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.
The tax year is from 06 Apr 2021 - 05 Apr 2022. I first entered to UK on 7 June 2021 and stay for more than 183 days here in the UK and so I become a UK tax resident. From 07 June 2021 until 05 Apr, 2022, I worked as self employed /sole trader at my home in UK to offer consultancy services for a Hong Kong company to get HK dollars as my income earnings. I have TWO questions:
(1) The income earnings from 06 Apr to 06 June, 2021 (I am still in HK and earning income from employment), do I need to declare this period's earnings under Spilt Year Treatment? If yes, where I can find to delcare this period's earnings?
(2) From 07 June 2021 to 05 Apr 2022 , I need to declare the earnings as self employed, but if I did not remit these earnings to the UK in the tax year, can I apply for Remittance Basis so that this part of earnings will not be taxable?