Does overseas salary need to be declared?

Does UK tax resident living abroad need to declare overseas salary?

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Hello,

My client ceased self-employment in September 2016 and started a "PAYE" job in Eastern Europe in November 2016 and left the UK to live there indefinitely. There is a double taxation treaty in place.

He still owns a home and a rental property in the UK and as he was living in the UK from April to November 2016, I believe he is still a UK tax resident for 2016/17. 

I think he will need to declare his overseas salary and claim foreign tax relief on his 2016/17 UK tax return. Is that correct?

Cheers

BD

 

 

 

Replies (2)

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By Tim Vane
15th Jan 2017 12:28

He will likely be able to claim split year treatment, so you'd need to confirm the details of the DTA but it is possible the foreign earned income would not be taxable in the UK. On his 2017 return he would therefore claim split year treatment and just declare his cessation trading income and his rental income. Consider joining the NRL scheme if he hasn't already.

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Replying to Tim Vane:
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By Brendonohoe
15th Jan 2017 13:28

Great, thanks for your guidance. The NRL scheme is in hand too.

Cheers

BD

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