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Posted Tue, 03 Jan 2023 12:37:44 GMT by Jessica
I currently work for a UK university full time and pay tax by PAYE. I am UK resident. From time to time I review research grants for European agencies and get paid in Euros. It is stipulated by these agencies that doing so does not make me an employee, so presumably I am doing it by self employment. Do I need to declare this income via self assessment and should I do so as "foreign income" or something else?
Posted Mon, 09 Jan 2023 11:48:03 GMT by HMRC Admin 19
Hi,

This is foreign income and meets the criteria for completing a Self Assessment tax return. You can register for a tax return here:

Register for Self Assessment

You would need to convert from euros to sterling, using the official exhange rates, which can be found here:

Exchange rates from HMRC in CSV and XML format

You would complete the self employment supplementary page SA103 and if you paid foreign tax, you would also complete the section 'Foreign tax paid on employment, self-employment and other income' on the foreign supplementary page SA106, as well as claim Foreign Tax Credit Relief. 

Thank you.
 
Posted Sun, 17 Sep 2023 08:55:44 GMT by
Hi, I also work for a UK university full time and pay tax by PAYE and I am UK resident. Sometimes I assist companies outside UK by providing advice , for which I receive a consultancy fee. These, I invoice in pounds and I receive the money in pounds. Is this foreign income?
Posted Wed, 27 Sep 2023 09:22:02 GMT by HMRC Admin 19
Hi,

No, you would class this as self employment income.

Thank you.
Posted Sat, 11 Nov 2023 13:23:59 GMT by
I am a UK resident. I receive consulting income paid in GBP paid from businesses overseas. Is this foreign income? Thank you.
Posted Wed, 15 Nov 2023 10:39:03 GMT by HMRC Admin 19
Hi,

Yes, it is generated overseas, so is foreign income.  

As you are self employed, you should declare the consulting income as part of your turnover on SA103 and if overseas tax was deducted, you should also declare on SA106, to claim a tax credit.  

In the online return, you would select yes to self employment and if necessary, yes to foriegn income.

Thank you.
Posted Fri, 24 Nov 2023 02:58:07 GMT by
Hi, Does a non-domiciled UK resident (1) receiving a consultancy fee from an overseas company not connected to the UK whatsoever and (2) doing their work only and wholly while overseas (for a week or so) need to declare the fee they so received as a foreign income? If yes, what form(s) to complete? If SA 103 Self Employment and SA106 Foreign, which particular sections of these forms as having reviewed these forms, most sections seem unrelated? Thank you.
Posted Mon, 27 Nov 2023 15:02:07 GMT by HMRC Admin 18
Hi.

This depends on whether you are claiming the remittance basis or not, See link below: 

Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thanj you.
Posted Tue, 28 Nov 2023 07:19:48 GMT by
Thanks for your reply. Yes, this non-dom UK resident is claiming the remittance basis. I have read the info your link leads to. It doesn't seem clear to me whether a non-domiciled UK resident claiming the remittance basis and receiving a consultancy fee from an overseas company not connected to the UK whatsoever and doing their work only and wholly while overseas need to declare the fee they so received as a foreign income? If yes, what form(s) to complete? If SA 103 Self Employment and SA106 Foreign, which particular sections of these forms as having reviewed these forms, most if not all sections seem unrelated to consultancy fee received from a overseas company? Your specific advice would be appreciated. Thank you.
Posted Thu, 30 Nov 2023 13:49:04 GMT by HMRC Admin 32
Hi,

As a non domiciled resident of the UK, you are taxed by default using the 'arising basis' on your world-wide income, even if you do not bring it to the UK (remit). This means that you would declare your overseas consultancy fees under self employment (SA103) and if your paid foreign tax, you would also declare on SA106 and claim a foreign tax credit.  
As a non domiciled resident of the UK, you also have the option to use the remittance basis. If you choose to use the remittance basis, then you can declare the overseas income and capital gains that you did not remit to the UK, so that you do not pay tax on it in the tax year that it arises. You would, however, pay tax on it in a later tax year, if you bring it to the UK in that later tax year.  

Have a look at the guidance on remittance basis at the link below, as you will need to decide if the remittance basis is right for you.

Residence, domicile and the remittance basis: RDR1

To claim the remittance basis, you will need to complete SA109 as part of your tax return.

Thank you.
Posted Sun, 24 Dec 2023 21:09:46 GMT by Ruddink
I am self employed and worked as a contractor whilst living overseas for 2 months. I did not pay tax on my remuneration which was in Euros. Do I file this income under " Any other overseas income and gains" in the Foreign income details (Page 2 of 2) section? The option "Employment, self-employment and other income which you paid foreign tax on" Does not work as I have not paid foreign tax
Posted Mon, 08 Jan 2024 11:10:13 GMT by HMRC Admin 5
Hi Ruddink

You should declare this in the self employment section of the tax return, so that it can be included in the tax calculation.  You only need to include this income on the foreign section, if foreign tax was deducted.

Thank you
Posted Tue, 09 Jan 2024 11:53:39 GMT by
Hello, I'm a freelancer living in the UK. The only income I receive, is from a German client. I'm currently filling out my first tax return in Self Assessment and got stuck at the details about foreign income, because I can't figure out which type of income my income is. Which box do I click? I don't have to pay tax in Germany, only in UK, so I don't have any income that got taxed overseas. Thank you!
Posted Mon, 15 Jan 2024 16:50:00 GMT by HMRC Admin 19
Hi,

You will declare this as UK self employment and ensure the income is converted to sterling.

Thank you.
Posted Mon, 29 Jan 2024 01:42:26 GMT by
1)Is GBP income equailvant always based on exchange rate at the time EUR consultancy fee received? 2)Both average rate or monthly rate are acceptable , as long as consistent across the year? Thanks in adance
Posted Wed, 31 Jan 2024 14:39:10 GMT by HMRC Admin 2
Hi,

You can use any of the rates on GOV.UK.

HMRC currency exchange monthly rates

Thank you.
Posted Fri, 10 May 2024 17:39:34 GMT by maych
Hi HMRC, I am a non domiciled UK resident. I am self employed and provide consultancy services to a company in HK. The work was all done in the UK and the monies banked into my bank account in HK. I do not intend to remit the money to the UK. Can you please advise as the self employment work was done wholly in the UK - Am I eligible to claim remittance basis or do i have to pay tax in the UK? I checked the HK UK DTA but it only mention income from employment and not self employment. Thank you
Posted Wed, 15 May 2024 15:00:27 GMT by HMRC Admin 19
Hi,

Your self employment work would qualify for the remittance basis. If you claim the remittance basis, then you are declaring all of your UK income and any foreign income brought into the UK, remitted. If you bring the money into the UK in a future tax year, it will be taxable in that future tax year. For more information on the remittance basis, please have a look at section 9 of RDR1 here:

Residence, domicile and the remittance basis: RDR1 

Changes to the remittance basis come into effect from 6 April 2025.

Thank you.
 

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