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Taxes - Foreign Income
- Thread starter Jacobbarnard
- Start date
Good question, I'm doing my tax return for the first time and going through all those questions they ask you.. (got an extension until May here). Anyone? I'm guessing the answer would probably be yes but wonder what others do too???
I just lump it all together, I get the money to my PayPal or UK bank account, not to a foreign back account, so I interpret it that way. HMRC give different answers depending on who you speak to . I've even been told before I don't need to declare a small amount of money from a survey company... But I declare everything.
Thanks [member=920]katykicker[/member] I was just thinking that earlier - even if we get paid in US dollars when we pay it in to our bank account it's auto converted to GBP before it hits our bank account. Shame they aren't consistent with their answers at HMRC !
I only even include what I've been paid in ££'s. At the end of the day the work I did for $40 in May might have been £35 when I transferred it into my account but come January and the exchange rate has changed, suddenly it looks like I've received £45. << only an example, if you get what I mean.
HMRC stung me last year because of this, I think usually it doesn't matter but if you are "randomly" selected for audit then they begin demanding proof of where the money originally comes from and where the profit was made, to determine what rate of capital gains to apply.
Kastembrust said:
[member=6659]Kastembrust[/member] capital gains refers to when you see something and make money.. Not when you earn money for completing a survey for a US based firm?
katykicker said:
You're absolutely right and I agree but it didn't stop them coming after me, I paid an accountant to help and he was confused. They also tried claiming I was foreign currency trading and other things I've never even heard of.
This is something I've been thinking about too. I've not long started doing work for Utest and they pay $ via paypal, I've been keeping track of what I've been paid in dollars, and also what that converts to in pounds when I transfer it into my bank account. I assume I would enter the amount in pounds into my tax return? Does this sound right?
Also, just wanted to double check as I only started working from home last July... I registered for self assessment last year and have received my login etc. but I haven't had a letter or email asking me to fill in my tax return, I've logged in too and there aren't any notifications waiting for me. Am I right in assuming that this year's tax returns is for 2016/17, so the first tax return I would need to complete would be next year, 2017/18?
Sorry for so many questions! Thanks in advance!
Also, just wanted to double check as I only started working from home last July... I registered for self assessment last year and have received my login etc. but I haven't had a letter or email asking me to fill in my tax return, I've logged in too and there aren't any notifications waiting for me. Am I right in assuming that this year's tax returns is for 2016/17, so the first tax return I would need to complete would be next year, 2017/18?
Sorry for so many questions! Thanks in advance!
This is something I've been thinking about too. I've not long started doing work for Utest and they pay $ via paypal, I've been keeping track of what I've been paid in dollars, and also what that converts to in pounds when I transfer it into my bank account. I assume I would enter the amount in pounds into my tax return? Does this sound right?
Also, just wanted to double check as I only started working from home last July... I registered for self assessment last year and have received my login etc. but I haven't had a letter or email asking me to fill in my tax return, I've logged in too and there aren't any notifications waiting for me. Am I right in assuming that this year's tax returns is for 2016/17, so the first tax return I would need to complete would be next year, 2017/18?
Sorry for so many questions! Thanks in advance!
I do exactly the same for dollar payments received i.e. report in pounds what I received in my bank account after being converted by Paypal.
Yes the tax return is in GBP not USD.This is something I've been thinking about too. I've not long started doing work for Utest and they pay $ via paypal, I've been keeping track of what I've been paid in dollars, and also what that converts to in pounds when I transfer it into my bank account. I assume I would enter the amount in pounds into my tax return? Does this sound right?
Also, just wanted to double check as I only started working from home last July... I registered for self assessment last year and have received my login etc. but I haven't had a letter or email asking me to fill in my tax return, I've logged in too and there aren't any notifications waiting for me. Am I right in assuming that this year's tax returns is for 2016/17, so the first tax return I would need to complete would be next year, 2017/18?
Sorry for so many questions! Thanks in advance!
and also yes, the tax return for this year 2017-2018 won't be due until Dec 18/Jan 19, although theres nothing to stop you doing it after the end of the tax year, after end of April. It might be wise to do is sooner rather than later if its your first year as if theres a lot of tax to pay, they may also ask you to "pay on account" for the following year, so makes budgeting easier as you'll know whats due. There's no need to wait until the last minute but yes you can't do anything until the end of the tax year in April -18.
Hope that makes sense!
Thanks for the information @Hezzy , that's really useful to know. I didn't fancy waiting until next January to do my tax return so this is music to my ears!
MyMarvellousMoney
SuperStar Helper!
This is good to know. I don't declare anything because it's usually less than £20 a month (even then it's not even every month I commit to it!) but I guess you'd only need to if you're self employed? I never thought about it as foreign income with some of these sites...
You need to be declaring everything over £300 a year I do believe
but you'd need to double check that x
MyMarvellousMoney
SuperStar Helper!
Ooh thank you! I don't think I quite make that much (would be nice) but I'll definitely double check itYou need to be declaring everything over £300 a year I do believe