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Posted Wed, 12 Jun 2024 17:18:22 GMT by
Hello, My client has encountered the following situation. He had income from wages in Ukraine and wants to declare it in the UK as he became a UK resident in this tax year. Additionally, he had self-employment income in Ukraine last year. His business is entirely located in Ukraine, and the self-employment income was not spent in the UK nor were there any money transfers to the UK. The accounting approach in Ukraine has different rules: self-employed individuals do not account for expenses but pay tax on income. Could you please advise whether this income should be reported on forms SA100 and SA106? Would this income be considered taxable in the UK if the self-employment was not registered end conducted in the UK? If so, how should expenses be accounted for, and which exchange rate should be used for conversion to pounds? I could not find any clarifications regarding this matter. Please provide a reference to the relevant regulations. Additionally, it is known that there is a Double Taxation Agreement between Ukraine and the UK, which states that commercial income is taxed where the business is registered. Can this provision be applied to income from self-employment registered in another country? Thank you.
Posted Fri, 14 Jun 2024 12:10:37 GMT by HMRC Admin 13
Please see guidance atPaying tax on the remittance basis (Self Assessment helpsheet HS264)   
Thank you

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