Foreign Interest income

Hi HMRC, I am writing to enquire about the foreign income under the self assessment tax return. My wife and I are UK residents since July 2021 and our only incomes during the tax year 2021-22 were tiny amounts of interests generated in our bank accounts in Hong Kong. The actual amounts of the interests were around 8 pounds and 0.2 pounds per my wife and I respectively. At that time I made use of the *Check if you need to send a Self Assessment tax return* on the HMRC website and did not realise the interests from Hong Kong account was classified as *Income from outside the UK*. Due to the misunderstanding of the wordings of the item, we didn’t file self assessments for tax year 2021-2022. However, we did file the self assessments for the year after. Could you please advise should my wife and I file the self assessments for tax year 2021-22 at this point and if so could you please advise can we do it online or which form we have to fill in ? Thank you for your help in advance. Fu

Hi fcfu305,
If you qualify for split year then you only report any foreign income for the UK part of the year:
RDRM12000 - Residence: The SRT: Split year treatment: Contents.
If you do not qualify then you will need to report all your foreign income to the UK
Tax on foreign income
The guidance at RDRM12150 at www.gov.uk will help you work out if split year treatment applies. 
Thank you. 

 

 

Hi HMRC, I have registered the gateway account and received the UTR, filed the self assessment for tax year 2022-2023, however I found that I couldn’t find the option for me to file the self assessment for the previous tax year 2021-2022 as explained above, could you please advise is there any chance I can file it online or I have to send a hard copy form and where can I download the form?

Hi fcfu305,
You cannot now file this online and will need to submit a paper tax return -Self Assessment tax returns
Thank you.

Hi HMRC, Thanks for your advice earlier, so I have received the self assessment form for year 2021-2022 to report my only income which was the foreign interest income as mentioned before. However, I found that it only allow me to fill in the integer and got the “.00” pre-printed on the form in the foreign income section. As my total foreign interest income was £0.53, could you please advise how should I fill in this section or do I need to file the self assessment form in this case? The foreign interest income is the only section to be filled in this form for my self assessment for year 2021-2022. Thank you in advance.

Hi,

You only need to include whole pounds on the tax return, so you should round up or down to the whole pound in your favour.

Thank you.

Hi, I am living in UK from last 5 years. I am tax resident in UK. My mother now gave me gift money in Pakistan. The interest on that money I am getting is £15,000 per year. The Withholding tax of 35% already deduct on interest in Pakistan. I am not tax registered in Pakistan. My income in the UK is £25,000 per year. Do I need to register for self assessment in the UK as I am on skilled worker visa? Secondly, Can I avail tax credit relief of 35% already paid in Pakistan. The proof I can provide is the bank letter stating amount of withholding tax deducted on my interest payment.