REQUEST A CONSULTATION ON FOREIGN INCOME TAXATION ✅ TAXES ✅ SERVICES

Lawyer's actions:

gathering information about the client's foreign income sources;
verifying the client's tax status (resident/non-resident) according to the Statutory Residence Test criteria;
analysing the existence of double taxation agreements between the United Kingdom and the country where the income is received;
preparation of a written legal opinion on which tax regime applies: arising basis or remittance basis, and what tax consequences are possible;
provision of recommendations on tax risks and ways to minimise them.

Lawyer's actions:

verification of the documents provided (contracts, certificates of tax payments abroad, bank statements, extracts from tax authorities of other countries);
assessment of the possibility of applying tax benefits or deductions;
calculation of the preliminary tax burden in case of declaring foreign income in Self Assessment;
preparation of a written tax plan or advice on further actions.

Lawyer's actions:

providing instructions on how to include foreign income in the Self Assessment Tax Return;
if necessary, participating in the preparation of the tax return and calculation of taxes;
supporting the client in communicating with HMRC (responding to enquiries, justifying sources of income, submitting documents in English);
advising on liability in case of failure to file or errors in reporting.

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Do you need to declare foreign income in the United Kingdom?

If you are a tax resident of the United Kingdom, you are required to report all sources of income to HMRC, including income received outside the United Kingdom.

This could include foreign salaries, rental income, investments, dividends, pensions or any other income.

Consultant Legal Marketplace provides advice on foreign income tax in the UK, taking into account your status, double taxation and possible tax relief.

How is foreign income taxed in the United Kingdom?

The taxation of foreign income depends on:

your tax residence (determined by the Statutory Residence Test);
the method of taxation: arising basis (all worldwide income is taxed) or remittance basis (only income transferred to the UK is taxed);
the existence of double taxation agreements between the UK and the country of origin of the income.

We:

analyse your tax status;
help you choose the optimal tax regime;
calculate the possible tax burden and help you apply for tax relief.

What documents are required for declaring foreign income?

For correct tax reporting, you need to collect the following information:

confirmation of sources of income (contracts, certificates, bank statements);
documents confirming taxes already paid abroad (if any);
financial statements in the case of business activities outside the United Kingdom.

Consultant lawyers:

check the completeness and accuracy of documentation;
analyse possible discounts and deductions;
prepare tax advice or assist the client in submitting a Self Assessment.

What happens if you don't declare foreign income?

Failure to declare income abroad may result in:

penalties from HMRC;
additional tax assessments with interest;
tax audits and loss of tax benefits.

That is why it is important to obtain professional advice before filing your tax return.

Conclusion

Consulting on foreign income taxation in the United Kingdom is an important step for those who earn income abroad. The Consultant legal marketplace provides comprehensive legal support, helps you avoid tax risks and ensures that your reporting complies with UK law.