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Posted Wed, 03 May 2023 21:47:29 GMT by W.M. Yeung
I'm a BNO visa holder and I have been in the UK studying for a full-time degree since September 2022. During this time, I have also received service fees from a Hong Kong company, from September 2022 to April 2023. I have set up a business tax account, applied the UTR and I'm going to fill in the tax return. However, I'm not very sure if I have to pay the tax because I'm paying the international student tuition and I find that "Foreign students usually do not pay UK tax on foreign income or gains, as long as they’re used for course fees or living costs". Could you please advise if I have to complete the tax return? If yes, which form(s) should I use for my situation?
Posted Wed, 10 May 2023 13:55:00 GMT by HMRC Admin 19

The income needs to be solely for the purpose of your education and living costs and cannot exceed £15000, no matter how many sources of income, in order to be tax free.

Thank you.
Posted Wed, 10 May 2023 17:40:35 GMT by W.M. Yeung
Hi, Thank you so much for your reply. I am a self-financed student, and my income is used for my tuition and accommodation costs. However, my total income exceeds the mentioned £15,000 threshold. Could you please advise whether only the amount exceeding this limit would be subject to tax, or if exceeding the limit makes the entire amount taxable? If only the amount exceeding the limit is taxable, does my personal allowance still apply? I appreciate your guidance on this matter. Many thanks!
Posted Wed, 17 May 2023 13:08:23 GMT by HMRC Admin 32

Have a look at the guidance below as HMRC might ask you to account for your living costs (excluding course fees) are more than £15000.

Tax on foreign income

Tax would be deducted in the normal way. You would report the full amount of foreign income and personal allowances would be set against this income in a Self Assessment Tax Return.

Thank you.

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