Split year treatment and PAYE income tax for the overseas part of the year

Dear Sir or Madam, I'd like to clarify something before submitting my self-assesment tax return. I'm a British citizen and have lived, been a uk resident and had my only home in the UK for 6 years. On 21st of January 2023 I left the UK and moved to Portugal, where I became a resident in 2023 and have my new home. I had a single income source throughout all 2022/23 tax year, a PAYE employment in the UK, which I kept even after my move to Portugal, from where I work remotely. I've done all the tests required for the self-assesment and have concluded that: 1. I'm deemed a UK resident for the 2022/23 tax year. 2. I'm eligible for split year treatment due to Case 1 (starting full-time work overseas) and Case 3 (ceasing to have a home in the UK) 3. For the aplit year treatment, the UK part of the tax year goes until 22/01/23 , and the overseas part of the tax year is from 23/01/23 until 05/04/23. 4. During the overseas part of the year, I received 3 salary payments, while working from Portugal, and, as PAYE, UK income tax has already been taken from it. My question is: According to the "Residence, remittance basis etc notes" for Box 3: "the tax year will be split into a UK part and an overseas part and you’ll pay tax only on the income arising in the UK part of the year." Since in my case this tax has already been taken, does it mean I'm entitled to claim it back somehow with my tax return? If so, what's the proper way to claim it back in the tax return form? Is it somehow related to the contents of Helpsheet 302 and/or 304 or is there another way? Thanks in advance for your support, Best regards, James

Hi
Yes you can claim it back and you need to include the residence section of the tax return along with HS302 and a copy of the Portuguese tax resdience certificate. You cannot file online with HMRC software and will need to purchase 3rd party - Self Assessment commercial software suppliers

Hi HMRC Admin 10, thanks for your response. I've already obtained the Portuguese tax residence certificate and will include it in my return. I'd like to double check the information about including form HS302. After reading carefully the helpsheets and the actual HS302 and HS304 forms, it seems to me that the form I should include is in fact HS304, and not HS302. HS302 seems to not apply to my situation since, in the form, in item 1(a)(ii) I'm stating that: "- I was resident in the UK for only part of the year 2022 to 2023 and have claimed split-year treatment by ticking box 3 in the Residence, remittance basis etc pages; and - that the Period of UK residence during 2022 to 2023 is 06/04/2022 to 21/01/2023." which is correct. However, proceeding to item 1(b) it says: "I was also resident for tax purposes, during the period referred to in 1(a)(ii) above, in another country with which the UK has a DTA ." which is not correct, since I left the UK on the 21st , and worked my first day from Portugal on the 23rd, so the Period of residence in the other country during 2022 to 2023 is 23/01/2023 to 05/04/2023 , which is not the same from item 1(a)(ii). on form HS304 on the other hand, i can state on item 1(b) that "- I have claimed split-year treatment and put ‘X’ in box 3 on the Residence, remittance basis etc pages. Period treated as overseas period during 2022 to 2023 DD MM YYYY from 23/01/2023 to 05/04/2023." and in item 2 that: "- I was resident for tax purposes, during the period referred to in 1(b), in a country with which the UK has a DTA Country of residence Period resident there during 2022 to 2023 DD MM YYYY from 21/01/2023 to 31/12/2023." which is correct and makes more sense. So, am I correct to assume that HS304 is the form I need to send along with my tax return? Also, one last question, in item 3(a) of form HS304, in the section where I list the income received and that tax that I'm claiming back, there is a statement that says: "I am: • deducting any earnings and tax stated below in arriving at the amounts entered in boxes 1 and 2 of the Employment page • excluding any other income or gains stated below from my UK tax return on the grounds that they are exempt from UK tax under the terms of the DTA above" Does this mean that I have to change the amounts entered in boxes 1 and 2 of the Employment page in my tax return ? In other words, I need to add the income over which I'm applying for relief and subtract from the total from my p60 and put in box 1 of the employment page? Similarly I'd have to add the total tax I'm claiming back and subtract from the amount of tax that was taken from the total income that comes in the p60? Thanks again for your help!

Hi,

Include the HS304 with the return. Keep the P60 info as per that given to you by your employer and then claim the relief at the residence section for the employment after you left the UK.

Thank you.