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Posted Fri, 28 Oct 2022 00:52:39 GMT by cgvfx
Hello, in my 2020/2021 tax year I did mostly self-employment work. 2021/2022 most of my income was PAYE, except for some freelance remote work I did for a German company. I was paid in euros. It was approximately £4000 converted. 1) Do I define this as foreign income or self-employment? 2) Is the converted amount based on what it was in April 2021 or now? 3) I made a payment on account of £500 on January 2022, and £500 was due 31 July 22. Because I only have the approx. £4000 that was not PAYE in 2021/2022, it seems like £1000 total is too much to pay. Should I pay it and then get a refund? Or complete the tax return and pay a reduced amount? Many thanks for your help
Posted Tue, 01 Nov 2022 14:24:33 GMT by HMRC Admin 17

Hi,
 
If you are resident in the UK and self employed at the time you received teh freelance work, you would treat this income as self employment
and add it to the self employed turnover. 

If you paid foreign tax on this income, you will need to complete the section of SA106 "Foreign tax paid on employment,
self employment and other income".

You can use the official currency exchange at:

HMRC exchange rates for 2022: monthly  . 

If you have paid your payments on account, please submit your tax return and if you have overpaid tax, we can refund it to you.

Thank you.

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