How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7306
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

It's not a tax question per se maybe, but it can be closely

This answer was rated:

Hi. It's not a tax question per se maybe, but it can be closely related. So let me ask here.I'm an expat from Japan (I'm officially living in the UK, i.e. I don't have an address in Japan) and my UK visa (Tier 2 general) essentially bans me from taking a second job.https://www.gov.uk/tier-2-general/second-jobI contacted my HR and confirmed that this restriction is about a second job in the UK. If I have a job outside of the UK, eg. in Japan, it has nothing to do with my UK visa, they said. That made sense.So, I can't do a job in the UK obviously, but then what about taking a job in Japan via the Internet? I can think of two cases. I'd like to know whether these are considered a job in the UK or not, or more practically whether they violate the Tier 2 restriction.A: I directly communicate with a client in Japan, they offer me a job via the Internet, I do the job, and they pay money to me.This doesn't seem "a job in the UK" to me, so maybe it's allowed. But then from the viewpoint of taxing, when people are not officially living in Japan, in the vast majority of cases, they don't have to pay a tax to Japan even when they are offered a job from Japan (I found a few of sources saying this). Then, a job like this can be taxed to the UK, and this can be a job in the UK after all.B: I found a job in Japan by registering myself to a cloud sourcing web site in Japan such as https://coconala.com/. I do the job for Japanese customers, and the money is paid in from the Japanese cloud sourcing company to my Japanese bank account.Again this seems a job outside the UK, so maybe it's allowed. Yet again, according to the same law, when one is not officially living in Japan, in the vast majority of cases, he doesn't have to pay a tax to Japan. So from the viewpoint of taxing, this kind of income may be taxable to the UK. Then it may be a job in the UK after all.Even if you can't answer, it would be most helpful if you could suggest who to ask this question.
JA: Sorry. Please ask it again.
Customer: It's not a tax question per se maybe, but it can be closely related.I'm an expat from Japan (I'm officially living in the UK, i.e. I don't have an address in Japan) and my UK visa (Tier 2 general) essentially bans me from taking a second job.https://www.gov.uk/tier-2-general/second-job
JA: Which tax year is this for?
Customer: future
JA: Anything else you want the Accountant to know before I connect you?
Customer: I actually don't know how this service works. Do I have to pay a fee? How much? When?

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

That seems a perfect way around your visa restriction. However, any income from that second job will be liable to UK Income Tax (IT) and will have to be declared on your annual self-assessment tax return.

Customer: replied 4 months ago.
Uh-huh, in other words, these kinds of jobs (A and B described above) can go along with my Tier 2 visa, and I'll still have to pay a tax to the UK. Is that right?

Yes, that is what I am telling you.

Customer: replied 4 months ago.
Can you tell me the real basics about "annual self-assessment tax return" in a few words?
Customer: replied 4 months ago.
Like where to look up for information.
Customer: replied 4 months ago.
Your answers above gave me good relief. Thank you!

Presumably, you are on PAYE and do not normally make a self-assessment tax return, yes?

Customer: replied 4 months ago.
I just looked PAYE up, but I have to say I'm not familiar with this concept. But I don't do self-assessment tax.
Customer: replied 4 months ago.
I get P60 every year

Is Income Tax and National Insurance deducted from your wages? If you get a P60 it sounds as though you are.

Customer: replied 4 months ago.
they're deducted.

Right, so you are on PAYE. Most people on PAYE so not have to self assess. However, if you get another job overseas then you will have to register as self-employed. The procedure is here:

https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

HMRC will send you a self-assessment tax return for completion at the conclusion of each tax year [5 April]. You can self assess online if you prefer.

Customer: replied 4 months ago.
Phew, good to know, thanks. This kind of clear answers I could not find anywhere on the Internet.

Delighted to have been of assistance.

Please be so kind as to rate me before you leave the Just Answer site.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 4 months ago.
Yeah, I just found those buttons. Have a great weekend.

Thank you for your excellent support.