ILR and UK tax question

[galahad]

Hello folks,

Really hope someone can help clear this up for me.

I am a technical consultant and I was on a Post Study Visa in 2009. I applied for my initial Tier 1 General Visa in 2010 while in the UK using multiple earnings i.e. I had a full time UK job and I also provided some technical support work in America for a few months.

I have paid tax in America for the earnings made and I have payslips and bank statements to prove this. I used them for my initial application and everything was verified and approved with no issues.

For my extension, I used only UK earnings.

I am able to apply for ILR early next year and I need to know if I have to pay UK tax on my American earnings used in 2010.

I would be grateful if knowledgeable people can reply with some definitive answers and references if possible as I have tried reading some of the HMRC documents, but they are very confusing.

Many thanks

[argus7]

Did you consult a tax specialist. Was this USA income declared via a TAX return. If you have paid US tax they will request proof from IRS.

[galahad]

Thanks for your reply.

I did not declare the USA income via a tax return in the UK as I was already taxed for the income.

I am happy for them to request proof from IRS, but the question still remains, do I have to pay UK tax on this?

I just need to know the correct thing to do, so I can proceed accordingly.

Like you suggested, I may need to consult a tax specialist.

[hellonewhere]

If you are a UK resident, then yes you have to declare it on your tax return; despite having paid the tax in the US.

You will declare it under foreign income on your tax return, and be given a double tax relief.

Work out your residence status

Whether you’re UK resident usually depends on how many days you spend in the UK in the tax year (6 April to 5 April the following year).

You’re automatically resident if either:

you spent 183 or more days in the UK in the tax year
your only home was in the UK - you must have owned, rented or lived in it for at least 91 days in total - and you spent at least 30 days there in the tax year


You’re automatically non-resident if either:

you spent less than 16 days in the UK (or 46 days if you haven’t been classed as UK resident for the 3 previous tax years)
you work abroad full-time (averaging at least 35 hours a week) and spent less than 91 days in the UK, of which less than 31 days were spent working

I will refer you to this document;
https://www.gov.uk/tax-foreign-income/overview

[galahad]

Thanks.

I'll read through it