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Posted Sat, 15 Jun 2024 11:58:19 GMT by stanleybaggio CHAN
I had a service contract with a company outside UK and has no UK presence. The service was carried out in UK home. The company only has to pay for the service fee and no liability to any of my benefit such as medical. I only need to work up to certain hours in a week. When i prepare for the personal Self-assessment , i have question that i should put this income as employment or Self employment? I understood income tax rate should be same for both while Self employment also has to pay for NI. If it is consider to employment, only employee NI needs to be paid but pay through PAYE system. The employee NI rate should be same as that in Self employment. The income tax plus NI should be same in both case but it seems easier to pay everything through self -assessment rather than go creating a PAYE account.
Posted Wed, 19 Jun 2024 12:54:46 GMT by HMRC Admin 19 Response
Hi,

You will need to confirm if you your service contract is a contract of employment or whether it is an agreement allowing you to provide a service to your client. You can use the tool below to help you determine if you are employed or self employed:  

Check employment status for tax

Foreign employment income is declared on SA102 and foreign self employment income on SA103. If you are required to pay foreign tax on either source of income, this is declared on SA106 and a foreign tax credit claimed.

Thank you.

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