First Self Assessment - Other Income from Freelance Job

Hi, I'm working full-time employee in the UK since April 23, and started a consultancy project with the World Bank in July 23. My contract with the World Bank is short-term consultancy 150 days annually. The World Bank team informed me that I'm exempted from paying income tax on this earning because I'm not a British citizen and that I need only to pay national insurance. the income tax and national insurance are deducted automatically each month from my full-time job, but I would like to check if I need to pay anything for my freelance job with the World Bank. If yes, what should I do, I haven't submitted or registered for self assessment yet. Thanks

Hi,

Your freelance job is self employment and as such, requires the completion of a Self Assessment tax return.  

As you are resident in the UK, you are taxable on the profits from your freelance work in the UK, and also need to pay National Insurance. You will need to register as self employed for Self Assessment below so that class 2 and class 4 National Insurance can be calculated on your net profits.

Set up as self-employed (a 'sole trader'): step by step

Thank you.

Hi, Thanks for your reply, I wanted also to add that I'm getting a net salary excluding taxes, and the taxes are paid by my employer in the US. It's mentioned in my contract that the consultancy fees is net and I should pay only the national insurance which is included in the fees, Can I request taxes exemption based on that and pay NI only? Thanks

In addition, it is a foreign income.

Hi
Please have a look at the guidance atINTM860750 - , which covers the  world bank.  You are resident in the UK, so taxable in the UK and not the USA.

Hi, Thanks for your reply. But what about the part mentioned about exemption of non citizen in INTM860750 (while requiring them to exempt from tax the salaries of those who are citizens of other countries)? Thanks, Nourhan

Hi Nourhan Abdellatif,
INTM860750, advises that British citizens employed by the world bank (and certain other organisations) are not entitled to exemption from UK tax on their emoluments.
If you are not a UK citizen, but resident in the UK, then provided your country of nationality is a member states of those organisations, they are allowed to tax the salaries of employees who are their own citizens, (while requiring them to exempt from tax the salaries of those who are citizens of other countries).
Thank you. 

Hi @HMRCAdmin25. Could you clarify that final sentence. I am an Australian citizen who is a permanent resident in the UK and a freelance consultant. I interpret the final section to mean that UK is required to exempt citizens of other countries (including Australia) from being taxed on income from the world bank. Does this mean i would not need to declare the income or should i declare it with the understanding that according to INTM860750 i am not liable for tax on that? Thanks

Hi JasonSali,
International organisations normally distinguish between those they consider to be `officials' (see INTM860630) and `consultants' (generally designated by the organisations as `experts on mission') who are considered to have the status of independent contractors. The customer has advised they are a freelance contractor rather than an employee. INTM860750 refers specifically to employees. Claims to exemption from individuals regarded by the organisation as `consultants' or `experts on mission' should be resisted and their fees taxed in the normal way. See
INTM860760 - INTM860760 - Employees of International Organisations: Experts/consultants.  We cannot give any rulings/opinions in relation to international employments on a general forum, there is a specialist business area (the email is in the manual reference I have supplied).  You should supply full facts in writing for further advice.
Thank you.