New immigrant to UK (non tax resident first year) but worked in a PAYE job

Need help from HMRC with following situation: - I am a new immigrant to the UK arriving December 2022. Having checked in HMRC website, I am not tax resident for year 2022/23. Hence won’t need to file a self assessment. (Eg for income before entering the UK and any CGT/foreign/dividend income in the year) - I am on a a job starting Feb 2023 and it was paid via PAYE. Seems an emergency tax code was assigned by employer hence my pay was deducted 20% at each payroll. - will I still enjoy my 2022/23 personal tax allowance in the above situations? - how will I be able to claim back the 20% deduction then? - do I need to change to another tax code for 2022/23? Much appreciated.

Hi Jin Lee,

You will need to complete a 22/23 tax return at some point after 5 April 2023, including the residence section, to claim split year treatment.  
Any income or gains arising in the UK are taxable in the UK.
You would need to declare this income and tax deducted on the self assessment tax return, claiming personal allowances, so that any overpaid tax can be repaid to you.  
You can register for self assessment at (Register for Self Assessment).

Thank you.

 

Thank you very much. It helps. Can you please explain : “Any income or gains arising in the UK are taxable in the UK.” I have bank saving account overseas with interest. Under my situation are these not needed to be assessed in my first year? Ie only declare the income made in the UK?

Hi,

When you complete your 2023 tax return, you should declare all worldwide (ie both UK and overseas) income received after you arrived in the UK, including any overseas interest received following your arrival in the UK.                                        

Tax on foreign income

Thank you.

Hello, in an answer above, it is stated that: "When you complete your 2023 tax return, you should declare all worldwide (ie both UK and overseas) income received *AFTER YOU ARRIVED IN THE UK*, including any overseas interest received following your arrival in the UK." I have a related question and would be grateful for advice. I immigrated to the UK on June 26, 2022. Before that, I was not a tax resident (had been living in my original country). I have overseas interest so will file a self assessment for 2022-2023. May I ask if I only need to declare the interest received from June 26, 2022 onwards, i.e. no need to declare the interests gained from Apr 6 to June 25, 2022? Does split-year treatment apply to me? I've read the info on the HMRC website and it seems that the info is not specifically about people newly immigrating to the UK, so I am not sure if I need to fill out any form or do anything to apply for split-year treatment, or is it OK for me to just declare the interest received after my arrival in my self assessment return. Thank you in advance for your advice.

Hi CCHKI,
If you qualify for split year then you only report any foreign income for the UK part of the year:
RDRM12000 - Residence: The SRT: Split year treatment: Contents
If you do not qualify then you will need to report all your foreign income to the UK:
Tax on foreign income
The guidance at RDRM12150 at www.gov.uk will help you work out if split year treatment applies. to claimn split year, you must include the residence section of the tax return SA109.
Thank you. 

 

  

Hello, thank you very much for the reply above. May I ask some follow-up questions? 1. After submitting the SA109 form, will I be notified whether I can claim split-year treatment? How long does it take for me to know? 2. If I need to have approval to claim split-year treatment, does it mean I have to wait till I’ve got my approval before I can file my self-assessment on the HMRC website (otherwise I would not know whether to report some income)? Do we normally need to submit SA109 before filing self-assessment on the HMRC website? 3. Am I correct that if I file my self-assessment online on the HMRC website, I must also submit SA109 online but not in hard copy? If so, can I use a software just for SA109 but not for the main self-assessment (as I already filled out some parts of the form on the HRMC website). 4. When is the deadline to submit SA109? Is submitting it now for 2022-2023 too late? 5. If I don't claim remittance basis, am I supposed to leave the Domicile and Remittance Basis sections of SA109 blank? Thank you in advance for your kind advice!

Hi,

The SA109 is used to claim non residence, split year treatment and remittance basis, as well as claim personal allowances where you meet the criteria.

You have to decide whether split year treatment applies to you, before you submit your tax return. HMRC will not make that decision for you. If you have reviewed the guidance and split year treatment applies, you claim it in your SA109 along with the rest of the tax return. You can find the guidance and statutory residence tests here:

RDR3 Statutory Residence Test 

You cannot use the HMRC online tax return if you have to submit the residence section. You either submit the whole tax return on paper or the whole tax return online, by buying  commercial software. You can only use the commercial tax return if you have a government gateway user ID and password or can obtain one.  

If you cannot verify your identity, you have no choice but to submit a paper tax return. You can find a list of commercial tax return suppliers, as well as paper returns to download, here:

File your Self Assessment tax return online

Thank you.