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  • Sales commission and Bonus

    Hi there, I have just moved to the UK in Dec 2021 and continue to work remotely for my HK employer, and I continue to get paid from this employer. Based on my understanding, I will be tax resident for year 2022-23. I am expecting my HK employer will be paying my sales commission in May 2022 for the sales I generated in between period of JAN ~ APR 2022 and potentially also in May 2022, a year end bonus for Jan-Dec 2021. In this case, for this sales commission and year end bonus paid to me in May, 2022, are the entire amount taxable? Or it will be by pro-rata based on my residency status? If so, how this may be split? The reason why I am asking is, I did review the overseas workday relief and see a example 5 below, So for the sales commission and year end (performance) bonus I am expecting, will part of income count as non-taxable? https://www.gov.uk/government/publications/rdr4-overseas-workday-relief-owr/overseas-workday-relief-rdr4 Example 5 In January 2017 Drey receives his 2016 performance bonus which is in respect of his duties throughout the calendar year 2016. He is not eligible for Overseas Workday Relief for 2016 to 2017 when he receives his bonus but as he earned part of it in respect of duties performed in 2015 to 2016, that part is eligible for Overseas Workday Relief . thank you kei koo
  • RE: Sales commission and Bonus

    hi there, May I have your clarifications on this? many thanks
  • SRT - Second automatic UK test

    hi there, I read RDRM11330 and need some clarifications. I moved to UK in Dec 2021 from Hong Kong and rented a house and living with my family since then. Before the move, I lived in an apartment I owned in HK between April and Nov of the current tax year. I still own this apartment and we will be using it when I go back to HK to work periodically. Even I lived in the UK home for more than 90 days, but since I've lived in this overseas home (HK) for more than 30 days in the current tax year, Am I correct that I do not pass "Second automatic UK test"? >> has an overseas home or homes in each of which they are present, (for no matter how short a period), on fewer than 30 days in the tax year, (the permitted amount of time). many thanks
  • Third automatic overseas test - Working Remotely

    hi there, I have a questions on the 3rd automatic overseas test under SRT below when you work remotely for an overseas company. >> You’ll be non-UK resident for the tax year if you work full-time overseas over the tax year and: >> >> -- you spend fewer than 91 days in the UK in the tax year >> -- the number of days on which you work for more than 3 hours in the UK is less than 31 >> -- there is no significant break from your overseas work I moved to the UK in Dec 2021 and before that I have been working in Hong Kong company for the tax year 2021/22. This HK company does not have offices in the UK and since the move, I have been working remotely for them and have no other Full time work in the UK. Do the remote work I do in the UK for the HK company considered as "work for more than 3 hours in the UK"? Since I will not be able to go back to HK due to the COVID situation, I am likely to stay in the UK over 91 day for this tax year. If this "work for more than 3 hours in the UK" consider working remotely, I am likely to pass this test. Please advise. thanks
  • RE: Split year treatment

    Thank you for your reply. And can you also confirm that in the example above, the tax rate band is Basic Rate as only the income after being an UK resident is counted (GBP50,000)? Thanks
  • RE: Sales commission and Bonus

    hi there, Thanks for your update. I did review the overseas workday relief and see a example 5 below, which seems to be matching with the questions I asked before. So for the sales commission and year end (performance) bonus I am expecting, will part of income count as non-taxable? https://www.gov.uk/government/publications/rdr4-overseas-workday-relief-owr/overseas-workday-relief-rdr4 Example 5 In January 2017 Drey receives his 2016 performance bonus which is in respect of his duties throughout the calendar year 2016. He is not eligible for Overseas Workday Relief for 2016 to 2017 when he receives his bonus but as he earned part of it in respect of duties performed in 2015 to 2016, that part is eligible for Overseas Workday Relief .
  • RE: Split year treatment

    hi Admin, Thanks for your reply. Having said that, based on the example, I am reporting GBP 50k of my overseas income after being a UK tax resident, and I am still entitle to the 12570 allowance. And the income is between £12,571 and £50,270, so it's Basic rate band. Therefore, £50,000 - £12570 = £37,430 (taxable amount) And my tax due shall be £37,430 x 20% = £ 7,486.00, right? Thank you.
  • RE: Split year treatment

    hi HMRC admin, I have a similar question that, if I am qualified for the split year treatment in the current tax year, assuming that my entire income for the tax year before becoming a tax resident is GBP 80k and my income in the UK is GBP 50k after becoming tax resident (i.e. total GBP 130k in the current tax year). I understand that I will only need to report the 50K income to HMRC, correct? And if so, my tax rate band this year should be Basic (20%) for this year, or it should be consider as higher rate band (40%)? thanks
  • RE: Residency Status

    Hello HMRC admin, Thanks again for your prompt reply. In the case I am classed s non resident for this year, do I need to fill in the Self Assessment Tax Return for year 2021-2022? Or do I have to do anything to proof that I am not a tax resident this year? Many thanks again
  • RE: Residency Status

    hi HMRC admin, Thanks again for your feedback. I read through RDRM11140 about the 3rd automatic overseas tests, and I am still unsure about this, Based on the case below, I am meeting this test, is this correct? thanks. Considering that in tax year 2021-2022, I was a resident of HK and work full time there. Moved to the UK in Dec, 2021 and continue to work remotely for my HK employer, and do not (will not) have any work locally in the UK. Base on the fact that: 1. the number of days on which I work for more than 3 hours in the UK is less than 31 (no work in UK) 2. according to RDRM11140, I have worked sufficient hours overseas in the relevant tax year (8.5 months in HK) I will meet this auto test, and hence, if considering this test alone, I will be a non-UK resident for this tax year. Is that correct? Many thanks again