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Posted Wed, 27 Jul 2022 14:35:15 GMT by dmarenh
I am a freelancer/sole trader resident in the UK. During the tax year 21/22 I invoiced a German company for work I did whilst in the UK (I didn't travel to do the work). The company paid the German sales tax at the time. I understand that the money I reiceived is income taxable here in the UK, however, I am unsure whether I need to answer the following question on the tax return with 'YES' or 'NO': 'If you received any foreign income, do you need to complete the foreign section?' Please could you clarify? Many thanks!
Posted Thu, 28 Jul 2022 14:52:46 GMT by HMRC Admin 20
Hi dmarenh,

You would include this within your self employment income. 
If German income tax has been deducted you will also include it in the foreign page in order to claim foreign tax credit relief.

Thank you.
Posted Thu, 28 Jul 2022 18:56:32 GMT by dmarenh
Thank you for the swift response, it's much appreciated. So I understand that I should answer the above question with 'NO.' German income tax was not deducted in my case.
Posted Thu, 28 Jul 2022 20:38:46 GMT by Lost InGlobe
Hi HMRC Admin20, I have two related additional questions if you and the OP don't mind 1- What if a person works in a free tax salary country, which has a DTA with the UK, can he still claim foreign tax credit relief although his money was not taxed in his host country? 2- To declare salary income during a (split) tax year and in order to account for the first 5 days of April, should " the monthly salary *5/30" be included in the foreign income total? Cheers.
Posted Fri, 29 Jul 2022 11:38:04 GMT by Lost InGlobe
Another question, in converting the income from foreign currency to British pound, should the yearly or the monthly average be used? Cheers
Posted Mon, 01 Aug 2022 10:33:48 GMT by HMRC Admin 17

Hi,
 
You can use either  .

Thank you.
Posted Mon, 01 Aug 2022 11:23:44 GMT by HMRC Admin 17

Hi
 
dmarenh  ,
 
That is correct, you will answer "NO"  .

Thank you.

 
Posted Mon, 01 Aug 2022 11:37:48 GMT by HMRC Admin 17

Hi
 
Lost InGlobe,
 
(1)You can only claim Foreign Tax Credit Relief if tax has been paid to host country.  

(2) If you were resident abroad for the first 5 days of April you can include the 5 days salary as foreign income  .

Thank you.         
Posted Mon, 01 Aug 2022 20:53:10 GMT by Claudia Claudia
Hi, I have a homestay business in Japan, and I have some bank interest income, insurance dividends and stock dividends in Hong Kong. All income will not be remitted to the UK. We want to declare in the form of remittance basis. To declare in this form, we need to fill in the form or not and how to apply / how to get the form ? If a form is required, are all global income and each transaction details need to included in the form? And I sold a Hong Kong rental property (for rent) on November 2021. The completion date of the sold property is 17/1/2022. I arrived in the UK on 15/1/2022. I make profit on selling the property and I remitted some money after a few days of the completion date to UK. Do I need to report it? Is it I only need to report the income after 183 days I arrived in the UK that I becoming a tax resident in UK ? Thank you very much !
Posted Tue, 02 Aug 2022 08:30:54 GMT by HMRC Admin 17

Hi
 
queeniekit Tang ,
 
Please refer to guidance at :

Tax on foreign income      .

Thank you.

 
Posted Tue, 02 Aug 2022 18:19:26 GMT by Lost InGlobe
Hello Admin 17, In reference to your answer: (1)You can only claim Foreign Tax Credit Relief if tax has been paid to host country. Last year, I worked in Qatar while spending less than 183 non-working days in the UK due mainly to family issues. I was a UK tax resident during the year. Although salaries are not taxed in Qatar, I thought I am still entitled to be exempted from paying tax on my income in Qatar based on the UK-QATAR DTA , see page 25, article 14 (DTA link is given below). Is not right? If so, should I not claim Tax relief using form 109? Please clarify. Thank you DTA link: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/500345/qatar-uk-dta-2010-consol_-_in_force.pdf
Posted Wed, 03 Aug 2022 10:03:12 GMT by HMRC Admin 17

Hi
 
Lost InGlobe ,
 
Under the DTA with Qatar, the income you refer to is only taxable in Qatar (assuming you meet the conditions) and

as such should not be declared to the UK .

Thank you.

 
Posted Wed, 03 Aug 2022 10:21:45 GMT by Lost InGlobe
Thank you Admin. I thought I have to declare all my foreign incomes even if not taxable in the UK, then ask for a foreign claim relief. Could you please expand on the conditions you referred to in your message? I know I meet one of the conditions as my employer in Qatar did not have a branch in the UK. I should reiterate that my salary in Qatar was not taxed over there. Thank you
Posted Thu, 04 Aug 2022 12:17:53 GMT by Claudia Claudia
Hi, I changed the address so I didn’t received my “Short Tax Return “, but I can’t download from website, how can I get my short tax return form back ? I can go to the HMRC Birmingham ask for re-print ?? And , I set up a HMRC online account, hope can file my tax return online, but I can’t find where I can file my tax return in my account online, please help !
Posted Thu, 04 Aug 2022 14:13:34 GMT by HMRC Admin 25
Hi Lost InGlobe, 

You cannot claim foreign tax credit relief if no tax has been paid in the other country.

With regards to getting relief on the income if completing SA109, you may also want to review HS302/304

Dual residency (Self Assessment helpsheet HS302)

Non-residents tax relief under double taxation agreements (Self Assessment helpsheet HS304)

Thank you. 
Posted Thu, 04 Aug 2022 17:47:59 GMT by HMRC Admin 25
Hi Claudia Claudia, 

The short return cannot be reissued or downloaded.

If you have registered to file online, there is a section withiin your account - file your return.

once in, you will need to tailor your return to suit your circumstances. 

Thank you. 

 
Posted Fri, 05 Aug 2022 12:06:41 GMT by Lost InGlobe
Hi Admin, From 302, am i right in deducing that 1) Whoever worked in GCC, can't claim dual residency as his income in GCC is not taxed? 2) Tax relief ca NOT be claimed on salaries,see (1 below) The above surprised me as I was advised by a tax adviser that I can claim Foreign Tax Credit. They charge a lot for their services and the outcome is not guaranteed.... (1): You can claim relief on the following types of income: interest from bank and building societies royalties most work pensions annuities UK dividends
Posted Fri, 05 Aug 2022 12:19:33 GMT by Lost InGlobe
Hello Admin, In regard to your answer >> You cannot claim foreign tax credit relief if no tax has been paid in the other country Article 14 in the DTA link states otherwise, could you please check it to explain please what is wrong with my conclusion? Many thanks for your time. DTA link: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/500345/qatar-uk-dta-2010-consol_-_in_force.pdf
Posted Fri, 05 Aug 2022 13:22:17 GMT by Lost InGlobe
Hi, Sorry to be so blunt as I am really lost and so tired, but being a UK tax resident with no income while working fully time in Qatar during the same tax year, Is there any case I can claim to avoid paying full tax on my overseas income? One tax adviser claimed so but he quoted his service for 2k+VAT. I dread paying this amount for no positive outcome at the end Cheers
Posted Sat, 06 Aug 2022 15:13:37 GMT by Claudia Claudia
Thanks for reply, but I can’t find the section “ file your return” in my online account, can you show me where I can get it, how can I make a return with the short tax return ? Thank you.

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