I came to the UK on 17 Sep 2022 with my BNO 5+1 visa from Hong Kong. A Hong Kong employer (they only have a registered office in Hong Kong) has been hiring me to work from my UK home since 15 Nov 2022. They treat me as a Hong Kong staff seconding oversea (the UK). They pay me my salary monthly to my Hong Kong bank account. With the monthly salary, they will contribute to my MPF (Mandatory Provident Fund, a Hong Kong government mandatory pension scheme) monthly, and I also need to contribute 5% of my monthly salary to this fund too.
According to Hong Kong laws, I have to pay Hong Kong salary tax for my income derived from Hong Kong in that fiscal year (i.e. 2022/23). Therefore, I have to submit my salary tax return on or before Jun 2023 and may be required to pay my HK salary tax on Jan 2024. On the other hand, I am required to submit my self-assessment to the UK HMRC on or before Jan 2024 (online). I realise that there is a double taxation agreement between the UK and HK, and the UK government will levy income tax for their tax residents globally.
I have the following questions. Would you please help to answer them?
1. If I earned ~£12,000 salary from the Hong Kong employer until 31-Mar-2023 (end date of Hong Kong 2022/23 fiscal year) and paid salary tax for this earning to the Hong Kong Government in Jan 2024, do I still need to pay income tax (a partial or full amount) to the UK HMRC?
2. To work for my Hong Kong employer remotely, I may have some expenses (e.g. rent a bigger apartment with one more room, use more electricity, travelling expenses, postage or courier expenses, buy a new laptop, buy stationaries, etc.). The Hong Kong employer will reimburse some expenses; they will make another non-salary transaction to my Hong Kong bank account monthly. For some expenses, they will not reimburse me. Will I be levied income tax for those reimbursements? For the expenses without reimbursement, can I apply for tax relief on my self-assessment?
3. Before coming to the UK, I remitted most of my savings to the UK (Isles of Man) bank account. However, I still have some savings in two Hong Kong bank accounts. I use one of the accounts to be my Hong Kong salary payment account now. If I remit my previous savings (i.e. savings before 17 Sep 2022) from those Hong Kong bank accounts to my UK bank account now, will I be levied income tax in the 2022/23 fiscal year?
4. I still have family members (siblings) in Hong Kong. If they want to support my living oversea and give me some money to my Hong Kong or UK bank accounts, will I be levied income tax?
If the answer to question 1 is ‘yes’ (i.e. I still need to pay a partial (or full) amount of income tax in the UK for my Hong Kong earnings):
5. How will the UK income tax for my salary earnings from Hong Kong be computed?
6. Hong Kong Government will launch a nationwide tax reduction scheme sometime (e.g. HKD$10,000 tax reduction in 2021/22 for all Hong Kong residents). Which amount of Hong Kong salary tax paid (amount before reduction or after reduction) should I declare on my UK self-assessment?
7. There are some legitimate expenditures I can declare on the Hong Kong salary tax return form for salary tax reduction (e.g. contributions of MPF, expenses for voluntary health insurance scheme, expenses of self-education, recognised charity donations, etc.). Can I submit those to the UK self-assessment for tax relief too?
Those are all my questions; I am looking forward to having your answers.
Thank you so much.