bwearryyu

Background: a Hong Kong citizen who came to the UK for a full time job in tax year 23/24 but unfortunately got laid off in the same tax year and now back to Hong Kong. Trying to file Self Assessment but then realized there is DTA between HK and the UK (https://www.gov.uk/government/publications/hong-kong-tax-treaties). Since I am a tax resident in both jurisdictions, based on DTA's Article 4.2.(a), I will be considered as resident in Hong Kong (where my permanent home is) This thread also states DTA overrides SRT (https://community.hmrc.gov.uk/customerforums/sa/7ad2c8f2-4abd-ee11-a81c-002248c76c63) My understanding on taxes on different sources are as follows: 1. Tax on income from UK employment: No doubt it would be UK (based on Article 14.1) - handled by PAYE 2. Income from Immovable Property (Article 6) https://community.hmrc.gov.uk/customerforums/ifp/fc694502-eaf8-ed11-a81c-6045bd0e3464?fbclid=IwAR3jk-2eYR_90_2HM25CCr9MPYcgbPIVp9-ZNbpMVgIqH5L8VTj-DPcCeR0 https://community.hmrc.gov.uk/customerforums/ifp/082da087-f1b0-ee11-a81c-002248c61b95 The rental income is only taxable in/by Hong Kong 3. Interest (Article 11) Wording is similar to Article 6 so I presume it is also only taxable in Hong Kong. 4. Capital Gains (from trading stocks) I believe Article 13.5 refers to this. Or maybe Article 20.1. Both state that such income/gains only taxable by the resident's Contracting Party (in my case that is Hong Kong) I hope my understanding is correct. And if so, - does that mean even if I am taxed on the arising basis (I have an option to use remittance basis since none is remitted into the UK), my overseas (Hong Kong) income will not be subject to UK tax? And If this is correct, - do I still need to file Self Assessment and report the amounts? Some threads (or similar threads) above suggest declaration is not necessary.

Background: Full time job in Tax year 2023/34 until end of Mar. Left UK in first half of Apr 2024. First tax filing UK tax. I thought I could select remittance basis in my Personal Tax Account but then I saw the following instruction on the first page. non-resident or non-domiciled in the UK Help about: Welcome Page 03 - Non-resident or non-domiciled in the UK If you consider yourself, for all or part of the year, to be a non-UK resident or non-domiciled in the UK and claiming the remittance basis, or dual resident in the UK and another country, you need to exit this online service and fill in the 'Residence, remittance basis etc' pages using alternative software. You can find a list of alternative software providers at Self Assessment commercial software suppliers. Does that mean I must pay to one of the software providers in order to do Self Assessment?

I came to take on a job in Aug 2023 and left UK in Apr 2024. So 2023-24 is my first tax year (and possibly last). I understand I have to open an account for Self Assessment (remittance basis as well as additional tax relief due to pension contribution). I did it three times. For the first time, I swiftly received a rejection email due to address mismatch (because I used my foreign address when applying when on HMRC record it was still my previous UK address). I amended the address on HMRC and re-apply in late April. There was not any news and I re-applied again in late May. It is June now but I am still receiving nothing and am not sure how I could file my self assessment. Could you shed some light on this please? Many thanks

Thank you. But the page doesn’t really show any example to illustrate the mechanism of tax relief calculation. Anyway, my question is: if I contribute 48000 and get auto relief at 20% I.e. 12000 to max out the annual allowance of 60000, then when I claim the additional tax rate relief, could I get it in cash?

Hi peekay, I suspect the part 7500 * 1.25 is wrong As per HMRC admin’s reply above It should be 7500 * 1.2 So you get 1500 additional tax relief Then if you put such tax savings into pension You get 375 basic relief so 1875 added to the pot. And then you can claim 1875 * 0.2 = 375 additional tax relief So let’s do it again and again and we sum the pension addition (your input and 20% basic) each time 7500 + 1875 + … = 7500 / (1-0.25) = 10000 Which is the desired result. I understand you have it as first hand experience for 22/23 but given you did some rounding to fit the initial example so I wonder if there is any “loss in translation”

Dear HMRC Community, This is my understanding, and I would like make sure it is correct before making one-off contribution to my pension My pension is relief-at-source (20%) Income is 120,000 so the personal allowance is 12570 - (120000 - 100000) / 2 = 2570 So my tax rates are: first 2570: 0% next 37700 (i.e. 50270 - 12570): 20% the rest 79730: 40% making total tax = 39,432 Personal allowance is 60,000 per tax year, and I would like to top up enough so as to hit this cap (for simplicity, I ignore the employer contribution, which I understand will consume the 60,000 allowance) So I pay from my own pocket (and some via PAYE in reality) 48,000 I automatically get 12,000 into my pension as tax relief (20%) So now it is the tricky part I would like to seek clarification because the gross contribution is 60,000 and so my tax-free bucket is increased by the amount and hence it becomes first 62570: 0% next 37700 (i.e. 50270 - 12570): 20% the rest 19730: 40% making total tax = 15,432 Tax relief in total = 39432 - 15432 = 24,000 (which is 40% of 60,000 gross contribution) With 12,000 given into the pension pot, the remaining 12,000 can be claimed by writing to HMRC (the additional 20% as people usually mention). All seem to tied up. Question 1: Is my understanding and the calculation above correct? Question 2: Can I get the remaining 12,000 as cash back to my account (because I deposit into my pension pot *in advance* before HMRC processing the additional tax relief)? Question 2.1: I understand HMRC may put this 12,000 in a way to reduce the tax burden in the following tax year but I just think it is extremely confusing to mix it with another year (plus I may lose my job and no income and hence I won't pay tax anyway). If this is the default option, how could I opt for other options? Question 2.2: Or perhaps, the remaining 12,000 will be given into my pension? But then I max out the 60,000 allowance for current year. I heard from some of the staff at my pension CS department that HMRC could adjust the *next year* allowance to 60,000 + 12,000 = 72,000 so I will not be "above annual allowance" for current tax year. Is it correct? Many thanks!