Ukrainian Income UK Tax

Hello! I would like to clarify somedetails about taxation of my Ukrainian Income in the UK. I came to the UK by Homes for Ukraine scheme, but I continue to work for Ukrainian company and pay taxes in Ukraine. 1. Should I declare my Ukrainian income if I do not transfer it to my UK bank account? Does is mean that I am not bringing my money to the UK? 2. If I use my card to pay for goods in the UK (from not UK bank account) Does it mean I am not bringing my money tothe UK? 3. Who determines my domicile status? 4. If there any help-line for Ukrainians about taxation? 5. Do I need to get UTR number if I am here in the UK by the Homes for Ukraine scheme? Thank you! Regards, 

Hi,

1. Any income arising outside the UK, while you are resident or not domiciled in the UK, would only be taxable in the UK, when remitted to the UK, even in a later tax year. For Example, if you are resident / not domiciled in the UK for 2020 to 2021 tax year and you bring into the UK income from 2020 to 2021 in 2022 to 2023 tax year, you would be liable to tax on that income in 2022 to 2023.
    
2. Using your foreign bank card to purachse goods and foods etc, would be considered remitting income to the UK and would be taxable. RDRM35020 provides guidance on monies remitted to the UK in this way.  
   
   RDRM35020 - Remittance Basis: Amounts remitted: Quantification: Conditions A and B - remittances of foreign income or chargeable gains
    
3. You do. You will need to review the guidance at RDR1 and take the tests at RDR3, to make an informed decision.
   
   Residence, domicile and the remittance basis: RDR1
    
4. If you remit any of your foreign income to the UK, no matter how small, you will meet the criteria for Self Assessment. You can register for self assessment at:
   
   Register for Self Assessment 
   
   For more advice you could contact our Self Assessment team on Number: 0300 200 3310, Text Relay: 18001 0300 200 3310, Overseas: +44 161 931 9070.  (Open Monday to Friday 8am to 6pm Closed on weekends and bank holidays).

Thank you.

Does this mean, that 1. as a non domicile Ukrainian living here in the UK under Homes for Ukraine scheme, I do not need to be registered as Self Employed and I will be able to pay taxes even without being registered as self employed? 2. During self assessment, do I have to declare only income I remitted to the UK, example for the last year I earned 10 000 USD, I used my card and spent in the UK 4000 USD, what amount should I show in my Self assessment. Thank you!

Hi,
 

If claiming the remittance basis, you do need to be registetred for self assessment  . Please refer to further guidance at : Paying tax on the remittance basis (Self Assessment helpsheet HS264)  . Thank you.

I am Ukrainian who moved to UK in 2022 (Ukrainian scheme). I want to know wether I can be considered as non dom and what is the procedure to claim this status. My parents had never been living in UK and are not British. I have my house in Ukraine. My questions: 1.Is there any annual fees for being non dom for the first 7 years (remittance basis) if not to bring any money to the Uk. 2. Do I need to pay any tax from my foreign income if I don’t bring this money to the UK 3. Do I need to fill in tax return if I am non dom resident who has foreign income but does not bring any money to UK during the year 4. Shall I apply in advance for non dom status ? How to require this status? 5. Shall I declare all my income , property , bank accounts outside UK if I am UK resident , non dom 6. If I have account abroad with some savings is this savings taxed if non dom. 7. If domicile resident has savings in foreign bank is this money taxed, if yes, what is the tax? Thank you

Hi,
 

HMRC cannot determine that for you. Please refer to guidance at : Tax on foreign income  . This will then answer the subsequent questions  . Thank you.

Hi. Could you please clarify if you need to pay tax on the Ukrainian pension? A pension was issued in Ukraine to a disabled person from childhood, a person has physiological defects from birth, came to the UK via Homes for Ukraine scheme, This money is not spent in the UK. Thank you in advance for your help.

Hi,

If this is a government benefit paid to the individual under the same terms as benefits paid in the UK, it will be treated as such.

If not taxable in UK, then the Ukranian income will not be either. You will need to clarify what is actually received.

Thank you.

If I sell my Ukrainian vehicle in Ukraine and bring money to the UK from this sale. 1. Do I need to make self assessment and declare this sale at the end of the year? 2. It's not taxable right? 3. What kind of documents will you require on this case? Do I need to make an official translation of the sale contract and send it to you?

Hi MichaelKyiv
You would not need to declare this.
Thankyou.

Dear HMRC 1. I am based in the UK (Ukraine Scheme) and work for a Ukrainian employer that has an office in the UK. 2. My Ukrainian employer automatically withheld a Ukrainian personal income tax in full before paying my salary each month as required under Ukrainian tax law. 3. Our UK office also considers me a tax resident in the UK and withheld 100% of the UK tax at an appropriate rate. 4. This is a classic example of double taxation but it looks that both Ukraine and UK failed to agree on any temporary approach convenient for both countries at least during the war. 5. I refer to the clarification/guidance as of 6 Oct 2022 ( https://www.gov.uk/guidance/paying-taxes-in-the-uk-if-you-work-for-an-employer-based-in-ukraine) from you. Unlike with other countries, there are not much details here (https://www.gov.uk/hmrc-internal-manuals/double-taxation-relief/dt19650pp) too. As a matter of Ukrainian law (as I understand) my Ukrainian employer is unable NOT to pay the tax at source in Ukraine, so both guidance may be wrong saying that Ukrainians should write to the Ukrainian tax authorities. 6. When I asked our UK office if I am entitled to pay the difference between the Ukrainian taxed amount and the UK taxable amount, I was told I must pay a full tax in the UK. In fact, as I understand, it is the UK company's obligation, so I am automatically charged 100% of the UK tax and social contributions. 7. Can you please update all of your Ukraine-related guidance and clarify how Ukrainians should pay taxes in the UK given the above and taking into account the UK and Ukraine tax laws including the DTT? 8. In relation to the 2022/23 or 2023/24 tax year, should I/our UK office pay 100% UK tax or the difference between the Ukrainian tax paid and the UK taxable amount? 9. If the response to para 8 above is that the 100% UK tax should be paid by the UK office, please provide guidance how Ukrainians should claim from HMRC for a relief for the Ukrainian tax paid. Thank you

Hi alertik,

You will need to submit a self assessment tax return, to show your foreign Ukraine income and the tax deducted (this needs to be declared in pounds sterling) and the tax deducted on this income in the UK.  
You will need to claim a foreign tax credit relief against the Ukranian tax paid, this will prevent double taxation ocurring.  
You will need to review the double taxation agreement, which can be found at Ukraine: tax treaties.  
You will need to consider your individual circumstances and apply them to article 4 (residence).  
This is the latest guidance on how taxation is applied and will help you determine your residence status for tax purposes.  
If you need further guidance on this, you may need to consider seeking financial advice.

Thank you.

Hi. My mum is under Ukrainian Scheme, she receives Pension Credit in the UK and she receives very low Ukrainian State pension which goes to her Ukrainian bank account. ( she doesn’t have to pay tax on her pension in Ukraine) . What about taxation on it, should she pay any tax here? She showed it when was applying for pension credit in the UK, should she declare it somewhere else too? Thank you.

Good afternoon. Tell me, I’m from Ukraine, I came under the Ukrainian scheme. I have property in Ukraine in the occupied territory. After deoccupation, I want to sell it, tell me, will I have to pay any taxes in the UK (including Northern Ireland)?

Hi Mykola

HMRC cannot cmment on future events as legislation may change.

Thank you