Skip to main content

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

Posted Sat, 18 Mar 2023 13:21:44 GMT by Tim Page
I host a guest as part of the Homes for Ukraine scheme. I have noticed a lot of chatter recently on hosting Facebook forums saying the guests believe they should be taxed at 18% in Ukraine on everything they earn in the UK (there is no tax free allowance) and then taxed at 20% when earning over the UK personal allowance of £12570. However, my reading of the situation is that the 18% Ukraine tax only applies for the first 182 days of being in the UK and then they can elect to be UK taxed and use the UK £12570 personal allowance. My guest does not work remotely for a Ukraine employer and has only had a UK based job since arriving here. What is the correct taxation for my guest ?
Posted Thu, 23 Mar 2023 13:45:58 GMT by HMRC Admin 25
Hi Tim Page,

This is a complex question and not straight forward to answer.

 Any non UK income arising while not resident in the UK for a full tax year, is not taxable in the UK.  

If you are considered resident for a full tax year, then you can review the guidance on split year treatment, to determine if it can be applied.  

In addition, you are taxable on the arising basis on your worldwide income, unless you claim the remittance basis.  

The guidance for residence, domicile and remittance would need to be considered and the tests undertaken to determine your residence sand domicile status.

Guidance note for residence, domicile and the remittance basis: RDR1
There is a double taxation agreement between the UK and Ukraine.

Any income arising from a UK employer, while the individual is resident in the UK, is taxable in the UK.  Article 22 covers the elimination of double taxation, so that if the income is taxable in the UK, a credit for that tax can be claimed in Ukraine and vice versa.


Paying tax: Homes for Ukraine

Thank you. 

You must be signed in to post in this forum.