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Confused if I am actually earning foreign income..

Online sales which go through an Irish bank account but are sent from the UK...

I have a question relating to some foreign money I earned last year (In fact I am not even sure if it was foreign income!). I am a UK resident but Irish born and non domiciled. I bought and sold some CDs and DVDs on eBay but the funds for the sales were made to a Irish Paypal account and then transferred to an Irish bank account. Why did I do this? Because I have always had that PayPal account and most of the sales were in euros - PayPal charges very high exchange rates so I just left the funds in euros and spent them when on holiday in the eurozone.

The main question though is... Is this actually foreign income if I was selling and  dispatching the items from the UK? I read on a website somewhere that the money is earned where the duties take place? The bank accounts were in Ireland and most of the buyers were in Europe. I am asking because I need to establish where this should go on my self assessment. Where should it go?

Also I read the following information on the government's website for non domiciled... 

"You don’t pay UK tax on your foreign income or gains if both:"

"they’re less than £2,000 in the tax year
you don’t bring them into the UK, for example you transfer them to a UK bank account"

If the money is indeed foreign income do I need to enter it anywhere on my self assessment as it is in indeed under 2k. If it is UK income where should it go? I just want to get this right... Thanks


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12th Dec 2017 21:19

Where were the CDs, were they stored in the UK, where did packing and sending them out occur?

Seems to me the activity possibly took place in the UK if you were living in the UK, so UK self employment pages seem relevant re reporting the profits; then again foreign matters re tax are something I tend to avoid.

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By evpod
13th Dec 2017 00:33

Yup stored and sent from UK..

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13th Dec 2017 09:36

As your sole trader business appears to operate in the UK it surely needs to return its income to HMRC in the UK; where the money routes appears irrelevant, the business place of operation and your residence status both appear to be the UK.

I note that your previous posts seem to mention a Limited Company, if you are trading through a company in which country is it registered would be the obvious starting point re residence. However as effective control is likely from to be from the UK, I suspect, irrespective of country of registration, it is possibly UK resident for tax.

If appropriate if you are not already registered as self employed in the UK you possibly want to put that in hand; appointing an accountant might not be a bad idea, especially if you did not advise HMRC at the appropriate juncture that you were trading.

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