Skip to main content

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

Posted Sun, 19 Jun 2022 19:33:28 GMT by HS Ojisan
Hello, I'm trying to fill in the online Self Assessment form regarding my additional income from the USA. I'm a full-time academic working for a UK university and I was awarded an academic fellowship in the USA last year, with a stipend payment of about £10k. The payment is designated neither a salary nor service fee as its purpose is to pay for my living costs while doing the fellowship in the USA. Due to the pandemic, I ended up doing the fellowship online and the US institution paid the stipend directly to my UK bank account - in four instalments - without deducting tax at source (normally, the appropriate US tax amount is deducted from stipend payments but not in my case). I received the stipend while receiving salary from my employer in the UK. The fellowship period was four months. I assume I need to declare this foreign income. As my stipend does not seem to fit to any of the foreign income categories, I've decided to declare it as 'other UK income' - after all, I received the stipend in my UK bank account in GBP. I'd be grateful if anyone could answer the following: 1. Am I right in thinking that I need to declare the stipend as my extra UK income - i.e. no tax exemption for academic fellowship stipends? 2. Is my decision to use the 'other UK income' category the right one? 3. If I'm to use the 'other UK income' category, what sort of business expenses can I include? The form says that I'm not allowed to include capital items such as computers. I thought we were allowed to include computers in business expenses. Does a different rule apply to expenses for 'other UK income'? Thank you.
Posted Tue, 21 Jun 2022 12:56:53 GMT by HMRC Admin 10
The income should be shown on the foreign income secion at - Dividends and all other income received 
by a person abroad.
You may need to fill in boxes 10 to 13.
For expenses, please refer to:
Claim capital allowances
Posted Sat, 25 Jun 2022 16:57:22 GMT by HS Ojisan
I'm afraid your answer doesn't really make sense. As I stated, I am referring to the online Self Assessment form and it does not have box numbers, hence no boxes 10-13. I don't see any section called ''Dividends and all other income received by a person abroad'. When I check the box 'Any other overseas income and gains' on page 2 of the Foreign income details section, the only options I have are: 'Gains on disposals of holdings in offshore funds', 'If you've received a benefit from a person abroad', 'Gains on foreign life insurance policies' or 'omitted income' - neither of them seem to apply to the income type I'm trying to declare. I'd be grateful for your further help.
Posted Tue, 28 Jun 2022 10:20:17 GMT by HMRC Admin 19

You will need to tailor your return to include foreign income. Once you have selected his, other boxes will then appear for you to select the option to declare the type of income you receive.

Thank you.
Posted Sat, 02 Jul 2022 20:42:31 GMT by HS Ojisan
Hello, I've managed to enter my foreign income now. However, I don't see any section for claiming expenses. My foreign income was a fellowship stipend and I've spent most of the money to pay for the expenses related to the fellowship research. Thank you.
Posted Tue, 05 Jul 2022 08:21:02 GMT by HMRC Admin 17

I would suggest you enter the net amount in the Foreign section, and itemise the expenses you have claimed in the
'Any Other Information' box in the main section of the return.

Thank you.

You must be signed in to post in this forum.