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Posted Mon, 30 Jan 2023 14:35:41 GMT by Anna Gribbon
Between April 2020 and the end of April 2021, I worked as an independent contractor for a foreign company based in Singapore. I was working from home in the UK and I am a UK citizen and resident. I was paid monthly into an account with a third party company (Payoneer) in USD, which I would then withdraw from payoneer into my UK bank account in GBP. As far as I can understand, this means that I have to fill in the income from my payslips into the foreign income area of the self-assessment. However, I'm struggling to understand which of the types of income or gains I should be declaring this kind of income under. I wasn't sure if it should be "All other income received by a person abroad and any remitted 'ring fenced' foreign income" since this implies to me that a person is being paid abroad whereas I, the independent contractor, was based in the UK. But maybe the third party company, Payoneer, counts as a "person abroad"? I haven't paid foreign tax on the income, as far as I can tell, so I don't think I fit within "Employment, self-employment and other income which you paid foreign tax on". I'm unsure if I should be selecting "Any other overseas income and gains" or one of the other categories. Would anyone be able to advise me on this?
Posted Thu, 02 Feb 2023 10:40:10 GMT by HMRC Admin 25
Hi Anna Gribbon,

In the online tax return, you would select the foreign income option and select 'No' to foreign tax credit relief on capital gains.

 If you receive any warning messages, check the boxes and if all is ok, click on save and continue.  

In section 4 'fill in your return', tick the box for "Employment, self-employment and other income which you paid foreign tax on".

 Fill out the relevant boxes and click on add and save and continue when done.
As you are self employed, you also need to show this income by completing the self employment section, otherwise the foreign income is not included in the calculation.

Thank you. 

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