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Posted Wed, 20 Mar 2024 18:23:56 GMT by lamlam12
Hi HMRC Admin, I am moving from Hong Kong to UK and will have 2 sources of income, 1st from a uk company as a empolyer, 2nd is from my Hong Kong business. 1st income : As I will be employ by a UK company and pay tax via PAYE 2nd income: I have a sole proprietorship business running in Hong Kong, address registered in Hong Kong, and will continue running even I move to the UK, the company is providing consultant service to my client in Hong Kong & China, I will be providing the service remotely from the places I am at, so will be UK once I moved. May I know for this income does it count as FOREIGN INCOME ? or SELF EMPOLY ? If so which tax form is the right one I should fill in for the 2nd source of income? *Business annual turnover HKD280,000 (~GBP28,000) , profit depends on expenses and business cost, profit from last year HKD 30,000 ( GBP 3000) , if i keep the profit in my Hong Kong business bank account, which Tax should I be paying & declare as? Or if I want to move the profit to my UK Bank account, which tax am I be paying and declare as? * If this is count as SELF EMPLOY, do I need to register anything as a sole trader in the UK via HMRC? * As there's profit tax 16.5% in Hong Kong I will be paying for my HK business's profit, do I get the tax credit deduct from the Tax I will be paying in the UK? Thanks so much.
Posted Mon, 25 Mar 2024 15:43:39 GMT by HMRC Admin 5
Hi

As tax will be deducted in Hong Kong, the income will be declared under both self employment and foreign income in order for you to claim foreign tax credit relief.
If you are claiming the remittance basis, you only report the foreign income if you remit any to the UK. Please see - Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you

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