Declaring Italian income to HMRC?

I live in the UK permanently (settled status) and I have done so for a few years, however I own a property in Italy + I did some work as an employee in Italy (earned about £1k pm for a few months). I have done the Italian equivalent of a self assessment in Italy and have paid tax on both income and property. In the UK, I am an employee, and I don’t own any property etc so I don’t do a self-assessment… But do I need to declare the Italian property and income to HMRC? It had never occurred to me to do so, as I have paid tax regularly in Italy for these, and obviously I also pay tax in the UK on any employment. I’m freaking out a little about this, as I have owned the Italian property for a few years now and I think the Italian job was at least 1 year ago? Help please, thanks

Hi,

Italy has the first option of taxing Italian property income, but the UK also has the right to tax your worldwide income, so it should be declared on a tax return.

As you are in receipt of foreign employment income and foreign property income, you will need to register for Self Assessment and declare the income in a tax return. If you were in Italy at the time you were employed, the employment income is taxable there. If you were in the UK working remotely, then the income is taxable in the UK and not Italy. For the latter, you will need to request a certificate of residence in relation to the employment income.  

How to apply for a certificate of residence to claim tax relief abroad

You should claim a refund of any tax paid in Italy on the employment income, as it is not taxable there.  

The overseas property income and employment income should both be declared in the tax return. You can claim a foreign tax credit to avoid double taxation.

Thank you.