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Posted Sun, 30 Apr 2023 11:46:01 GMT by Canders25
Hi. I'm a UK national living in the UK. I work on a freelance basis through an agency based in the US, but I work from home in the UK. I get paid in GBP into my UK bank account, and I do not pay US tax (so I have no need to make a claim in that regard). Does this get reported under foreign income or just the normal self-employment income section? I also self-publish ebooks. Most stores pay royalties in GBP to my bank account, but one pays me in USD to my Paypal account. Again, no taxes are paid in other countries. Is any of this counted as foreign income that needs to be declared separately from normal self-employment income? I just want to make sure I'm filling in the correct sections. Thank you for your help!
Posted Fri, 05 May 2023 16:17:18 GMT by HMRC Admin 10
This is considered self employment income and should be shown in the self employment section of a tax return, as it will be subject to UK class 2 and class 4 NIC, where the thresholds are exceeded.  
Only  if you have paid any foreign tax on this income and want to claim foreign tax credit relief against it, do you need to declare it in the foreign section (SA106) and claim a foreign tax credit relief.  
The royalties should be converted to UK pounds sterling, added to the sterling figure for royalties and reported in the self employment section of the tax return.  
If the royalties from the ebooks are a different trade to your free lance work, a separate self employment section should be used, so that you are showing 2 self employments.  
Official exchange rates can be found at (Exchange rates from HMRC in CSV and XML format).  
You are free to choose any one of the three methods of exchange, so it makes sense to use the method that is most beneficial to you.
Posted Fri, 12 May 2023 12:15:42 GMT by Canders25
That's really helpful. Thank you!

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