How to declare foreign income to HMRC

[@darkheart2000]

Thank you for this useful video and helpful follow up advice on the phone. Simple,clear and authoritative thank you! If you have questions around this area don’t try to guess or get second hand info just call these guys.

[@acumenaccounting]

Thank you for the nice comments. It was nice talking to you over the phone. All the very best with your future plans.

[@dremmanuelnwogu]

Just one question, which bothers on morality. If a person has a business outside the UK and pays tax to the country where that business is situated, what moral justification does the HMRC have in terms of collecting tax on that income?

[@acumenaccounting]

This is because the UK tax system tries to tax anyone who is resident in the UK on their worldwide income and gains.

[@kevinwest-b2h]

Hi, I'm trying to complete my Self Assessment and getting stuck with ?Foreign Income. I'm declaring dividends from some US shares. I have put in the total income I have received but getting stuck with the tax part , as I've already been taxed 15% by the US Treasury. When I add in the US tax , the website simply deducts the US tax and then taxes me on the nett figure, so effectively I'm paying tax twice. How should I be filling in my return ?

[@acumenaccounting]

Hello, This is specialised area and we strongly recommend to use an Accountant this will save you paying double tax. Please contact an Accountant locally to you.

[@SantokhBains-j8c]

I am surprised that you did not once mention the Non UK Domiciled status and the option to file on the Remittance Basis, as this will determine if you actually need to declare the foreign income or is your video just addressed to UK nationals or foreign nationals who have been here for over 7 years. As you will appreciate, if a foreign national (Non UK Dom) has been here for less than 7 out of the past 9 years and then their foreign income be it rental, interest or dividends etc remains offshore, they are not required to declare it on the UK return.

[@acumenaccounting]

This is a specialised area and every individual is different for tax purposes. That’s why we always strongly recommend to us a professional for expert opinion. In short video we can only cover limited area of foreign income. Off course different rules apply to individuals when it comes to foreign income declaration.

[@lislourenco8630]

Hi! I have just read your comment and you gave me some hope. I have income from a property rented abroad but I pay tax there and I do not transfer this money to the UK. I believe that I do not have to pay tax in the UK but I do not know what to do. Do you know if I have to fill any form? Thank you.

[@acumenaccounting]

Please visit our website and book a free consultation one of our Accountants will give you all the information you required.

[@donek321]

I got dividend income from US company . The full amount is in the second tax band . For the first tax band I paid 15% to US Authorities so I do not have to pay extra tax in UK .For the second tax band I also paid 15% withholding tax in US but in UK we have 33.75% , so do I have to pay the difference to HMRC. Or can I use full amount of withholding tax in US to see if I own some tax to HMRC.

[@acumenaccounting]

In the UK, you may use the foreign tax credit relief for any withholding tax paid on foreign income, but it typically applies only to offset tax due on that same portion of income, not across bands. Since you received US dividend income that is taxed at different UK rates, here’s how it works: 1. For the first tax band: As you noted, the 15% withholding tax you paid to the US meets the UK requirement, so no additional UK tax is due on that portion. 2. For the second tax band: In the UK, dividend income in this band is taxed at 33.75%. Since you've already paid 15% to the US, you’ll generally need to pay the difference (33.75% - 15% = 18.75%) to HMRC for that portion of income. In other words, the foreign tax credit relief allows you to claim credit for US tax paid, but only up to the UK tax due on each portion of income. You would therefore need to pay the additional 18.75% to cover the UK’s higher tax rate on the income in the second band. Hope this answers your question.

[@philiplively3680]

I sold my house in France. Can you list the sections in the tax return I use to declare it. I can't seem to find capital gains in the Foreign Section, only a "Capital Gains - witholding tax"

[@acumenaccounting]

Use the 'foreign' section of the tax return to record your overseas income or gains. Include income that's already been taxed abroad to get Foreign Tax Credit Relief, if you're eligible. HM Revenue and Customs ( HMRC ) has guidance on how to report your foreign income or gains in your tax return in 'Foreign notes'. This is specialised area and I recommend speak to a professional so you don’t submit incorrect information in your self assessment.

[@stimulusdevelopmenttrainin7522]

I had a book published by a US publishing company. I therefore earn royalties in the US although I live in the UK. Before completing a W8BEN form I was charged a 'withholding' tax on my royalties. Can I claim tax relief on the withheld amount in my UK tax return? If so do I do this by completing the 'Foreign' Pages of my tax return?

[@acumenaccounting]

Hi, you need to complete foreign income section in self assessment. You can also claim any tax paid on foreign income.

[@anandseepersad1926]

We are retirees living in the caribbean who bought a property in UK last month in the names of my partner, my son and myself. The property was rented even before we bought so we kept the tenant for another year. The rent collected is 550 pound sterling and we are paying a company to handle the rental income etc.Today we got a document from the company stating that tax is being deducted at 20% from us each... so they took out 60% as taxes out of 550....this is crazy as we are left with just over 100. Is something wrong here? I thought this deduction would be prorated to 6.6% for each of the three of us...please help me understand what is happ ening!

[@acumenaccounting]

Thank you for contacting us. Can you please email us the same and one of our Accountant will reply you. Please email at [e-mail]

[@neenashah3272]

I cannot understand clause in self assessment of foreign income. If i was unable to transfer all or partial foreign income to u.k. Write yes or no I have fixed deposit in indian bank. I get interest which i use when visit home country. I do not want to bring money to u.k. so what should i enter yes, no

[@acumenaccounting]

You need to declare interest income received on fix deposits. This need to be declared under foreign income section. Either way you bring money to uk or not it’s taxable income. If you still have any question please visit our website and book a free consultation with on of our qualified Accountant.

[@desiguy995]

I have a 20 year LIC jeevan anand policy in india which is maturing this year and I will get 25 laks. Can i transer it to UK , and Will it be taxed in UK ?

[@bhaijaan6558]

I have received a letter from HMRC regarding our saving in India.We have numerous FD in bank of baroda since 2016 up till present day which we haven’t declared! simply because we weren’t aware .Our account has be frozen since covid and the bank are reluctant to replying to emails regarding this matter.

[@acumenaccounting]

You need to submit self assessment tax return and complete foreign income section.

[@bhaijaan6558]

@@acumenaccounting Thanks 🙏 how do I do that all bank information is in India ! They have frozen account for almost 2 years now .We are travelling to India on 14 March

[@acumenaccounting]

The letter you received from HMRC should have all the information. Regarding how to do the return I strongly advice use an Accountant. If you want to discuss this please visit our website a book a free appointment.

[@bhaijaan6558]

@@acumenaccounting thanks will book appointment with you .

[@Sowmya.36936]

@@bhaijaan6558Hi can I contact you please

[@CreativeMediaStudioLtd]

In my opinion, this video does not explain anything, it just encourages you to use accounting services.

[@acumenaccounting]

Thank you for your feedback. In this video we trying to explain please declare your foreign income correctly. This is specialised area of self assessment and need professional assistance.

[@TheMetyx]

How to pay from abroad from Lithuania (by the way I left UK in 2019 and I have 2000 fines) ??? Basically, I got fines for the years that I wasnt working in UK, because I was out for a year 2017, and then I left UK in 2019 but forgot to report to HMRC (I was self-employed) taht I am leaving.

[@acumenaccounting]

You just need to write to HMRC and explain everything hopefully they will cancel all the fines and close your self assessment.

[@Qurat-ul-AinAzhar]

I have two question: I am working as a lecturer at a university, and my salary is already taxed. However, I also do freelancing and earn around 7 to 8 thousand pounds. Do I need to declare this freelance income? My second question is: I am on a Global Talent Visa with no work restrictions. Will this freelance work affect my working hours?

[@acumenaccounting]

You need to declare your freelancer income to HMRC in your self assessment tax return. Please register yourself with HMRC as self employed. If you freelancing after your work time this shouldn’t be a problem as far no restriction from your employer.

[@promessekayumba2014]

if I have foreign income from my self employment do I declare it in the Short self assessment form and Foreign income part or ONLY in the Foreign income section ?

[@acumenaccounting]

Hello, please declare this under the foreign income section. Please note it’s a specialised area of the tax return and we recommend you seek professional advice.

[@bernardwong913]

The definite of "Income" are money that has been brought back into the UK Bank Account right? All the investment dividends and interests generated abroad and kept in the bank accounts abroad, and money savings abroad that are not transferred back to UK are not "Income" for UK taxation right?

[@acumenaccounting]

It all depends on the tax residency. This is a specialised area. If you filling your tax return in the UK you must declare all foreign income in the self assessment.

[@mohj6042]

If you have a savings account in your home country, with money you earned before moving to the UK, after moving to the UK do you have to pay taxes for interest earned in that account? Even if it's already being taxed in your home country? And do you have to declare such accounts after moving to the UK?⁹

[@acumenaccounting]

Once you become UK resident and your tax residency is UK. You must declare your foreign income in your self assessment tax return. Regarding taxable or not this depends on the treaty signed between countries for tax deduction. This is a specialised area and we recommend to speak to a professional so they can check everything and advise you accordingly. We also offer free appointment please visit our website and book your free appointment.

[@mohj6042]

@@acumenaccounting thank you, as a follow up question, do international students who use there personal accounts from their home country to make purchases or to transfer money have to declare this in a tax return after living in the Uk for more than 183 days? And if their parents deposit money into these accounts for their use do they need to pay taxes for them too?

[@Leszno90]

Hi, I have received a gift from my grandmother which is over 100k£. She sold her house in Poland and she transferred the money to my Polish bank account. I want to transfer this money to my UK bank account. Do I have to declare it? or can I just transfer the money and use it straight away? p.s I have declared to Polish HMRC the gift which is tax free Thanks in advance

[@acumenaccounting]

Good morning, If funds transferred from abroad are a gift, then there won’t be any tax implications as HMRC does not view gift transfers as a form of income. Please make sure you have all the paperwork because bank will ask you prof of funds…..etc

[@shiniedass5147]

Hi In my case, how to declare tax for offshore employee? Are they tax residency or non-tax residency?

[@acumenaccounting]

The employee will typically continue to be taxable in the UK on their employment income, but usually there will be a foreign tax credit for any tax paid in the overseas country.

[@ruinunes8251]

Quick question here, if a certain country only taxes you on 50% of the capital gains, do you still need to declare to the Tax man here in UK the remaining 50% even if there a tax treaty between UK and the other country?

[@acumenaccounting]

You need to declare all income sources in self assessment tax return. Foreign income section need to be complete in this case.

[@ivermektin6874]

I just received a nudge letter from HMRC staying I had 67k TOTAL PROCEEDS on a DEGIRO trading account I used a couple years ago, my DEGIRO documents on my account show something very different. Does HMRC think I made 67k? I just can't understand where they are getting this number from. I only had a few thousand in that account and made little profit

[@acumenaccounting]

You just need to get in touch with HMRC and ask for details. Also provide your account information that you only had few thousands in the account.

[@ivermektin6874]

@@acumenaccounting I noticed in my DEGIRO account for that year I had £45k in "Disposals: Total Disposals Proceeds". Could that be what they refer to? The realised profit/losses are a different section and all under £1000. Will HMRC be able to give more info that isn't in their letter? I'm not sure what Degiro is referring to but I was trading some derivatives but very little profit overall.

[@acumenaccounting]

HMRC has super compute which gather information and send nudge letters. Once you contact them they will share more information. Of your profit was under £1,000 you don’t need to be worried.

[@analuciasilva4364]

Hi you say that if we pay our taxes in our country we do not have to pay in UK but HMRC made me Pay anyway even after I complained over and over again

[@acumenaccounting]

Thank you for your message. Did you file your tax return correctly? We strongly recommend use professional to submit your tax return.

[@MrSaihari]

Hi, My wife is currently working for an Indian company and will be joining me soon in UK soon. Please advise what steps to follow so that she can continue to work after moving to UK.

[@acumenaccounting]

This is specialised area when there tax residency changed. Please book free appointment just visit our website and our qualified accountant will explain you all.

[@JoebenProduction]

What if I have bank aboard in India? With fixed deposits?

[@acumenaccounting]

If you receive income abroad and your tax residency is UK you have declare all gains in foreign income section under your self assessment tax return.

[@juanestrada2814]

234 / 5,000 Hello. I am Spanish and I have lived and worked in the UK for 8 years. I have a house in Spain and with the rent I receive from it, I pay the mortgage on this house. I receive around 600 pounds monthly. Do I need to do the self assessment?

[@acumenaccounting]

Hello, yes you need to do the self assessment and declare your rental income from Spanish property.

[@prozacandcaffeine]

Ireland is not in the UK, but Wales is ;)

[@acumenaccounting]

The United Kingdom (UK) is made up of England, Scotland, Wales and Northern Ireland.

[@nutangupta2305]

If someone has some income from few fixed deposits in India, and does not fill self assessment form, as working in public. Sector, how to declare the saving income from abroad ?

[@acumenaccounting]

Please book a free appointment and one of our Accountant will explain you all.

[@girijeshmehta6816]

Please contact