Income from oversea (Hong Kong)

I am a uk tax resident starting from May 2022 (date of arrival to UK). After I arrived the UK, the employer continued to paid as salaries for my accumulated annual holiday until 6 Nov 2022. Before I arrived the UK, I have proceeded tax clearance in Hong Kong and settled. (Included all my countable salaries/incomes from May 2022 to Nov 2022 in taxable year 2022/2023.) As there is a double treaty agreement between the UK and Hong Kong, is that mean I would not require to report this oversea incomes in the tax return?

Hi,

As the income relates to work carried out in Hong Kong, you do not declare it here under the terms of the double taxation treaty.

Thank you.

Refer to the reply “you do not declare it here under the terms of the double taxation treaty.” 1. Is that mean I would not require to report it as an foreign / oversea incomes in the tax return? 2. Is there any penalty if I fill the tax return incorrectly by misunderstanding? Moreover, I have not apply split year treatment when fill the form SA1, can I still apply the treatment thru’ fill the form SA109?

Hi LK KONG

You do not declare this income in the foreign secttion or the employment section of a self assessment tax return, as it is not taxable in the UK.  
In the interests of full disclosure, you can, if you want, mention the non taxable income in the freehand notes box on page TR7 box 17.  
There is no penalty where you have completed the tax return incorrectly, in error.  You may end up paying to much tax or incurring penalties and interest.  
Deliberately entering incorrect figures or omitting them can have serious consequences.

Thank you

Hello, hope you are well. I moved in the UK in June2023. I was a direct employee of and got paid by my Hong Kong employer until 31July 2023. Since then, my employment contract was ended and my Hong Kong employer changed my employment type from a direct employee to a consultancy contract which I acted as an individual consultant and continuously provide service to my Hong Kong employer under a consultancy contract (I was paid regularly) until 31July2024. I have several questions as below, appreciate for your advice: 1. Did I need to pay tax for the tax year of 23/24? 2. For 24/25 tax year, do I need to do the Self Assessment? 3. If so, since I am a combination of self employed and employed from 6Apr2023 to 5Apr2024, which option should I select while registering for the Self Assessment (i.e. You are a self-employed; You are a partner in a business partnership; or For another reason)? Thank you very much for your advice.

Hi,
You first need to consider the UK tax residency rules.
RDR3 Statutory Residence Test
As you were resident in the UK for more that 183 in the 23/24 tax year, you are tax resident for the whole tax year. As you are tax resident for the whole tax year, you need to consult the guidance on split year treatment.
You will need to consider article 14 of the UK/HK tax treaty, as it refers to employment income. You became self employed when you moved to a consultancy contract and this is covered by article 20 (other income).  
As self employed and in receipt of foreign self employment income, you are required to complete a Self Assessment Tax Return.
Thank you.