Spilt year treatment and foreign salary income for terminal leave.

I am sure that I am eligible for spilt-year treatment. Assume my spilt-year treatment starts on 25 Jul 2021. I know that normally I don't need to report all my income from my home country before 25 Jul. My previous employment contract ended on 31 Jul 2021. While the days between 25 Jul to 31 Jul were the annual leaves of my previous employment, also known as terminal leaves. I left my home country on the first day of my terminal leaves and came to the UK. As I am a tax resident starting from 25 Jul Do I need to file these seven-day wages in the self-assessment ? If yes, I report this in SA 102? just similar as those employment details that I worked in the UK later on? I only omit the PAYE Tax reference (Box 4) ? Thank you.

Hi sorman

The Statutory Residence Test (including the section covering Split Year Treatment) was introduced to allow individuals to work out their own residence status for a given tax year, based on detailed consideration of the relevant criteria/each SRT case.
Please work your way through the guidance at RDRM12120, link below, to determine the date on which the UK part of the year began (which will be the date from which you are required to declare your worldwide income to HMRC).        

Residence, Domicile and Remittance Basis Manual

Thank you

I checked the guidance. As I had a home in UK since 25 Jul 2022, so my residence status started from 25 Jul 2021, hence I need to report all the income from all over the world raised from 25 Jul 2022 onwards. Therefore, If I want to report the wages from 25 Jul to 31 Jul 2021 earned in Hong Kong (as the paid leave before the employment ended), where should I file? SA102 Employment section? just leave the PAYE reference (Box 4 ) blank?

Hi,
 

You will show the income on an employment page and leave the reference blank. If claiming foreign tax credit relief, you will also show the income and tax paid on the foreign page (this doesnt duplicate the income) and claim the credit  . Thank you.

Hi, Similar situation with me. My split year treatment on 22 August 2023. Can i apply non domicile and non remittance base for the year 2022/2023 and keep the salary in the home country? Thank you in advance.

Hi rainbowcclau

If you’re taxable on the remittance basis, you’re liable to UK tax in the normal way on your UK source income and gains.
But you’re only liable to UK tax on any remittances (amounts) of foreign income and gains that you remit to the UK (see below for what we mean by ‘remitted to the UK’).
If you choose to be taxed on the remittance basis you must include these remittances on your tax return. have a look at
Foreign tax credit relief and capital gains (Self Assessment helpsheet HS261), 
and
Remittance basis 2021 (HS264).

Thank you.

If I choose not go to remittance any (amounts) of foreign income and gains to the UK, I still have to report "I am a non domicile and non remittance" in my Self Assessment form? Or just simply no need to report this period of income. Thank you for your reply.

Hi,
 

For split year you still need to submit the residence page . Thank you.

Thank you for your reply. That means I have to fill three forms SA100 (self-assessment), SA106 (Foreign income) and SA109 (Residence, remittance basis etc) ? For the form SA106 - I only make a cross on Unremittable income ‘X’ in the box 1 -- If I were unable to transfer any of your overseas income to the UK, put ‘X’ in the box – and give details in the ‘Any other information’ box on your tax return or on a separate sheet What information i have to provide for HMRC reference? For the form SA109 - ‘X’ in the box 3, If your circumstances meet the criteria for split year treatment for 2022–23, put ‘X’ in the box ‘X’ in the box 6, If you have an entry in box 3 enter the date from which the UK part of the year begins or ends DD MM YYYY Is it the date started I have a home in the UK? I rented a house with effect from 22.8.2022. or 22.8.2022 after 91 days i.e. 20.11.2022 note : Case 4 Starting to have a home in the UK only – read RDRM12150 and RDRM12160 ‘X’ in the box 9, If I had a home overseas in 2022–23. ‘X’ in the box 10, Number of days spent in the UK during 2022–23. Is it count from 22.8.2022 to 5.4.2023? total 196 days ? ‘001’ in the box 12, How many ties to the UK did you have in 2022–23? only Accomodation tie '000' in the box 13, Number of days you worked for more than 3 hours in the UK in 2022–23 at as present is unemployed 'HKG' in the box 18 'HKG' in the box 19 ‘X’ in the box 40, Please give any other information in this space Spilit year treatment case 4 applies to me. Please let me know if I am correct or incorrect. Thank you.

Hi,

HMRC are unable to comment on the answers in respect of the residency section, as this is for you to decide based on the guidance available.

Thank you.

Refer to the case 4, 1 Jul as the start date of tax eligibility in UK, is it the reason of leasing agreement effective date?

Hi,

The overseas part of the tax year starts at the beginning of the tax year and ends the day before the earliest point at which an individual meets the only home test.  

RDRM12160 - Residence: The SRT: Split year treatment: Case 4: The overseas and UK parts of the tax year

Thank you.