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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 14450
Experience:  International tax
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I was looking advise regarding tax on foreign income, as I am studying at Uni

Resolved Question:

Hi, I was looking for some advise regarding tax on foreign income, as I am studying at University in the UK and have been using sums of money to pay my expenses from an overseas account. Thus I have been transferring money to and from my Singapore and UK account without realising that the money might be taxable??
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloThere are a number of ways that international students may get financial support for themselves whilst studying in the UK:scholarships or bursariesfamily giftspersonal savings accumulated before arrival in the UK.Your transfers of money is not taxable in the UK.Money brought to the UK for your maintenance is not taxable.You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.
Customer: replied 1 year ago.
Clarification:- I am not an international student, I am British but I have been working in Singapore for 7 years and returned to study a Master degree in the UK. My savings are in a Singapore account and I have been using the money to pay for my expenses while studying in the UK - by transferring into my UK account etc. I am now classed as a UK resident.
Expert:  TaxRobin replied 1 year ago.
I see.Thank you for adding that information. The money in the foreign account is not taxable to you because you were outside the UK for so long.You know that any interest you earn is going to be taxable but the transfer of the funds is not a taxable event.
Customer: replied 1 year ago.
Ok so a few more details about my situation - I have been in the UK from Jan-March 2015 to organise my studies, before returning to Singapore to work for four months. I have been in the UK since mid August 2015 to present. During this time I have been earning a part time salary of 1.5 thousand pounds per month while studying in the UK, although I have not been doing any work duties. Do I need to declare these funds to HMRC and pay tax on it.
Customer: replied 1 year ago.
Clarifying that comment - my employment in Singapore has continued through the study period, so the 1.5K per month comes from the Singapore employer into my Singapore Account.
Customer: replied 1 year ago.
After my studies in the UK, I shall return to work in Singapore for two more years before returning to the UK.
Expert:  TaxRobin replied 1 year ago.
ThanksYes you do, as you are a tax resident again you are required to declare your income. Even a part time salary is required to be declared.That foreign income is reportable by you and taxed in the UK.
Customer: replied 1 year ago.
So I can transfer funds from Singapore to UK account as I need (tax free) to pay for my studies and living expenses etc, but the part-time salary from Singapore (even though I was not doing duties) must be declared in a self-assessment form to HMRC. Has the deadline passed for that or can I declare it end of this year?
Expert:  TaxRobin replied 1 year ago.
That is correct. Transferring funds is not taxable but the income you are earning while a tax resident of teh UK is taxable to you.You need to register. Register by 5 October following the end of the tax year you need to send a tax return for.The tax year is from 6 April to 5 April the following year.It can take 20 working days (this is usually 4 weeks) to complete the registration process.https://www.gov.uk/register-for-self-assessment/not-self-employed
Customer: replied 1 year ago.
Have I missed the tax year? Since I was in the UK, (with the part time income) already from August 2015 until present? Or is it fine to submit by October this year ... Am I a Tax Resident immediately from when my studies commences or following 180 days of arrival? Once I return to UK for good... can I transfer all my savings to the UK account - How does the tax situation work for bringing foreign savings (50-90K) into the UK, after overseas employment ends?
Expert:  TaxRobin replied 1 year ago.
When you return to the UK you become resident again. You do not have to wait for any days. You can register now so you do not miss the time for Oct. If you transfer your savings then you generally do not pay tax on that.
Customer: replied 1 year ago.
thank u.. I need to clarify on which period I must declare:- I was in the UK only briefly to organise my studies from Jan-March 2015 (100 days) and then back overseas for 4-5 months, before returning to UK in mid August - to present. So I must declare from August or from January??
Expert:  TaxRobin replied 1 year ago.
August. If you had not returned to attend school in Jan then you declare form August on.
Customer: replied 1 year ago.
thank you. You use the word 'generally' regarding transferring foreign sums into local account in UK. Which part of the sum (under 100K sterling might be taxed... is it the interest earned from the UK bank?
Expert:  TaxRobin replied 1 year ago.
Interest yes.I do tend to use the word "generally" in much of my advise. That is mainly because there can be a twist here or there in tax and it can change the whole situation.
Customer: replied 1 year ago.
hmmm... and then when I return overseas to work, (after my course) then my status will be non-resident again and I do not need to declare?
Expert:  TaxRobin replied 1 year ago.
You can return to a non resident status. You would not be required to declare your foreign earned income.As long as you are not leaving to work for a UK employer your obligation would cease to the UK for tax.Make sure you let HMRC know when you are leaving https://www.gov.uk/tax-right-retire-abroad-return-to-uk
Customer: replied 1 year ago.
I wonder if it is a problem... I think I mentioned to HMRC that I had returned to the UK in Jan 2015, as I needed to check my resident status while applying to the university, but I didn't notify them that I had gone back overseas... does that complicate the period of tax declaration or does it actually depend on the period of time in the UK which was only three months at the start of the year?
Expert:  TaxRobin replied 1 year ago.
If you informed HMRC that you had returned then your earnings form Jan on would be taxable. You would be seen as resident form Jan on and the fact that you left for a short period is not relevant except that you would be taxed on the earnings (if you had any).
Customer: replied 1 year ago.
Would that then mean I have missed the October 2015 deadline - can the period be reflected in the October 2016 or would there be a fine now..?
Expert:  TaxRobin replied 1 year ago.
Yes that would mean you missed that but you should just register. HMRC can waive a penalty for not registering on time. You would just need to explain the reason behind your not registering.I think I am leaving now, I have enjoyed assisting you and answering all your posts.
Customer: replied 1 year ago.
OK thank you for that
Expert:  TaxRobin replied 1 year ago.
You are most welcome.Your positive rating is thanks enough.
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 14450
Experience: International tax
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