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Posted Tue, 10 May 2022 03:58:09 GMT by TT JB
Hi I am self-employed for my consultancy services to my client which is a Hong Kong company. I get HK dollars from my HK bank account in return for my services. I earn £ 24,000 from the tax year 2021/22. In this case, are these earnings considered as "foreign income"? Do I need to fill in the form SA106 "foreign" ADDITIONALLY to declare this income, or only fill in SA100 self assessment? And, in this case, am I eligible for applying Remittance Basis if these earnings do not remit from Hong Kong bank account to the UK directly or indirectly? Kindly give me some guides, thanks a lot!
Posted Fri, 13 May 2022 14:15:50 GMT by HMRC Admin 28
Hi,

Yes these would be considered foreign income. They would be reported on the self employment section of the return and you would only need to complete the SA106 foreign section to claim foreign tax credit relief for tax already deducted.

Guidance on the remittance basis can be found here:

Residence, domicile and the remittance basis: RDR1

Thank you.
Posted Wed, 18 May 2022 06:10:15 GMT by TT JB
Hi, Two follow-up questions: (1) Someone says even I get HK dollars earnings from HK, as long as I perform duties in the UK, this is not considered as foreign income, and these earnings are considered as income in the UK. Can you confirm once again, in my case, the earnings from HK (but physically work at home in UK) are classified as "foreign income"? It is very important to clarify it, as this will affect whether or not I can claim for Remittance Basis or not. (2) Regarding to SA106, if I do not need to pay any income tax on HK side (as my taxable income is below my allowance in HK), then I do not need to claim for any tax credit relief in UK, and so I do not need to fill out SA106 form, am I correct?
Posted Wed, 18 May 2022 13:50:47 GMT by HMRC Admin 10
Hi
Guidance on remittance basis and also foreign earnings has already been shared.
If you are still unsure of your position my advice would be to contact a technical officer at your tax office who can discuss in more detail and advise you based on your full circumstances.
Self Assessment: general enquiries
Thankyou.
Regards.

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