Split year treatment

Hi, I qualify for split-year treatment and understand that I need to complete the Residence, remittance basis etc (Self Assessment SA109) form. As this form can't be completed online, should I complete my entire self-assessment on paper and send it off together, or is it possible to complete my self-assessment online and then just send off the Residence, remittance basis etc (Self Assessment SA109) part by post? Thanks

Hi,

If you are required to complete a paper tax return form then you must send the SA100 with the SA109 and any other supplementary pages. If you can submit your form online by using 3rd party software then there is no need to send by post. 

Thank you.

Hello, I enter UK on 29 July 2021 and I would like to apply split year treatment. I have read RDRM12030 and some websites, If I think I am eligible to apply split year treatment. May I know how can I apply? Which form do I need to fill in? Can I do it online? Thanks.

Hi,
 

To be considered for Split Year Treatment, you have to (a) register for Self Assessment and (b) complete the Residence pages of your 2022 Self Assessment tax return, which you can complete online.  See link: Register for Self Assessment    .

Thank you.

Hi Admin, The tax year is from 06 Apr 2021 - 05 Apr 2022. I first entered to UK on 7 June 2021 and stay for more than 183 days here in the UK and so I become a UK tax resident. From 07 June 2021 until 05 Apr, 2022, I worked as self employed /sole trader at my home in UK to offer consultancy services for a Hong Kong company to get HK dollars as my income earnings. I have TWO questions: (1) The income earnings from 06 Apr to 06 June, 2021 (I am still in HK and earning income from employment), do I need to declare this period's earnings under Spilt Year Treatment? If yes, where I can find to delcare this period's earnings? (2) From 07 June 2021 to 05 Apr 2022 , I need to declare the earnings as self employed, but if I did not remit these earnings to the UK in the tax year, can I apply for Remittance Basis so that this part of earnings will not be taxable? Thank you.

Hi,

Under the circumstances you have outlined you would not have to declare the income your earned in Hong Kong before you arrived in the UK on 7 June 2021.

If you wish to claim the remittance basis, please complete as appropriate a 2022 Self Assessment tax return. Full details of how to do so are provided in the HS264 helpsheet.                      

Remittance basis 2021 (HS264) 

Thank you.                     

Hi, If I claim for Remittance basis, I know I have to fill out SA109 form, however, do you mean that I need to first fill out a self assessment tax return (SA100) online , in addition to SA109 in paper form ? I searched on the web that SA109 is only in paper form , I can’t fill out online , am I right?

Hi, my situation is a bit different from those above: I am going to definitely move abroad from 15 August 2022 and I qualified as UK tax resident during this tax year, so I would qualify for split year tax treatment for the tax year 2022/23. During the UK part of the tax year all of my income will be UK-based and as it will be employed income, the tax declaration will be done by my employer on my behalf. Based on the above, do I need to declare any change of circumstances to qualify for the split-year tax treatment or will this work automatically?

Hi YY@2022
You should be completing these together but the SA109 is not available online unless you purchase third party software.
You can either do all on paper or if you prefer online, details of software suppliers can be found here:
Self Assessment commercial software suppliers
Thankyou.
Regards.

Hi Giovanni
If you are leaving the UK then you would complete the form P85 to allow us to apply split year and update your records.
Get your Income Tax right if you're leaving the UK
Thankyou.
Regards.

Hi, About split year treatment, I saw other posts on this forum saying that if you meet the criteria for split year treatment, then you do not need to include the part of overseas earnings in the tax year before entering the UK, is that right? For example, from 04 April 2021 to 06 June 2021, I was in the USA and earned USD 5000, then from 07 Jul 2022, I started living in the UK and started my own business here and got GBP 18,000 turnover until the end of this tax year. So I need to fill in the page SA 109 to apply for Split Year Treatment (as I know I meet the criteria), so I just report the income of GBP 18,000 under the self-employed page, so for USD 5,000 earning aboard, do I need to report to "foreign income" page? So first we need to put a"X" on box 3 on the SA109 page to claim for Split year treatment so that HMRC will know that I am having TWO parts of income earnings split up into TWO parts in the Tax Year, am I right? Then, HMRC will base on the information on box no. 3 to 14 on the SA109 to differentiate which parts of earnings are overseas' part, and which are from UK part, and finally those earning from UK part will be outlined for tax calculation, is that right? So, to sum up, even we claim for Split Year treatment, we still need to report ANY income earnings throughout the Tax Year, no matter it's from UK, or overseas. Please correct me if anything wrong. Thanks.

Hi TT JB
Yes this is correct.
You only report foreign income if you do not claim or qualify for split year.
If you do, then you can elect for this on the SA109 form and then not record the income received in the overseas part of the year.
The income for the UK part of the year will be entered as self employment income.
Guidance on the completion of the SA109 can be found here:
Residence, remittance basis etc (Self Assessment SA109)
Thankyou.
Regards.

Hi, I would like to consult which form and how much that I need to fill in the form. Below is my conditions detail between 1Aug2021-6Apr2022: Landed in UK 1Aug2021, UK is only home NO any income, unemployed in UK interest GBP 500 Foreign Dividend GBP 3000 (after tax), GBP 3400 (before tax) Foreign capital gain GBP 12000 ==> Total income GBP 15500 Q1) Am I needed to pay tax if my total income is less than total income+interest+dividend allowance of GBP 16570? Allowance: Individual allowance GBP 12570 Interest allowance GBP 2000 Dividend allowance GBP 2000 Capital gain is less than GBP 12300 ==> Total allowance 16570 Q2) If Q1 is correct, I do not need to pay tax. Do I need to fill in SA100? and consult detail as below: For SA100 form, page TR2, Do I need to put “Yes” on 2) self-employment, 5) Foreign, 7) Capital Gain tax summary? For SA100 form, page TR3, Do I need to fill in the 3) untaxed foreign interest GBP 500 6)Foreign Dividend GBP 3000 (after tax), 7) tax taken off foreign dividends GBP 400? Q3) Capital gain is less than GBP 12300, do I need to fill in SA108? Q4) For SA109, put a"X" on box 3, as I migrated to UK 1Aug2021. I can apply the Split-year treatment.

Hi May Man,

You need to register for self assessment and complete - SA100 ,  SA106 , SA108 and SA109. 
You will show all the foreign  income in the SA106 not at TR3.
You will only answer yes to self employment if you are in fact self employed and if so you will need to complete the SA103 in addition to the other pages referred to.
Any tax liability will depend on the figures you declare on the return.

Thank you.

Thanks Admin confirming the types of forms that I need to fill in. Based on my understanding, My total income is GBP 15500, while the total allowance is GBP16570, so I need to report the income detail but I do not need to pay any tax. Am I correct ? Thanks My detail below: Landed in UK 1Aug2021, UK is only home NO any income, unemployed in UK interest GBP 500 Foreign Dividend GBP 3000 (after tax), GBP 3400 (before tax) Foreign capital gain GBP 12000 ==> Total income GBP 15500 Q1) Am I needed to pay tax if my total income is less than total income+interest+dividend allowance of GBP 16570? Allowance: Individual allowance GBP 12570 Interest allowance GBP 2000 Dividend allowance GBP 2000 Capital gain is less than GBP 12300 ==> Total allowance 16570

Hi, I arrived in the UK in July 2021 and have became a UK resident since then. I am sure that I fulfil the conditions of case 4 of split year treatment. I have 2 questions: 1. Before arriving in the UK, I had income from my home country. Am I correct that I do not need to report it to HMRC? 2. After arriving in the UK, I still have savings in the bank account of my home country and the interests that I received was less than £50 from the day I arrived in the UK to the end of the financial year. The savings there will not be remitted to the UK. In this case, do I need to file a self-assessment? Thanks in advance!

Hello HMRC, I will be moving from the UK to Italy - I am an EU citizen with UK Settled Status - in October 2022, I have been in the UK for over 6 years, always been employed full time and qualify as a UK Tax resident during this tax year. In October I will resign from my job in the UK, where I pay my taxes etc via PAYE, officially move to Italy and start a new contract there, with no time off in between. In the UK Tax year of 2023/2024 I will no longer be a UK resident. Based on the RDRM12000 manual I should qualify for Case 1 of the Split Year Treatment and based on your reply to Giovanni above I understand that completing the P85 should be sufficient to do so. My questions are: 1. Am I correct in understanding that the P85 suffices to apply for the Split Year Treatment and I do not need to submit a Self Assessment? 2. During the second part of the Split Tax Year, where I will be in Italy working for an Italian employer, will I be due any UK income tax? For example if the amount of income tax I would pay in Italy would be lower than it would have been in the UK? 3. Any over- or underpayment of Income tax for the (split) tax year 2022/2023, will that be calculated as normal? (relating to your answer provided to Keikoo above; if my annual income was £50k, but my effective income in the UK part of the Split tax year is only £25k, would my tax band be adjusted down retrospectively and would I therefore be due a tax refund?) Thank you very much in advance for your help!

Hi May Man,

Yes, you are correct.

Thank you.

Hi
 

YM,   You do not need to report the income prior to arriving in the UK. You do need to report the foreign income and a tax return is required see link: Tax on foreign income    . Thank you.

Hi
 

lon.deg,

 

You will need to make sure that you do not need to complete a tax return for another reason. If you dont, the P85 will suffice and you will only declare income in the UK until the period you leave, Income you receive after that will not be taken into account and will not be taxed in the UK. Your income tax band will not be adjusted retrospectively and you will receive the annual rates of allowances/tax bands. Thank you.