Skip to main content

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

Posted Tue, 22 Nov 2022 16:52:22 GMT by Roman I
Dear HMRC, I am writing because I have got into the slightly confusing situation and I want to figure out what will have to do later. I used to be a contractor in one of the British companies. I worked remotely from other country (no British citizenship, never visited the UK until recently). A few months ago the company decided to relocate me and employ. In the early of November I arrived in the UK (as a skilled worker) and now I am an employee in that company. Before relocating I had been working as contractor (Oct 2021 - Oct 2022) and had received monthly payments from the company in US Dollars The events sequence in the chronological order: 1. 31 Oct 2022 - I send a closing invoice for the October (amount is lesser than £2500 and more than £1000) 2. 3 Nov 2022 - I arrive in the UK 3. 8 Nov 2022 - my first day as an employee and I open a bank account in the UK bank 4. 10 Nov 2022 - I receive an email from the payment department which was saying that the closing payment was not successful due the bank issues in my country. It is no longer able to receive USD payments 5 21 Nov 2022 - Me and the company decide to address payment on my UK bank account. I receive the payment and convert USD to GBP right away In this situation I feel that I will have to do a self-assessment, but I am not entirely how exactly this income should be qualified. Also, I do not understand whether I have to register myself as a self-employed. I am not planning to have similar situations and work as a self-employed in future, so probably there is easy way to sort it. Could you advise please what I should do? Thank you in advance.
Posted Thu, 24 Nov 2022 13:51:50 GMT by HMRC Admin 10
You will need to check with your employer to see if they class you as an employee under PAYE or if self employed.
If self employed yes a tax return will be required. You may also want to consider split year treatment.
If you qualify for split year then you only report any foreign income for the UK part of the year :
Residence: The SRT: Split year treatment
If you do not qualify then you will need to report all your foreign income to the UK:
Tax on foreign income
The guidance at RDRM12150 at will help you work out if split year treatment applies. 

Posted Wed, 14 Dec 2022 00:32:36 GMT by Roman I
Thank you for your response. I guess they class me as an employee under PAYE. Which ways do I have in this case? Thank you.
Posted Thu, 15 Dec 2022 17:13:40 GMT by HMRC Admin 10
You will need to review the guidance at RDR1, relating to residence, domicile and remittance at:
Residence, domicile and the remittance basis: RDR1
and take the tests, to determine if split year treatment applies to you.  
If split year treatment does apply, you are not liable to tax on your foreign earnings, however you still need to show it on your tax return.  
You would need to register for self assessment and complete a tax return after 6 April 2023.  
You can regiser at :
Register for Self Assessment
You can also download the main tax return (SA100), Employment (SA102) Self employment (SA103) and residence (SA109) amongst the other supplementary pages if appropriate.  
The official exchange rates can be found at:
Exchange rates from HMRC in CSV and XML format
You can use any of the methods to convert USD to GBP.

You must be signed in to post in this forum.