Working remotely in UK

I employed by a Hong Kong Company and work remotely in UK. The HK employer will pay me monthly after deducing my Mandatory Provident Fund contribution (Net pay). For the foreign income filing on my taxable income, should I exclude the part of "Mandatory Provident Fund” contribution? In other words, should I filing my net pay as taxable income? The Mandatory Provident Fund, often abbreviated as MPF, is a compulsory saving scheme (pension fund) for the retirement of residents in Hong Kong. Most employees and their employers are required to contribute monthly to mandatory provident fund schemes provided by approved private organisations, according to their salaries and the period of employment. thanks.

Hi,

The 'total pay' figure entered in your tax return should be the total taxable pay for the year - ie annual net pay after deduction of MPF contributions . Thank you.

Hi, I am a UK resident (with BNO Visa from Aug 2021) and was recently hired as permanent staff by Hong Kong company and working remotely in the UK. I have foreign employment income from that Hong Kong company and paid to my HK bank account. The HK employer would engage me into HK MPF as pension contributions in Hong Kong. I have already registered on behalf of the HK employer for DCNI scheme to pay my NI monthly. Please advise and confirm if: a) The employer is not incorporated and have presence in the UK, so it should not be applicable to uk pension auto-enrolment and as since HK employer has already obliged to pay monthly contributions in Hong Kong MPF under HK MPF ordinance. b) If my foreign monthly income stays in my Hong Kong bank account, and does not remit into the UK, I do not require to pay UK tax. Thanks

Hi Alex.C,

Article 14 of the UK / Hong Kong double taxation agreement, advises that individuals, while residents in the UK, who are employed by a Hong Kong based employer, are taxable on the income in the UK on their foreign employment income.  

There are futher conditions that can result in the income also being taxed in Hong Kong. Please take a look at UK/HONG KONG DOUBLE TAXATION AGREEMENT AND PROTOCOL  

The foreign income should be declared on SA102 and in SA106 pages of a self assessment tax return.  The UK uses the 'arising basis' on world-wide income, by default for taxation.  
Anyone who is resident in the UK, but not domiciled in the UK, can elect to use the remittance basis.  
This means they declare their overseas income, not remitted (brought in) to the UK, so that it is not taxed in the UK.  

Have a look at the guidance on the remittance basis at section 9 of RDR1, as it is not always the best option Residence, domicile and the remittance basis: RDR1

Thank you