Foreign incomes, self assessment

Hi. I have few questions. In tax year 23/24 I worked abroad at sea on a cruise ship as a musician, it was only one source of my income. The agency which hired me registered in Panama, but ship under Maltas flag, itinerary outside of UK, salary was in Euros. I’m going to fill in my self assessment. I’m not interested in Seafarers earning deductions because the incomes in total approx 12500 under tax free allowance. But should I declare this money as a self employed or employed ? Because I was doing short contracts few months each for this company. And how should I pay NI ?

Hi,
You will declare this as self employment and convert the income to sterling. This will then determine any National Insurance due.
Thank you.

Thank you. But if I will declare this as a self employed income but I don’t have invoices which are mandatory for self employed as a proof of income? I only have contracts from the foreign employer and payslips. Anyway I should declare it as a self employed income?

Hi,
Your contracts will be the proof and yes still declare as self employment.
Thank you.

Thank you. Now I’m filling my tax return. I don’t understand, should I declare this income in a Foreign Section or just like normal self employed income? Because in the tax return there is a question“If you received any foreign incomein, do you need to complete the foreign section?” I answer - Yes. After I can see the foreign section in my tax return. In the Foreign Section: Which of the following types on income did you receive from overseas sources? - I chose “Employment, self-employment and other income which you paid foreign tax”. And at the end of tax return I see “Calculating your foreign tax credit relief” and information that I have to filling the Foreign Tax Credit Relief Working Sheet. But I didn’t pay any taxes abroad on the ship and I don’t want to claim this relief, also the amount of money less than 12570£ and I just want to declare this income. What should I do?

Now I understand that I need to register as self employed because I was doing contracts and didn't know I needed to register as self employed CWF1 with this form. So I registered before 5th October 2024 for self assessment SA1 and got my UTR because I have foreign income that is taxable in the UK (this salary), I registered SA and ticked that in the checkbox. But to declare that income as self employed I first need to register as self employed but I missed the deadline for that 23/24 tax year. If I select in SA that it is self employed income but I haven't registered yet will that be a problem? Or I can register now without any problems?

Hi,
If you have foreign employment income, this should be declared in box 1 of the employment section of SA102.  For foreign self employment income, it is declared on SA103:
(Self Assessment tax return forms).  This adds the income into the tax calculation.  The foreign page SA106 would only be needed if you had to pay tax in an overseas country on the income, because of the tax treaty.  You would then be able to claim a foreign tax credit (Tax treaties).
Thank you.

Hi,
You can still register as this is for the National Insurance side of things, but you will need to do it before you file your tax return.
Thank you.

I moved to the UK in 2021 I still had US income in 2021, I realize now i need to report my us income to UK so i've registered and been accepted to fill in a self assessment I am wondering in the section where it says to report US taxes paid on the US income (optional)- I don't know the exact amount because my US tax return runs Jan - Dec If i leave it blank will it assume i didn't pay any us tax on that us income?

Hi ,
 

Have you reviewed the guidance at RDR3 (:    RDR3 Statutory Residence Test   )  .  If split year treatment does not apply, then you will be required to declare your US income in the foreign section of the the tax return (SA106).  You may be able to claim a foreign tax credit to set against any UK tax arising from this income.  You will have to work out the amount of foreign income and tax and convert it to UK pounds sterling. Thank you .