HMRC have published this toolkit covering “2021 to 2022 Reporting Foreign Income in Tax Returns”.
The toolkit identifies the following broad areas of risk relating to the reporting of foreign income:
- Unaware of the need to report
- Incorrect understanding of what to report
- Unaware of income
- Failure to report
The toolkit then has a checklist for reporting foreign income, with the following headings:
- Residence status
- Domicile status
- Sources of income
Further details are provided for each of the above headings. The sources of income heading, for example, comments on the issues arising for each of the following:
- non-UK bank accounts
- non-UK property/letting
- non-UK shares and dividends
- non-UK pensions
- non-resident trusts and trust income
- transfer of assets abroad
- claiming foreign tax credit relief
The wording of the toolkit is at times inelegant and less clear than it might be, but there are pointers throughout to other HMRC guidance, which may well be of value to professional advisers.
https://www.gov.uk/government/publications/foreign-income-toolkit
Related content from Claritax Books
Advising British Expats is a detailed guide to the tax issues arising for individuals who leave the UK to live and work abroad. Written for accountants and other professional tax advisers, the book also includes commentary on individuals coming to work in the UK.
