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foreign self employed income from Slovakia

where and what would go on the self assessment return with self employed income from Slovakia

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Hi

I have a client who lives in England and completes a self assesment as self employed she is also a translater and completes a Slovakian tax return. Her accountant in Slovakia has sent me a copy of her return , I can see taxable income 4176.33E and tax of 65.79E it also mentions payments to Slovakian NHS and pension, I am assuming this is like our NIC?? What is the code for Slovakia ?

any advice is appreciated

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By David Heaton
25th Sep 2019 11:54

If she's UK resident, as the law currently stands, she should be paying UK NIC only, and no social security contributions in Slovakia. Until (if) we leave the EU, the EU social security coordination rules say a person who is self-employed in two member states simultaneously is subject only to the law of the state in which she lives.

The UK-Slovakia double tax treaty says she should only be paying tax on her profits in Slovakia if she has a permanent establishment there as a sole trader. You can read it via the HMRC website. Read in particular Article 4 on the definition of 'resident of a contracting state' and Article 7 on business profits. If she's taxable in both states (because she has a PE there but is resident here), claim double tax relief (a credit) in the UK SA return under Article 22.

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Replying to David Heaton:
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By Matrix
25th Sep 2019 13:09

I disagree, I see nothing in the OP to suggest that Slovakia has first taxing rights and don’t know why tax has been paid there. This is a UK self employment.

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By sarahtaylor2018
25th Sep 2019 13:40

I may have confused you with the question, uk resident with uk self employment . she is slovakian born and completes a tax return there for translating work completed, do I also include the translating work on her uk tax return

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Replying to sarahtaylor2018:
Caroline
By accountantccole
25th Sep 2019 13:57

If UK resident you need to report worldwide income.
(Unless remittance rules can apply?)
Is she travelling to Slovakia to do the translating? - has she got the UK/Slovakia split right?

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