You may not be aware of how self-assessment tax works if you are accustomed to paying your taxes automatically. In general, you must self-declare any income that is not automatically reported and taxed.
It’s difficult to know what to declare and what to keep private, but you must be aware of the rules. If you don’t disclose it, be sure to fix it as quickly as possible.
When to include your foreign income
A foreign income isn’t automatically taxed by the HMRC, so you’ll likely have to report it on your self-assessment tax return form. However, there are exceptions to the need to disclose foreign income. For example, the amount of your dividends is £2000 or more, then only you may have to declare them as foreign income. But that’s all dividends, not just foreign dividends. That implies you must declare any dividends above £2000 from both UK and foreign companies.
If you rent out properties in other countries, this does constitute foreign income, and you should ensure that you declare it on your self-assessment tax return. Property rental income tax is the same as it is in the UK.
How to file your self-assessment
Filing for a self-assessment tax return is uncomplicated, and you can obtain access to all of the information online. That’s why services like tax accountant UK exist: to help you file your taxes correctly.
When it comes to submit your tax return, you may do it either online from the gov.uk website, or you can mail in a paper form. Whichever is easier for you, so long as you can correctly submit it with precise facts via either channel. If it’s your first time submitting an online return, then you’ll need some time for your details to completely register before you can submit your self-assessment.
While you fill out your self-assessment, you should add your foreign income on SA106 and SA109 for Trusts if need to declare residence status, unless of course, you’re exempted due to the factors that were given earlier.
It’s easy and done after you’ve finished your filled your self-assessment and delivered it either electronically or on paper.