Is the foreign income for the holiday before the contract ends taxable in the UK?

I was a teacher from Hong Kong. I immigrate and arrived UK at 15 July, that is the start of the summer holiday. I still have the salary for July and August despite I quit the job and the contract ends at the end of August. I need not do anything about the school work after I arrived in the UK. Is the income, from 15 July to the end of August, taxable in the UK? I ask the question because I didn't work after 15, July. It is the salary for the holiday. If not taxable, then do I need to declare? Thank you very much.

Hi,

If the salary is for work actually carried out in Hong Kong, you do not declare this in the UK.

Thank you.

Thank you very much for the reply. Yes, the salary is for work actually carried out in Hong Kong. Since the salary transfer to my bank account while I was moved to UK. Should I need to declare in parts of tax return like "Any other information"?

Hi,

As the payment relates to work actually carried out in Hong Kong you do not declare it in the UK.

Thank you.

May I ask if in my case, I moved to UK on 16 July 2021. I was on sabbatical leave till Oct 2022 and contract ended then. I didn't work after I moved to UK. However, I receive bonus and holiday pay for my work carried out in Hk till Oct 2022. In my case, do I need to declare and report the income?

Hi,

You will need to review the guidance at RDR1, to determine your residence status and to find out if split year treatment applies. If you are deemed resident for the full tax year of 2021 to 2022, you would need to declare your UK income and any income remitted to the UK up to 5 April 2022.  You will be considered resident for the full tax year 2022 to 2023, any foreign income remitted to the UK in that period will need to be declared in a Self Assessment Tax Return along with UK income.  

RDR1 guidance can be found at

Residence, domicile and the remittance basis: RDR1

Thank you.

Thank you for your reply. I went through the test that i am tax residence as i stayed in UK more than 183 days in the tax year of 2021 to 2023. At the same time, i am eligible for split year treatment of case 8, i.e. started to have a home in UK. I have overseas income based on work in HK before i moved to UK. Is this income taxable? need to report in self-assessment form? Thanks

Hi,

If split year treatment applies, then you do not need to include income from the non resident part of the tax year. You will need to complete SA109, to claim split year treatment.

You can find this here.

Self Assessment tax return forms

If you want to submit the SA109 online, you need to purchase 3rd party software to do this.  

A list of commercial software providers can be found at:

Self Assessment commercial software suppliers

Thank you.
 

Thanks HMRC. I went thru the guidance again. May I recap my case here and i am not sure if i have to fill in self-assessment and SA109. I arrived UK from 16 July 2021 with BNO Visa. During tax year 2021-2022, I stayed in UK around 250+ days and thus, i am UK resident. I am also eligible for split year treatment case 8. However, all my overseas income arising from work done in HK before I come to UK. I took sabbatical leave and contract ends in 2023. I understand in 2022 to 2023, i am liable to worldwide income under UK tax law. I am confused by how to report 2021 to 2022 tax. First, all my income is from work in UK and dividend income is too small (below 1k). Do i still need to complete self-assessment and SA109? Since i am not eligible for OWR, is it the case that i have to report split year under arising basis? Thanks, Crystal

Sorry for typo in the post i made 3 days ago. For third paragraph, it should be "First, all my income is from work in HK and dividend income is too low (below 1k). Do i still need to complete self-assessment and SA109?" Thanks

Hi,

If all of the overseas income you received in 2021 to 22 arose from work done in Hong Kong before you arrived in the UK, and the UK income you received in the UK part of the year was less than £1000, you would not be required to complete a 2022 Self Assessment tax return.                                                                    

Check if you need to send a Self Assessment tax return

Thank you.