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Posted Thu, 06 Aug 2020 00:02:52 GMT by Alec
There appears to be somewhat inconsistent guidance in the assisting notes with regards to declaring foreign social security payments on the self-assessment form. I was hoping someone could clarify as my only foreign income was overseas job seekers allowance (paid by a foreign state). The notes for document SA150 state, in one of the bullet points that you should fill in the foreign pages section if "You received overseas pensions (not lump sums from pension schemes), social security benefits and royalties" However the guidance notes for document SA106 state (the foreign income section) Do not include foreign benefits that match the following UK benefits: * Universal Credit As Job Seekers allowance in NZ is the equivalent to Universal Credit, would it be the correct interpretation be to follow the SA106 guidance (where equivalent benefits to Universal Credit is excluded) and select NO to the question in SA150: "If you received any foreign income, do you need to complete the foreign section?" Or would HMRC prefer the broader catch-all guidance in the notes of SA150 and select YES ?
Posted Thu, 06 Aug 2020 12:20:33 GMT by HMRC Admin 8
I think that the issue here is that the UK still has both JSA (which is taxable) and Universal Credit (which is not taxable).
If your payment is the equivelant to Universal Credit then you should not include it as it will not be subject to UK tax. If, however it is equivelant to JSA - then it will need to be included. This would be up to you to determine this.
Posted Thu, 06 Aug 2020 22:34:57 GMT by Alec
Thank you for your help, that is much appreciated. You are correct JSA in NZ is a taxable income, and therefore as you suggest would be the equivalent of UK JSA. However, I am no longer the UK resident (only resident first half of that year) and I was a NZ resident during the the time of receiving NZ JSA (second half of the year). Therefore I believe double taxation agreements prevent this income from being taxed in the UK (as taxes withheld at source). In such instances do I still fill out the foreign income section? Would I also be required to submit a HS302 (dual residence) form ? Can the HS302 form be submitted online ?
Posted Fri, 07 Aug 2020 10:17:12 GMT by HMRC Admin 8

If you  meet the conditions for being a UK resident for the year when looking at the Statutory Residence Test, but are able to claim split year treatment - you are correct you would not need to declare the NZ JSA at all as it was received in the non-UK half of the year.

If you had no foreign income in the UK part of the year there is no need to complete the foreign section of the return.

You would not need to complete an HS302.

Posted Sat, 08 Aug 2020 00:27:09 GMT by Alec
Thank you, your help is really appreciated. I believe that I should be able claim split year treatment. One last question, is there any extra form that I need to fill in to demonstrate a split year ?
Posted Tue, 11 Aug 2020 16:09:47 GMT by HMRC Admin 10

If you are claiming split year treatment then you will need to complete a Self Assessment Return by completing a SA109 Residence Remittance page.

Please refer to the following links:

Tax if you leave the UK to live abroad

RDR3 Statutory Residence Test

Residence, remittance basis etc (Self Assessment SA109)#

Thank you.

Posted Wed, 12 Aug 2020 04:16:16 GMT by Alec
Thank You, I have tried to read through the documents and I think I understand the forms. Just want to check for SA109, for a clean simple split year treatment (ie Not relying on DTA, no income from another country besides one I reside). The only relevant sections is box 1-14, 17,18 and box 40 ?
Posted Wed, 12 Aug 2020 12:31:37 GMT by HMRC Admin 4

Yes this would be correct. 

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