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Where Taxpayers and Advisers Meet

Employment page or Foreign page?

bubu
Posts: 63
Joined: Wed Aug 06, 2008 3:24 pm

Employment page or Foreign page?

Postby bubu » Sun Jun 09, 2019 7:34 am

Hi,

I was non-resident in UK from 2011 to 2018, then left my job abroad and came back to UK in May 2018.

I became resident in the UK from May till Deceber 2018.

I departed UK in December 2018 and have become non-resident in the UK again as long as I stay overseas in full-time employment until at least April 6th 2020.I can claim split-year from April 6th 2018 until my return to the UK in May 2018. As I cannot claim split-year twice, what happens about the period I worked abroad from December 2018 to April 5th 2019? I believe I would need to declare that income on my tax return. However, which additional forms should I request from HMRC? Employment or Foreign pages?

I ask as I read on the Foreign notes for a previous year, "Don't use the 'Foreign' pages for: ..... foreign employment income - use the 'Employment' pages."

Additionally, I have already got my tax return for 2018/2019, (I already do returns because I rent out a property in the UK) but I didn't inform HMRC I was back in the UK for 6 months. Do I need HMRC to send me a new tax return, or do I just need to request additional pages?

I am very confused.

Many thanks.

hendersontax
Posts: 6
Joined: Wed Jun 19, 2019 5:04 pm

Re: Employment page or Foreign page?

Postby hendersontax » Wed Jun 19, 2019 5:37 pm

It doesn't sound like you will be eligible for split-year treatment in 2018/19 at all in your circumstances. If you were/are non-resident for each of 2017/18 and 2019/20 then split-year treatment is only possible where you start to have your only home in the UK for the rest of the tax year or you commence full-time work for 365+ days - neither of would seem to apply if you left the UK again in December 2018.

Assuming you are UK domiciled and the remittance basis is not in point, you should then consider whether you can get treaty relief for the periods in 2018/19 when you were outside the UK - you'll need to refer to the treaty (or treaties) between the UK and the country/countries where you were resident to see if you can exclude the income for non-UK duties for the periods where you were treaty resident overseas. If you need to make a treaty claim, you should do this on helpsheet HS302. Where no treaty claim is possible you should look to claim a foreign tax credit - in this case you will need the foreign pages (but not otherwise, unless you have other foreign income to report). In any case you will also need the non-resident pages. Note that if you're filing on paper you should do this by 31 October 2019 and you cannot file the non-resident pages using HMRC's software.

I'd strongly recommend that you seek professional support on this to ensure you report everything properly and claim the relief you're entitled to. Happy to help if necessary.

bubu
Posts: 63
Joined: Wed Aug 06, 2008 3:24 pm

Re: Employment page or Foreign page?

Postby bubu » Thu Jun 20, 2019 7:34 am

Thanks for the reply.

Would it make any difference to my being able to claim split-year if my last day of emplyment was 31st March 2018, tax year (2017/2018), or, does it just matter that I returned to the UK in May, (tax year 2018/2019) which is a new tax year, ans so therefore I count myself as non-resident for tax purposes until May 2018?


Also, regarding treaty reliefs, my company overseas does taxes in a way that seems quite normal in China. Thay actually declare x amount, and pay the taxes for me, then the rest is a bonues, but basically I get a set amount and it is after tax. We don't even get payslips. I am going to guess that, based on that, I probably won't be able to claim treaty relief as I do not even get pay slips and I get paid a fixed amount with i tax taken off from my salary. The owner of this school said it comes off before I am paid, yet they declare my salary to be lower than it is, so THEY save having to pay too much tax.

Based on that, can I still get treaty relief? I presume not. What are my options?

Many thanks.

darthblingbling
Posts: 228
Joined: Wed Aug 02, 2017 9:09 pm

Re: Employment page or Foreign page?

Postby darthblingbling » Thu Jun 20, 2019 7:56 am

Seriously get a professional to file for you on this one occasion, you've asked close to a hundred questions on the matter.

May give you some piece of mind.


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