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Posted Wed, 17 Jan 2024 22:08:00 GMT by
Good evening, May I ask your help with the following: (1.) Background: - Ukrainian who live in the UK from June 2022 till now - continue to work remotely as an employee for Ukr company that does not have permanent establishment in the UK - receiving payments into Ukr bank account into local Ukr currency and spending them here in the UK using the same bank card - paying all your come taxes and social security payments in Ukraine - no other sources of income, no UK income (2.) Questions: - does SA required or should that income needs to be declared under Direct Payments Scheme? - is Foreign tax relief available in relation to tax paid in Ukraine? - is remittance basis applicable in relation to this type of income? Thank you very much for your help
Posted Mon, 22 Jan 2024 11:05:38 GMT by HMRC Admin 32

As the money is being remitted to the UK, this is taxable in the UK even if using the remittance basis. You will show this as self employment on the tax return. If foreign tax paid, you will also complete the foreign section in order to claim Foreign Tax Credit Relief.

Tax on foreign income

Thank you.
Posted Tue, 23 Jan 2024 23:01:57 GMT by
Thank you for your reply, May I clarify with you: - employment income should be reported under self-employment section within the return - setting up of Direct Payment Scheme is not required for the employee of a foreign company without permanent establishments in the UK - as the income would be reported under self-employment section, what income would you suggest to report within Foreign income section - Article 15 of UK-UA double taxation agreement gives the UK primary right to tax the income as the employment has been exercised in the UK, so what legislation would allow Foreign tax relief Thank you very much
Posted Fri, 26 Jan 2024 14:21:58 GMT by HMRC Admin 25
Hi Oleksandr Gr
If the income has already been taxed abroad, you declare it under the self employed income and also the foreign section.
Tick to claim Foreign Tax Credit Relief and enter the amount of tax paid.
All income must be converted to sterling.
Thank you. 

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