Non Resident and Self Employed

Non Resident and Self Employed

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Client is non resident and is self employed and works entirely abroad in the Middle East and Africa. Client has UK income on which he pays UK tax. If I include income from self employment on self employed pages a tax liability on this income arises even though none is due. I've tried phoning our software provider who advises to leave income off Return completely or contact HMRC for advice. My thoughts are to omit income but make full declaration in the any other information section.  Does anyone have any suggestions as to how to get round this problem?

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By Portia Nina Levin
22nd Jan 2015 13:12

How to get around the problem?

It is only a problem because you do not know the right answer. Which means that you have taken on a client that you are not competent (by not knowing, and not having the where with all to find for yourself, the right answer) to act for.

Phoning HMRC is next to useless. Phoning your software provider risks exacerbating the situation.

As it happens, you have stumbled haplessly into the right answer.

ITTOIA 2005, section 6 means that a non-resident is only taxable on trading income to the extent that the trade is carried on in the UK. That means that the income in the situation is not taxable (and not, therefore, reportable, but a white space disclosure should be made to avoid any issues from HMRC).

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