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Posted Sun, 02 Jun 2024 18:25:31 GMT by SSS
Dear HMRC Team, I have a few important questions and expecting step-by-step responses. I am non-domicile resident in UK. My nationality is Indian. I moved to the UK in January 2022. I never transferred the following amount from India to the UK. Below amounts were credited to my Indian account (INR). My circumstances- 1. In tax year 2023-24, I was a full-time permanent lecturer in the UK (skilled worker visa). In addition to this work, I took one part-time temporary visiting faculty role in India for 25 days and earned around £1890 (working hours were less than 20 hours per week). Additionally, I was an online external examiner for PhD thesis and guest speaker for expert talks at different places. With these services, I earned around £280. Indian universities deducted the tax and I also filed an Income tax return in India as a Non-residential Indian (the Indian government will refund my tax, as my total yearly Indian income is less than £3000). 2. In year 2023-24, one of my Life Insurance policies matured after 20 years. and around £1389 (converted from INR) was credited to my Indian account. As per the Indian government, this matured amount is tax-free. Now my questions- 1. In the self-assessment form, should I select 'self-employment' or 'other option'? 2. In the above cases, please advise in what category I can put these amounts in the self-assessment form. 3. I understand about double tax treaty between the UK and India. Please advise, on how can I get back my tax amount in the form of foreign tax credit (please provide a detailed description over it). I searched a lot about it, but no clarity anywhere. 4. I spent amount on flights, local travel, and food during traveling while working as a visiting faculty in India. Can I claim per diem expenses? Please note, this work was not related to my current employer in the UK. 5. Will my Life Insurance policy matured amount be considered tax-free in the UK also? As I paid premiums for over 20 years when I was not in the UK. These questions are crucial to me and expecting a detailed specific reply. Thank you
Posted Wed, 05 Jun 2024 12:52:24 GMT by HMRC Admin 25
Hi SSS,
1& 2.declare this as self employment.
3. As you state India will refund the tax deducted you do not claim relief in the UK.
4. Please refer to:
Expenses if you're self-employed
5. Please refer to:
HS321 Gains on foreign life insurance policies (2024)
HMRC cannot provide answers to specific questions on this forum as it is for general guidance only.#
Thank you. 

 
Posted Wed, 05 Jun 2024 17:18:51 GMT by SSS
Dear HMRC Admin 25, thanks for your answers and these are really useful. In regards to Question 3 I read somewhere that as per the double tax treaty between the UK and India, we can claim for foreign tax credit (even if we paid tax in foreign on that foreign income and the tax was refunded due to the total foreign income is less than their income tax threshold- for example, £12570 is the threshold in the UK. Similarly, that threshold in India is INR 300000). In principle, I paid taxes in India. Kindly clarify over it. Additionally, I saw one different tax rule for UK Professors/Lecturers taking visiting faculty roles/guest lectures in foreign countries. https://www.gov.uk/hmrc-internal-manuals/international-manual/intm163210. Could you kindly highlight over it?
Posted Fri, 07 Jun 2024 13:27:21 GMT by HMRC Admin 32
Hi,

Foreign Tax Credit Relief is only available if foreign tax has actually been deducted. as you state India have refunded the tax deducted, you have not paid any in order to claim tax relief. The only exemption on this is income from NRE accounts.
For the teacing income, please refer to Article 22 of the DTA.

UK/INDIA DOUBLE TAXATION CONVENTION SIGNED 25 JANUARY 1993

Thank you.
Posted Fri, 07 Jun 2024 23:44:14 GMT by SSS
Dear Team HMRC, Thanks for your time and clarifications. However, I still have a few doubts- 1. As per your answer- I can't claim tax credit relief in the UK (as India refunded my tax amount), but I have to pay tax in the UK on complete foreign income again. For example- if I earned £2170 in India then I need to pay 20% tax on £2170 (in case I am a base rate taxpayer) and for that not tax credit/relief? Kindly clarify. Additionally few other questions- 2. As this additional foreign income, I earned through visiting lectures and external examiner evaluations. I am declaring this income as self-employed in the UK. You told me I can claim for my expenses during my visit to India, https://www.gov.uk/expenses-if-youre-self-employed. As this is not a registered business (self-employment) in India, i.e. only an Indian organization invited me for temporary lectures. Is it legal to mention it self-employment (I know, if you are telling then definitely it will be okay). However, need clarification. 3. If the 2nd point is correct then, I have tickets for some expenses (air, train). However, I don't have food bills and local travel tickets. Could you kindly redirect me to any webpage where I can find information like without ticket/bills how much amount we can mention for tax relief? 4. Another point is- can I use this income as trading income, https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income? If yes, then I need to pay tax on complete foreign income or £1000 less than what I earned (e.g. tax on £1170, in place of £2170). I know, I need to declare a complete £2170. Kindly clarify on above points. My motive for these questions is to know about my accurate tax liability to avoid future problems. Thank you once again.
Posted Wed, 12 Jun 2024 12:49:30 GMT by HMRC Admin 10
Hi
Yes you can declare this as self employed. If claiming the £1000 trading allowance you cannot claim any other expenses against this source and this would negate the need for any receipts.
Posted Wed, 12 Jun 2024 14:28:56 GMT by SSS
Thanks, HMRC Admin 10, for your answer. I appreciate it. However, I would like to go via my above Point 3 (as my flight cost and local expenses were more than £1000). Kindly redirect me to a website where I can find information related to this claim (without receipt). Thank you very much.
Posted Fri, 14 Jun 2024 10:59:37 GMT by HMRC Admin 32
Hi,

If you have no evidence to support the expenses, you would not be able to claim.

Thank you.

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