HMRC Admin 19 Response

Hi,

Your freelance job is self employment and as such, requires the completion of a Self Assessment tax return.  

As you are resident in the UK, you are taxable on the profits from your freelance work in the UK, and also need to pay National Insurance. You will need to register as self employed for Self Assessment below so that class 2 and class 4 National Insurance can be calculated on your net profits.

Set up as self-employed (a 'sole trader'): step by step

Thank you.

Hi,

We can only provide general information and guidance in this forum. For an answer to your query you will need to contact our Self Assesment team.

Self Assessment: general enquiries

Thank you.

Hi nortonlp,

You will need to complete the residence section of the tax return or SA109 if submitting a paper tax return to declare your split year treatment. In the additional information section (SA101) page Ai2 box 12, enter the amount of income that is not taxable in the UK. This will give a credit in the calucation, reducing the amount of taxable employment income.  

On the online tax return, when tailoring your return, click yes to "Other tax reliefs" on page 3 of 3, tailoring your return. This will bring up the "Other tax relief and deductions" section, so you can enter the amount in "Foreign earnings not taxable in the UK".

Thank you.

Hi,

Foreign dividends should be shown on page F2, in the section for income from overses sources under dividends, including any foreign tax deducted and in the equivalent section of the online return.  

Tax is calculated in a fixed sequence, with dividends being taxed after other incomes in the calculation. The calculation should show basic rate band at nil rate, £2,000 x 0% = £0.00 with the dividends then being allocated against the relevant rate of dividend tax.  

You will need to contact the Self Assessment team for a more detailed reply.

Self Assessment: general enquiries

Thank you.

Hi,

Italy has the first option of taxing Italian property income, but the UK also has the right to tax your worldwide income, so it should be declared on a tax return.

As you are in receipt of foreign employment income and foreign property income, you will need to register for Self Assessment and declare the income in a tax return. If you were in Italy at the time you were employed, the employment income is taxable there. If you were in the UK working remotely, then the income is taxable in the UK and not Italy. For the latter, you will need to request a certificate of residence in relation to the employment income.  

How to apply for a certificate of residence to claim tax relief abroad

You should claim a refund of any tax paid in Italy on the employment income, as it is not taxable there.  

The overseas property income and employment income should both be declared in the tax return. You can claim a foreign tax credit to avoid double taxation.

Thank you.

Hi,

You can use any of the rates specified within the tax year 6 April 2022 to 5 April 2023 for both payments received and tax deducted.

Thank you.

Hi Rupa Nambiar,

Yes, howevwer there are no Income Tax implications from receiving a cash gift. If the gift generates income such as interest, then this is taxable and should be declared.

Thank you.
 

Hi,

Under Article 17 of the double taxation treaty, the government pension from Hong Kong is only taxable in Hong Kong and does no need to be declared here and so no tax return is required.

2010 Hong Kong-UK DTA

Thank you.

Hi,

1. That is correct.    
2. That is correct too.  
3. If it is a MPF fund then this is not taxable income in the UK.

Thank you.

Hi,

They are still classed as taxable income but if you look further down the calculation the tax charged will be nil.

Thank you.