Thinking again, and using the online tools, I think the payment was made in such a way, that I may count as self-employed in the UK. If so then I think I need to pay class 2 contributions (£3.45/week) but not class 4 contributions because I am not making more than £12570 in the tax year from self employed income - even though I also have income from other employment (which is total is more than £12570). Does this sound right?
I had paid employment in the UK until the end of June 2023. I then was paid a lump sum fellowship amount from an overseas academic institution to an overseas bank account, from which tax has not been taken abroad, but which I have not remitted to the UK. I stayed in the UK until mid-October. I qualify for split year treatment from the time I left in mid-October, so my income from now on is irrelevant. I was a UK tax resident prior to mid-October, but not domiciled in the UK. I am deciding whether to choose the remittance basis or not for the 2023-2024 UK tax year.
I understand that if I choose the remittance basis I will lose my personal allowances (ITA07/s35) and AEA (TCGA92/s3(1A)). What I am not sure of is whether it only applies to Income Tax proper, or also to the cutoffs below which I pay or do not pay National Insurance.
For example, let's say my foreign source income is equal to the Personal Allowance (£12,570). If the loss of personal allowances also impacts National Insurance contributions such that I would pay NI from £0/month instead of from £1,048 on my UK source income, then there would be nothing either gained or lost from choosing the remittance basis. If, however, the loss of personal allowances only applies to Income Tax, then claiming the remittance basis would save me 12% (£1508.40) on the £12,570.
So does the remittance basis have any impact on National Insurance contribution thresholds on my UK source income?
I'm afraid that still doesn't help. Could you please confirm that, if I DO NOT remit the income to the UK, am non-domiciled, and earn less than £2000 from foreign interest/dividends, I do not need to complete a self assessment?
Dear Admins, Thank-you for the prompt reply, but unfortunately, it does not answer my question, which is: Do I need to file a self-assessment return? I am non-UK-domiciled, and my only income was foreign investment/interest income below £2000, none of which has been remitted to the UK. Does the requirement to file a return if foreign investment income exceeds £300 only apply to UK-domiciled taxpayers? Thanks again,
Am I right in thinking that the apparent contradictions are due to some sources assuming the person is being taxed on UK employment income? That is, if I were earning a UK income, I would only need to submit a Self Assessment return if my foreign investment income were >£2000. However, if foreign investments are my only income source, the £300 threshold applies and I need to file a return, even though I'll have no UK tax liability?
Hello HMRC Admins.
I too am confused about seemingly conflicting info on different parts of the HMRC website.
- On the Register for Self Assessment page (https://www.gov.uk/government/publications/self-assessment-register-for-self-assessment-and-get-a-tax-return-sa1), it does state clearly that any foreign income over £300 requires that a self assessment be completed. This agrees with the admins' replies.
- Under "Tax if you’re non-domiciled" (https://www.gov.uk/tax-foreign-income/non-domiciled-residents), it says,"You must report foreign income or gains of £2,000 or more, or any money that you bring to the UK, in a Self Assessment tax return," and "You do not pay UK tax on your foreign income or gains if ... less than £2,000 in the tax year (and) you do not bring them into the UK... If this applies to you, you do not need to do anything." This indicates that *any* foreign income below £2000 does not require Self Assessment, if it's the only source of income.
- The "Check if you need to send a Self Assessment tax return" form (https://www.gov.uk/check-if-you-need-tax-return) asks "Do you need to pay tax on ... Income from outside the UK?" Because my foreign income is from investments/savings and