Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 16 Aug 2022 12:41:07 GMT by Karolinaa

I asked about business income form abroad in forum Self Assesment. The asnwer was that I shoul declare income from overseas in the Self Employment pages (SA103) of your tax return an I can claim Foreign Tax Credit relief on any overseas tax deducted in the 'Foreign tax paid on employment, self-employment and other income' section of the foreign pages (SA106).

In that case should NICs be charged on all abroad income? Contributions from abroad income have been already paid abroad so I want to be sure. I was referred to this forum. For example: UK resident Employment (SA102) in LTD Company - Income =2000 GBP Self Employment (SA103) - business income from abroad - Income=28476 GBP Foreign Tax paid: Self-employed income (SA106) - Foreign tax paid=4240 GBP Income Tax, Class 2 and Class 4 National Insurance contributions due = 1866 GBP Are this calculations correct? Shoul I pay Income Tax and NICs?
Posted Wed, 17 Aug 2022 13:16:04 GMT by HMRC Admin 19

You will be liable to class 4 National Insurance on the self employed profits and this may be reduced if you have already paid Class1 National Insurance under PAYE.

Class 2 National Insurance will be based on the period you are self employed in the tax year.

The total income is liable to tax for amounts above your personal allowances. This is then reduced by any foreign tax credit relief claimed

Thank you.
Posted Thu, 18 Aug 2022 07:00:17 GMT by Karolinaa
Hi, thank you for your response, I have more two questions: 1. Are Class 2 and Class 4 National Insurance contributions are calculated in the same way for British Self Employed and for Self Employed operated by the taxpayer abroad? 2. Are the contributions I paid abroad (in Poland) reduce the contibutions paid in the UK? Looking forward for your response
Posted Fri, 19 Aug 2022 14:26:02 GMT by HMRC Admin 2

Contributions paid in another country would not count towards UK contributions.

Thank you.

You must be signed in to post in this forum.