Gross income and pension

I have foreign employment income from a Hong Kong company and paid to my HK bank account. How should I input the gross income in SA102? In the case my annual salary before local tax is 40k, my employer took away the mandatory pension automatically every month, total amount 2k for the year. Should I input the gross income as 40k? or 38k? Thank you.

Hi,

If you are resident in the UK, but not domiciled, and you do not bring this income into the UK, then it is not taxable in the UK and you do not include it on a Self Assessment return.  

If at some point in time, you bring it in to the UK, you will need to declare it on your Self Assessment return in the year you bring it to the UK. You can claim for tax relief on foreign tax paid on this income. You can see the guidance on residence, domicile and remittance to see how this affects you here:

Residence, domicile and the remittance basis: RDR1

If you are declaring this income on your tax return, you would use the figure after pension deduction, so that you can recieve tax relief on your pension payments. The maximum relief for pension payments is £40000 and this figure could reduce, depending on your total income.

Thank you.
 

Hi, I work in the UK remotely for the HK-based employer, so I am going to declare this income. The pension is mandatory by HK law and the fund is not managed by any firm under QOPS list. Can I still use the figure after pension deduction as gross income? If yes, do I need to make any claim in the self-assessment form? Thank you.

Hi,
 

You can get double taxation relief on contributions to an overseas pension scheme if: you were paying into the scheme before you moved to the UK and you were receiving tax relief on those contributions contributions to the scheme are covered by a double taxation agreement  . You need to check the UK’s tax treaty with the country where your pension is based to see what relief you can get under the double taxation agreement. See links: Tax treaties  .  Further guidance can be found at : Claiming tax relief on your contributions to overseas pension schemes   . Thank you.