Self Assessment for Foreign Income

If you are UK tax resident, you are taxed on your worldwide income. Any income earned outside the UK must be reported on your Self Assessment return.

What Counts as Foreign Income

• Income from overseas clients or employers
• Rental income from property abroad
• Interest from foreign bank accounts
• Dividends from foreign companies
• Pension income from overseas
• Capital gains from disposing of foreign assets

Reporting Foreign Income

Foreign income is reported on the foreign supplementary pages of your Self Assessment return. You need to:

1. Convert the income to pounds sterling using HMRC's exchange rates or the rate on the date of receipt
2. Report the sterling amount
3. Declare any foreign tax paid on the same income
4. Claim double taxation relief if applicable

Double Taxation Relief

The UK has tax treaties with many countries to prevent the same income being taxed twice. If you pay tax abroad on income that is also taxable in the UK, you can claim relief for the foreign tax paid — either through the treaty rate or by claiming a credit against your UK tax.

Currency Conversion

Use either:

• The exchange rate on the date you received the income
• HMRC's published average exchange rates for the year

Be consistent in your approach and record the rates used.

Getting It Right

Foreign income adds complexity to your return. If you have significant overseas income, consider professional advice. For straightforward cases (invoicing a few overseas clients), Accounted can handle the record keeping and conversion.

Stop dreading your Self Assessment. Accounted tracks everything throughout the year so January is just a click, not a crisis. Try it free.