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Posted Mon, 02 Oct 2023 11:57:09 GMT by Dmytro
Hello. Need advise regarding Self Assessment for 2022/2023. I arrived to UK on May 14 2022 to sponsors under Homes for Ukraine Scheme. Lived with sponsors in their house for only 14 days, after that ~35 days in hotel and ~12 days in temporary apartment given by Council. On July 19 2022 signed long term Tenancy Agreement for apartment, in which I've been living for more than a year already. From May 2022 to Feb 2023 I was receiving income in Ukraine as Ukrainian Self-Employed, all of this income was brought to UK (used Ukrainian bank cards in UK) and I want it to be properly taxed here in UK. I registered as Self Employed in UK too and since Feb 2023 I'm only having income as UK Self Employed. I would like to apply Case 8 Split Year Treatment. First 3 conditions are satisfied: I'm UK Resident for 2022/2023 (183+ in UK), wasn't UK resident in previous year, will be UK resident for full 2023/2024. 4th condition is: "4) have no home in the UK at the beginning of the tax year but start to have a UK home at some point during the tax year and continue to have a UK home for the rest of the tax year and all the following tax year" Question 1: I would like to get advise what is considered a UK Home in my case? Is it the apartment I rented on July 19 2022? Just want to make sure that sponsor's house under Homes for Ukraine Scheme, in which I lived for 14 days, isn't considered as UK home for Case 8. 5th condition is: "5) not have sufficient UK ties to make them UK resident in the period from the 6 April to the point they start to have a UK home..." Question 2: My income from Self Employment in Ukraine is considered as Foreign Income, correct? Question 3: If my Self Employment in Ukraine is considered as Foreign Income, it means that while I had income only from it I didn't have Work tie in UK? Question 4: If my Self Employment in Ukraine is considered as Foreign Income, do I need to pay National Insurance on it? Thank you in advance
Posted Fri, 06 Oct 2023 10:40:45 GMT by HMRC Admin 20
Hi Dmytro,

1. A home can be a building, or part of a building, a vehicle, vessel or structure of any kind which is used as a home by an individual.
It will be somewhere which an individual uses with a sufficient degree of permanence or stability to count as a home. as the sponsors house was only for 14 days, this doesnt meet the criteria as there was no intention of permanence.  
2.  Yes , if you have paid tax in Ukraine  
3.  No, it will be classed as UK employment as you need to show it as self employment on the return.  
4. Yes, depending on what your profit is. You need to show it as self employment only if no foreign tax paid but if you have paid foreign tax, you will also show the income as foreign income in order to claim the foreign tax credit relief.

Thank you.
Posted Fri, 06 Oct 2023 15:32:33 GMT by Dmytro
Thank you for your response. Want to add that I've paid all needed taxes in Ukraine on Ukrainian self employment income. Would like to clarify last 2 questions Regarding question 3: I'm interested whether Ukrainian income earned from Ukrainian self-employment from April 6 2022 to July 19 2022, on which I paid taxes in Ukraine, would be a "Work Tie" in UK for me if I want to apply for Case 8 Split Year Treatment from July 19 2022? (From April 6 2022 to July 19 2022 except Ukrainian income from Ukrainian self-employment I did not have other income, July 19 2022 is the date I signed Tenancy Agreement for apartment) Regarding question 4: Do I understand correctly that if Ukrainian tax was paid on Ukrainian income from Ukrainian self-employment it means that this income isn't a UK self employment income, but a Foreign Income? If it is a Foreign Income (since I paid Ukrainian taxes on it) do I have to Pay National Insurance on it in UK? Also would appreciate help with 2 new questions regarding Case 8 application: Question 5 (Accommodation Tie): From my arrival to UK on May 14 2022 and until July 19 2022, as mentioned in initial post, I lived 14 days with UK sponsors, ~35 days in hotel and ~12 days in temporary apartment given by Council. I did not have Accommodation Tie up to July 19 2022, correct? Question 6 (Family Tie): I arrived to UK with wife and kids (less than 18 y.o.). Should I check if my wife was UK resident for tax purposes for the same non-UK period (from April 6 until I got UK home) in order to apply Case 8? Or her tax residence for Case 8 should be checked for the whole 2022/2023 tax year? Thank you in advance for your help!
Posted Fri, 13 Oct 2023 13:20:10 GMT by HMRC Admin 20
Hi Dmytro,

HMRC cannot advise you on matters regarding your residence as that is for you to determine based on the guidance available.
With regards to the self employment from Ukraine, as tax was deducted on this, you will declare this as self employment in order for the income to be included in the calculation and also as foreign income in order to claim the credit for the tax deducted. This does not duplicate the income.

Thank you.
Posted Wed, 22 Nov 2023 19:16:50 GMT by Dmytro
Could you please help me one more time with one of the questions, which still isn't clear for me from answers above, cause I see a lot of different information on forums. After I arrived to UK I was providing online services to my clients (from other counties) as Ukrainian self-employed and I payed all Ukrainian taxes on income from such services. From the answers above it seemed that I should declare such income in both Foreign Income and Self Employed sections. I've bought 3d patry software (from recommended list at HMRC website) in order to fill SA106. When I included income from Ukrainian self-employmnet in SA103 (Self Employed) and SA106 (Foreign Income) is was used twice in calculation. After reaching application's support team I was told that in order to avoid duplicates Foreign Income should only be included in SA106 (Foreign Income), but not in SA103 (Self Employed). I applied such changes and according to calculations available in softwave National Insuranse isn't calculated on my Foreign Income. Could you please confirm that I don't need to pay National Insuranse on such income?
Posted Fri, 24 Nov 2023 09:07:57 GMT by HMRC Admin 25
Hi Dmytro,
You should declare the foreign self employment income on SA103, in pounds sterling.
So the Self Assessment can include the profits into the tax calculation.
You also complete SA106 (foreign) to declare the tax deducted in Ukraine, so that you can claim a Foreign Tax Credit of up to 100% of the foreign tax deducted.
 The guidance notes (SA106) advise "If you’re claiming Foreign Tax Credit Relief on income included elsewhere in your tax return, fill in the columns below and say in the ‘Any other information’ box (on page TR 7) where on your tax return this income is included.
The country or territory  codes are shown in the ‘Foreign notes’.
Make sure that the foreign tax being claimed is the ‘minimum’ due under the laws of the foreign country after all deductions, exemptions, reliefs and allowances have been claimed".
Foreign notes
National insurance is payable on the foreign profits of the trade, as the profits are taxable in the UK.
Thank you.
Posted Fri, 24 Nov 2023 16:47:37 GMT by Dmytro
Thank you for fast response

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