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Posted Sun, 10 Dec 2023 18:47:20 GMT by
Hello, How is UK income treated for non-dom taxpayer who'd like to choose and file under the Remittance Based option? Just as an example to understand better: Assume the person transfers 50,000 GBP to their account in the UK from abroad, and on top of that finds employment in the UK for a gross salary of 40,000 GBP and has a side-hustle that makes them 15,000 GBP in that given year. Are foreign and domestic income taxed separately or does the person pay the tax as if all 105,000 GBP were transferred from abroad without any personal tax allowance? Thank you
Posted Fri, 15 Dec 2023 12:47:51 GMT by HMRC Admin 25
Hi eko,
Both foreign and domestic income is added together and the overall liability calculated.
Anyone who is resident in the UK and is not domiciled in the UK, can choose to claim the remittance basis of taxation.
In doing so, you lose your personal alloances / annual exempt allowance for capital gains and if you have been resident in the UK for a certain length of time, will also incurr the remittance basis charges.
Please have a look at sectin 9 of RDR1:
Residence, domicile and the remittance basis: RDR1
which may help you decide if it is beneficial to you.
Thank you. 
Posted Mon, 18 Dec 2023 17:05:50 GMT by
Hi, Could you please confirm my understanding with an example? A Remittance Basis User (RBU) is an employee in the UK and would be paid by their employer after National Insurance (NI) and Income Tax (IT) are deducted. Let's say an RBU earns a gross salary of £28,000 per year. Typically, taxable income would be £15,430, meaning approximately £3,086 IT. Considering NI costs, the RBU would take approximately £23,060 home net. Does the RBU need to pay additional tax (20, 40, or 45% depending on the current band) on: - £23,060 - The "untaxed" (due to personal allowance no longer being applicable) amount of £12,570 - The entire £28,000 Please let me know if my understanding is correct. Does the self-assessment system work out on those kind of details automatically after receiving remitted from abroad amount plus UK employment income details from PAYE and the user?

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