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Posted Sat, 16 Dec 2023 03:22:36 GMT by ivc-mtr mtr
Hi there, Hope you are well. I would like to ask a question regarding the foreign incomes in self assessment. I arrived in 4May 2022 and my previous employment in Hongkong was terminated on 31May2022. By the time I was terminated, I have received a total amount which included payments for my salary, pro-rata year end bonus and unused holidays from 1Jan to 31May. Also, as I have service in my company for over 15 years, I have got a Servance payment according to Hongkong Labour Law for my last 15 years service in that company. My first question when I declare the foreign incomes in self assessment, would it be counted from the day of my entry to the UK which means from 4May? If yes, would it apply to the above payments mentioned ? (i.e. Salary , year-end bonus and unused annual leave?). Please kindly clarify if not. My second question regarding the Servance payment I have received which is a long service compensation one month per year for the previous 15 years working in the company. Do I need to declare it as foreign incomes? If yes,do I need to declare the whole amount 15 months or partial since I am tax resident? If not, can I get any exemption? In Hongkong, the labour law states Servance payment above HKD15000 per month is taxable. It means HKD15000x15yrs will not need to be declared in Tax assessment. I would like to thank you for your patience in reading my questions and appreiated for your help in answering them. Many thanks.
Posted Wed, 20 Dec 2023 15:37:37 GMT by HMRC Admin 5
Hi

Under the terms of the double taxation treaty with Hong Kong, payment for employment carried out in Hong Kong is ony taxable there.
You therefore do not need to declare that income in the UK.

Thank you
Posted Thu, 21 Dec 2023 09:52:47 GMT by ivc-mtr mtr
Hi, Thank you for your reply. Would just like to clarify that do I need to declare the part of income from 4May2022 to 31May2022 since I have lived in the UK ? Thanks again for your help.
Posted Tue, 02 Jan 2024 12:09:51 GMT by HMRC Admin 21
Hi ivc-mtr mtr
Oly the salary income from Hong Komg for that period doesn't need to be declared.
Thank you.

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