posts: 66
Joined: Wed Aug 06, 2008 3:24 pm

Foreign earned income/salary

Postby bubu » Sat Jun 08, 2019 8:55 am

Hi,

I am trying to do my tax return. I have been non-resident for tax purposes since 2011 but became resident in the UK again in 2018/2019, before leaving UK again in the same tax year. Split year applies. However, because I then departed the UK in December 2018/2019, to work full-time overseas again, I cannot have 2 split year cases. I haven't informed HMRC yet that I was became resident again but will need to declare it on my tax return. But they have already sent me a tax return as I have always completed tax returns due to renting out a property in the UK.

Re: going to work abroad again In 2018/2019, I moved abroad and worked overseas from December 2018 to April 5th 2019 and I still work abroad so am non-resident again. However, I think I would need to declare my overseas income for those four months (Dec '18 - April '19) and that UK tax would be due on it too. Is that correct? If so, I do not know where I would make such entries on my tax return. I did not work at all in the UK during my 6 months when I was back, before leaving to come overseas again. Does HMRC need to send me other pages? My tax return consists of property page, banking interest page, non-residence page. Would I need the Employment pages even though I didn't work in the UK? What about my foreign income? How do I declare that for the four months I worked overseas from Dec '18 - April '19?

Regards,

bubu
Posts: 66
Joined: Wed Aug 06, 2008 3:24 pm

Re: Foreign earned income/salary

Postby bubu » Sun Jun 16, 2019 3:52 am

Maybe I should simplify:

I became non-resident again when I retuned to work overseas after returning to the UK and having 6 months rest.

As I cannot claim split-year twice, I believe my earnings from my foreign employment between December '18 to April '19 are liable to UK income tax.


If so, where would I declare that income on my tax return? Is it on the Foreign page or Employment page? (neither if which I have and need to print off)


I am not self-employed, and I work for a foreign company overseas full-time.


Many thanks.

darthblingbling
Posts: 253
Joined: Wed Aug 02, 2017 9:09 pm

Re: Foreign earned income/salary

Postby darthblingbling » Sun Jun 16, 2019 9:59 am

You're right in that split year won't apply for departure.

Likely the income will be exempt by treaty... maybe, it will depend on the facts:
- where did you move to
- does a double tax treaty with the UK exist there that has the standard OECD model employment tax article
- were you tax resident there between the moment you arrived and 5 April 2019
- does the residency article make you treaty resident there for that period

If so fill in HS302 and attach with the tax return.

bubu
Posts: 66
Joined: Wed Aug 06, 2008 3:24 pm

Re: Foreign earned income/salary

Postby bubu » Mon Jun 17, 2019 2:52 pm

Thanks for the reply.

I lived China for many years then I returned to the UK, albeit temporarily for 6 -7 months. I then returned to China to work and live in November '18 to April '19. I am still working and living here.

I don't really know what the other criteria you mentioned mean.

Do you mean, that as I moved out to China and became non-resident, that I may not need to pay UK tax on my income from November to April?

darthblingbling
Posts: 253
Joined: Wed Aug 02, 2017 9:09 pm

Re: Foreign earned income/salary

Postby darthblingbling » Mon Jun 17, 2019 2:56 pm

Honestly, have a crack at filling in HS302 first, it guides you through it.

bubu
Posts: 66
Joined: Wed Aug 06, 2008 3:24 pm

Re: Foreign earned income/salary

Postby bubu » Mon Jun 17, 2019 3:37 pm

Thanks darthblingbling. I will take a look at it.

JimLittle
Posts: 5
Joined: Thu Nov 19, 2015 6:36 pm

Re: Foreign earned income/salary

Postby JimLittle » Tue Jun 18, 2019 9:06 pm

Babu

You would need to complete the SA109 pages which are not available on the HMRC software

With the number of questions on this forum you keep asking recently (some very basic) you clearly need an accountant to ensure you do make any errors which could prove costly in future

There are several complexities when dealing with residency and difficult to answer on a forum

Jim


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