DCNI/DNPI for foreign employment with foreign pension fund scheme

Hello there, I have moved to the UK from Hong Kong in June 2023 and I continue to work for my Hong Kong Employer remotely in the UK since then (and until now). My HK employer was a company established in Hong Kong, it has no business activities and no establishment (branch nor office) in the EU/UK, and my HK Employer does not plan to have any in the future. I receive my salary from my HK Employer, through a bank in Hong Kong (no money is paid through banks in the UK). Both my HK employer and I make monthly contributions to the Hong Kong Mandatory Pension Fund (hereafter the “HK MPF”), HK MPF is registered and operated in Hong Kong only. I usually receive my monthly salary after deducting the monthly HK MPF contribution (i.e. I only receive net payment in each month). My question is, under the following circumstance, (a) I am an “employee” under a foreign employment (Hong Kong); and (b) I am currently “making contribution” to my existing HK Mandatory Pension Fund scheme under a “Hong Kong employment” (although I am working from my home in the UK), Do I still need to apply for DCNI/DPNI scheme in the UK? Thank you.

Hi Mko,
You can apply for the DPNI scheme so that all charges are taken at source.
If not, you need to declare the income as employment on the Self Assessment tax return.
Thank you. 

 

Thank you for your kind reply. However, I do not understand very well:- (1) I am confused because I do not quite understand the terms “all charges are taken at source”. You mean the source is my Hong Kong employment and my employer in Hong Kong needs to pay National Insurance for me? But the fact is that they do not have any business or establishment in the UK, could you please give some more explanation on under what circumstances (rules) they have the obligation to do so? (Because I may need to give them a good explanation for doing so). (2) It is also mentioned that “If not, you need to declare the income as employment on the Self-Assessment tax return.” So does it mean that if I HAVE DECLARED the income as employment income from Hong Kong on the Self-Assessment tax return, then I am NOT required to pay National Insurance? Is this correct? Thank you again for your kind explanation.

Hi,

We can only provide general information and guidance on this forum.  If you require a more detailed expanation, you would need to contact our Self Assesment team using the link below or seek professional advice.

Self Assessment: general enquiries

Thank you.