In recent times, earning income abroad has become very common in recent times.

This is not just due to the recent pandemic but also the new business models that are used by most business.

Its has become very popular and common to work and earn money from any part of the world.

When does an individual earn income for tax purpose in the UK?

An income is earned for tax purpose when the following has occurred:

• When an individual receives any payment you receive as a result of employment.
• When they receive profits from a trade, profession or vocation that they carry on
• If they are a partner that has received profit from the trade.
• When a taxpayer receives any payment you receive from a pension
• Income is also earned when income and gains from employment-related share schemes are received during a tax year.

Tax implication of earning income abroad.

Some of this income are earned from abroad are taxed at source whilst some are not.

However, they could also be taxable income in the UK depending on the residency, domicile and where the duties were carried out by the individual earning the income.

It doesn’t matter if the income has been taxed in the country earned, if the individual is a UK resident, it will also be taxed in the UK if the individual is a tax resident in the UK.

How to declare and pay tax on income and gains earned overseas.

If you have earned income abroad and you meet all the conditions stated above, you will have to declare your foreign income through your self-assessment returns.

You will declare the income earned and also the tax paid and therefore claim tax relief on tax paid already.

When this income is not declared, they could cause several unpaid tax or penalties from the HMRC.

Conclusion on earning income abroad

Thanks for reading my blogpost, If you have earnings from overseas and you would like more me to support or give more advice, you can contact me