Foreign income and tax

Everything you need to know about dealing with foreign income on your tax return

It can be complicated enough trying to work out what you owe on income earned in the UK, but if you add foreign income into the mix it can be a recipe for a taxation nightmare. Thankfully our experts at DSR Tax Claims are at hand to help you work out what you should be paying and what you don’t need to pay. You can also check out our handy online calculator to see if you could be owed a tax rebate, and if you are, give our friendly team a call on 0330 122 9972 and let us get you your maximum rebate fast.

Do you have to pay tax on your foreign income?

Unsurprisingly, that isn’t always an easy question to answer but in most cases, if you are a UK resident who has money coming in from overseas, you are likely to have to pay tax on that income. You will need to fill in a self-assessment tax return to account for this income to HMRC. So, if you have any foreign income above £300 per tax year, you need to declare that on your tax return.

This income could come from a number of sources, such as money earned from working abroad, or foreign investments. In the majority of cases, this income will be treated in the same way as income earned in the UK. However, HMRC make some exceptions to the way some foreign income is treated.These are:

  • Pensions
  • Rent from foreign property
  • Certain types of employment income, for example, if you work on a ship or offshore installation, or as a volunteer development worker.

It can be helpful to get expert advice in these circumstances. Our team of experts at DSR Tax Claims are on hand to let you know exactly where you stand so call us on 0330 122 9972.

How your residence status affects your tax?

Usually, HMRC’s foreign tax rules only apply if you are deemed to be a UK resident, which means that you:

  • Spent 183 or more days in the UK during that particular tax year; or,
  • You owned or rented your sole home for 90 or more days in the UK and spent as least 30 days there in that particular tax year.

What about non-domiciled residents?

If you are classed by HMRC to have non-domiciled status(that means that you are classed as a UK resident even though your permanent home is abroad) then you might not have to pay UK income tax, if your foreign income is less than £2,000 and it is not brought into the UK,  such as being transferred into a UK bank account.

How can DSR Tax Claims help?

We know just how complicated it can all get when you are dealing with foreign income and that is why our team of tax preparation specialists are here to help you. Not only can they make sure that you are paying the right amount of tax on your UK and foreign income so that you don’t fall foul of HMRC, they can also ensure that you are taking full advantage of any tax relief that may be applicable to you. Call our friendly and professional team of experts on 0330 122 9972 – we’re the tax experts you can trust.

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