Ukrainian citizen working for Ukranian company

Hello, Admin Please help me with some qyestions I came to the UK under the Home for Ukraine scheme on Sep 2022, and stayed in the UK for 186 days in the 2022/2023 tax year. Until May, 2023, I did not have my own accommodation in Britain, I lived in a Sponsor’s From May 2023, I have been renting accommodation. I am here with my daughter, but my home, husband, parents, and job are in Ukraine, and I plan to return as soon as it is safer. My daughter continues to receive education in a Ukrainian school while also attending a British school. I do not have any income in the UK. As an employee of a Ukrainian company, my income is a salary for which my employer withholds tax in Ukraine. I receive the salary on a card issued by a Ukrainian bank (it is legally prohibited in Ukraine to receive it in an account outside of Ukraine). My employer is a Ukrainian legal entity that operates within Ukraine with Ukrainian clients and provides all its services within Ukraine to Ukrainian clients. I work partially remotely, with systems located in Ukraine's office. Periodically, I am required to return to Ukraine for 2-3 weeks because some of the work cannot be done remotely. My partially remote work complies with Ukrainian legislation and the company's rules. The tax authority in Ukraine continues to consider me a tax resident of Ukraine, despite any certificates from the UK. The Ukrainian Tax Authority is willing to provide me with a certificate stating that I am a tax resident of Ukraine. In Ukraine, there is no mechanism for receiving a salary without automatic tax withholding, and there are no mechanisms or precedents for refunds. Also, during the martial law in Ukraine, all transfers of funds outside of Ukraine are completely prohibited, except for card spending and minimal ATM withdrawals (I won't be able to pay taxes and similar expenses from a Ukrainian account in principle). Questions 1. Do I have to file a UK declaration for 2022/2023 (my income as employe in Ukraine is more than £30,000 per annum) 2. Am I entitled to a tax credit for the amount paid in Ukraine? 3. Am I eligible to use the non domicile status and claim the remittance basis 4. Can you tell me if I have to pay NIC and at what rate? 5. What to do in the situation of prohibition of payments abroad from my Ukrainian account, where my funds are located due to wartime restrictions at the state level. Thank you

Hi,

 On the basis of the information you have provided, you were tax resident in the UK in 2022/23, and you should therefore declare your foreign income, that is your Ukrainian employment income and claim credit for the Ukranian tax deducted, through Foreign Tax Credit Relief by completing a 2023 Self Assessment tax return. Youi can see guidance here:

Tax on foreign income             

You are potentially eligible to claim the remittance basis, but you may wish to consider whether it suits your particular circumstances by looking at the guidance here:

Remittance basis 2021 (HS264)

As regards your NIC query, please contact our National Insurance team:

National Insurance: general enquiries
                                                                                       
HMRC is unable to comment on the prohibition of payments abroad from your Ukrainian account, as that is a matter for the Ukrainian authorities.

Thank you.