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Posted Fri, 01 Dec 2023 22:29:00 GMT by David Mears
I have some income that is classed as self-employment income, and some that is classed as miscellaneous ('casual earnings', in the field Other UK income 33). In both of these cases, a portion of those income sources comes from overseas (that is, I've received income in both GBP and USD). If I were to include my USD income in the 'foreign income' section, it would be duplicating income that I have already entered elsewhere in the form, under self-employment income and under miscellaneous income. Since the majority of my income was in USD, I would falsely appear to have a total income about twice my actual income, because of this double-counting. How should I report my income? Should I report the USD payments in the foreign income section, subtracting them from my self-employment and 'Other income' incomes? (This would of course result in under-reporting the 'Business income' for my self-employment.) Or should I convert the USD payments to GBP and include them within my GBP totals in the respective self-employment and 'Other income' sections? I am a UK resident.
Posted Tue, 05 Dec 2023 15:34:58 GMT by HMRC Admin 32

The self employed overseas income, should be converted to sterling and declared in the profits of the self employment section. If overseas tax was deducted, you should also declare on the foreign section, otherwise there is no need to declare in the foreign section. The income declared on the foreign section is not used to calculate the tax liability, but the tax paid can be claimed as a credit against UK tax liability. Although you are reporting theincome in two places you are not being taxed twice on the income shown in the self employment section.

Thank you.
Posted Mon, 11 Dec 2023 17:53:11 GMT by lsin
Hi, Following up, (1) I was just on the phone with the HMRC helpline, who said the same thing as HMRC Admin 32 above. (2) HOWEVER, I also viewed the HMRC guidance here which states very clearly that if I have ANY foreign income, then I must fill out the foreign income section (SA106). I entered that I'm tax-domiciled in the UK, not a student, and resident in the UK. The guidance tells me to fill out the foreign income section whether I say that my foreign income is from "employment" or "other" [e.g. self-employment], it doesn't make a difference. So HMRC's own guidance is contradictory. If the guidance in point (2) above is wrong, it seems important to fix it quickly. And if not, big problem. Help?
Posted Mon, 18 Dec 2023 15:17:55 GMT by HMRC Admin 19

You declare any taxable foreign income, some foreign income is exempt under the terms of double taxation treaties and therefore should not be declared.

Thank you.

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