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  • RE: Split year treatment

    Hi, About split year treatment, I saw other posts on this forum saying that if you meet the criteria for split year treatment, then you do not need to include the part of overseas earnings in the tax year before entering the UK, is that right? For example, from 04 April 2021 to 06 June 2021, I was in the USA and earned USD 5000, then from 07 Jul 2022, I started living in the UK and started my own business here and got GBP 18,000 turnover until the end of this tax year. So I need to fill in the page SA 109 to apply for Split Year Treatment (as I know I meet the criteria), so I just report the income of GBP 18,000 under the self-employed page, so for USD 5,000 earning aboard, do I need to report to "foreign income" page? So first we need to put a"X" on box 3 on the SA109 page to claim for Split year treatment so that HMRC will know that I am having TWO parts of income earnings split up into TWO parts in the Tax Year, am I right? Then, HMRC will base on the information on box no. 3 to 14 on the SA109 to differentiate which parts of earnings are overseas' part, and which are from UK part, and finally those earning from UK part will be outlined for tax calculation, is that right? So, to sum up, even we claim for Split Year treatment, we still need to report ANY income earnings throughout the Tax Year, no matter it's from UK, or overseas. Please correct me if anything wrong. Thanks.
  • RE: Self Employer

    Thank you. If I know that eventually, I don't need to pay any taxes in Hong Kong or taxes that have been waived on the side of Hong Kong Tax Authorities, then on the SA106 page, I just need to fill in my foreign income part (on Page 2) and leave the part "Foreign tax paid on employment, self-employment and other income' in BLANK (on page 6), is that correct?
  • RE: Self Employer

    Hi, Suppose I don't have other incomes except HKD 240,000 (suppose equivalent to £ 24,000) in the tax year 2021/22 from offering consultancy services for HK clients and getting HKD earnings, and this full amount did not be remitted to the UK. And, I don't need to pay income tax in HK as this earning amount is below my personal allowance in HK. In detail, to complete SA100, some key points are as below: First, I should write a number "1" for Box 2 ("Self Employment") , and then put a "YES" on Box 8 ("Residence, remittance basic, etc"), put a "YES" on Box 9 ("Additional Information") , then on " Marriage Allowance" section, I fill in my spouse details. After that, on Box 19 "Any other information", write "I want to claim for Marriage Allowance from my spouse, and I enclose supplementary pages of SA103S and SA109", and finally put "X" on box 21. Then I need to fill out SA103S by filling in £24,000 as my turnover on Box 9, and I can fill in 10.1 Trade Income Allowance £1,000 (one-off allowance). Right? Then I need to fill in SA109 if I am claiming the remittance basis for that amount (that is £ 24,000) earned from the tax year 2021/22. I saw that on Box 34 in SA109 form "Amount of income you are nominating", does it mean that I should fill in £ 24,000 in my case if I did not completely remit these earnings to UK? What information I need to fill on ANY OTHER INFORMATION box? Please advise. To conclude, I need to fill out SA100, SA103S, and SA109 on my income earnings in my case based on what I described in the first paragraph. Do I interpret correctly? Please confirm, thank you very much in advance!!!
  • RE: Foreign income earnings and under remittance basis

    Hi, Two follow-up questions: (1) Someone says even I get HK dollars earnings from HK, as long as I perform duties in the UK, this is not considered as foreign income, and these earnings are considered as income in the UK. Can you confirm once again, in my case, the earnings from HK (but physically work at home in UK) are classified as "foreign income"? It is very important to clarify it, as this will affect whether or not I can claim for Remittance Basis or not. (2) Regarding to SA106, if I do not need to pay any income tax on HK side (as my taxable income is below my allowance in HK), then I do not need to claim for any tax credit relief in UK, and so I do not need to fill out SA106 form, am I correct?
  • RE: Self Employer

    Hi Admin, I hope you could reply to me again so that I can go through self-assessment tax return. I am too confused about the correct forms I should fill out in my case. If I am self-employed, should I first fill out SA103S form? (if my business earnings in the Tax Year 21/22 is less than GBP 85,000, I just need to fill out short form), and SA100 is not required? And then, these business earnings are actually the consultancy earnings from foreign countries, then I need to fill out the "Foreign" form (but suppose I do not need to claim for double taxation credit or relief as I am not going to remit all these earnings to the UK, UK tax will be exempted), so under this siutation, do I still need to fill out SA106 "Foreign" just because of earning income source from foreign countries? Finally it's about Remittance Basis. I know I must fill out SA109 for claiming Remittance Basis if I meet the criteria, but which boxes I should fill and which boxes I can leave alone?
  • RE: Self Employer

    Hi, I am quite confused which form and how many forms in total I should fill out under my current situation as mentioned previously or briefly point out as below: - self employed - earning income from overseas - want to claim for remittance basis , not remit these earnings to the UK (1) fill out SA100, then (2) fill out SA109 if I want to claim for remittance (3) By claiming remittance basis, those foreign earnings will not be taxable if not remitted to the UK, then I don’t need to apply for tax credit, I just need to pay the tax at HK side (as tax in UK exempted), the double taxation is not going to happen, so I don’t suppose to fill out SA106, right? (4) Regarding to SA103 “self employment”, do I need to fill out too?
  • RE: Self employed foreign earnings

    Hi again, I would give more information, I have lived in the UK for more than 183 days, I suppose I am a UK tax resident but non-domiciled after going through SRT, do you mean that I just need to fill in SA109 "Remittance" form? Is the form available along with the SA100 self-assessment online? Or do I have to use a paper form of SA109 and send a post to HMRC?
  • RE: Self employed foreign earnings

    If I want to apply under Remittance Basis, what proof, or is there any proof I need to give to HMRC?
  • Foreign income earnings and under remittance basis

    Hi I am self-employed for my consultancy services to my client which is a Hong Kong company. I get HK dollars from my HK bank account in return for my services. I earn £ 24,000 from the tax year 2021/22. In this case, are these earnings considered as "foreign income"? Do I need to fill in the form SA106 "foreign" ADDITIONALLY to declare this income, or only fill in SA100 self assessment? And, in this case, am I eligible for applying Remittance Basis if these earnings do not remit from Hong Kong bank account to the UK directly or indirectly? Kindly give me some guides, thanks a lot!
  • RE: Self Employer

    Hi I am self-employed for my consultancy services to my client which is a Hong Kong company. I get HK dollars from my HK bank account in return for my services. I earn £ 24,000 from the tax year 2021/22. In this case, are these earnings considered as "foreign income"? Do I need to fill in the form SA106 "foreign" ADDITIONALLY to declare this income, or only fill in SA100 self assessment? And, in this case, am I eligible for applying Remittance Basis if these earnings do not remit from Hong Kong bank account to the UK directly or indirectly? Kindly give me some guides, thanks a lot!