Tax return for Self Employed with income paid with foreign currency

Dear HMRC, I started working as a self employed sole trader in UK from 2022, this is my first time filing tax return, I have a few questions hope you can help me on it. 1) I provide service to clients in Hong Kong, and I got paid by HK dollars into my Hong Kong bank account. Do I declare this income by using the "self employment form (SA103)" only? Or do I needed to fill in the "foreign income (SA106)" form too? 2) I understand I have to declare the foreign income in sterling, in addition, do I have to state clearly the income amount in HK Dollars at the "Any other information" section? 3) I work roughly about 160 hours from home for my client, is it correct that I can claim my bills (rent and electricity) as part of the expenses? Thank you so much.

Hi Siu Mai,
As a sole trader with self employment income arising from outside the UK, you would need to convert the income paid into your Hong Kong bank account into pounds sterling, and add this to the gross profit of the self employment.
If you paid tax in Hong Kong on this income, you would also declare the overseas income and tax paid in the supplementary page SA106.
 The exchange rate is not set in stone, which is why you have a choice.
Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for converting to sterling.
There are exchange rates provided by HMRC, which can be found at:
Exchange rates from HMRC in CSV and XML format
You are free to use any of the rates or obtain the exchange rate from another source, such as the London Stock Exchange or a national newpaper.
You do not need to declare the exchange rate, but you can keep that information with your accounts.
You can claim an element of your actual domestic bills, in relation to your business or use the Simplified expenses if you're self-employed.
 For the actual costs:
Take the number of rooms in your home (do not include bathrooms and kitchens) and divide the bill e.g.  4 rooms and electricigy bill £500.00.  £500.00 /4 = £125.00.
If the room you work from is used for other personal purposes, such as a bedroom.
The share £125.00 would need to be futher diluted for the number of hours used as a business over 24 hours, to find the amount that relates to your business.
This can be claimed as an expense in your tax return.
Other domestic bills can be treated in the same way.
Please have a look here:
Simplified expenses if you're self-employed
Expenses for the self employed:
Expenses if you're self-employed
Thank you