UK Income while living abroad

adam562

Hopefully someone here will be able to put my mind at rest and give me some advice. Here is my situation:

I am a British citizen who has lived in the UK all my life. I graduated from uni and moved abroad to a European but non-EU country to be with my girlfriend in July 2007. I do freelance translations and I have a work visa for the country I live in. Tax wise everything is fine here (I don't even have to pay anything because I don't earn enough).
However, I am registered as self-employed in the UK because I realised I would be getting payments into my UK bank account, because many translations are done for companies in the UK or other EU countries and they pay via PayPal (which can't be linked to an account in my new country) or directly into my bank account. According to all the forms I received from the HMCR - I am entitled to split year treatment, and am non-resident from the time I left and I have not gone over the 91 days threshold. So, obviously, I don't have to declare the income that was made solely in my foreign country.

I presume that I do need to declare the income that was paid into my UK bank account (only 1,800 for the 07-08 tax year, so I wouldn't be paying tax on it anyway, I think) and I take it I just need to simply fill in the self-employed section of the tax return plus the residency bit which states I was resident until July and then I am no longer resident?

I'm getting completely stressed out by the whole thing, I don't want to make some sort of mistake and get into trouble!

Can anyone help? I'd really appreciate it!

Cheers

Merlin_Accounts

Hi

Firstly, yes, the split year treatment is correct if you have left the UK with no intention of returning, other than for visits that is (subject to the average 91 days per year rule).

The split year treatment means that any income you earned from your self employment after you left the UK will not be subject to UK tax, even if your customer is in the UK (you must declare it to the authorities in your present country of residence).

Any income that does fall into the UK tax regime (for what, 3 months or so for you?) will still have your UK personal tax allowances available for set off (assuming not fully used elsewhere in the UK). On the figures you quote it is possible there will be no UK tax to worry about.

Your UK self employment actually ceased when you permanently left the UK, so though you will need to do the self employment page, it will only be upto the date you left.