# UK Remittance Basis Questions on Income Reporting



## saudi01 (Nov 27, 2020)

Hi,
I have a couple questions on the 'remittance basis' option with HMRC. I'm a US citizen, here in the UK on a Tier 2. I have claimed the remittance basis, but I believe I've made a mistake in the forms.

My question is, if you are claiming the remittance basis and not remitting anything, do you have to report your foreign income on your self assessment, even though you aren't going to owe any tax on it?

Some explanation below:

On this HMRC site ( Remittance basis 2017 (HS264)) it states "If you’re taxable on the remittance basis, you’re *liable* to UK tax in the normal way on your UK source income and gains. But you’re *only liable* to UK tax on any remittances (amounts) of foreign income and gains that you remit to the UK (see below for what we mean by ‘remitted to the UK’). If you choose to be taxed on the remittance basis you must include these remittances on your tax return." (emphasis mine)

Now, I pay all my UK employment taxes through PAYE, but I do have some investments (income over £2,000) in the US. I have never brought any funds from the US to the UK, so my 'remittances' are zero. From that HMRC site, it seems to me that I am only liable for UK tax on the remittances (in my case zero), so I am not liable for any UK tax on those. My main question is the next part, where it says "you must include these remittances in your tax return". Since I don't have any remittances, I haven't included anything about them in my self assessment. That seems to make sense to me, and this is what I've been doing. I didn't remit anything and I've never put anything about this on my tax return.

However, this HMRC site (Tax on foreign income) states "You must report foreign income or gains of £2,000 or more, or any money that you bring to the UK, in a Self Assessment tax return."

That page says you must report the foreign income, but then later says you can claim the remittance basis. It makes no mention or differentiation of what reporting is required if you have claimed the remittance basis and remitted nothing.

I've used the TaxCalc software, and at least with foreign dividends it just adds a note "Remittance basis is claimed, but there were no remittances during 2016-17." and doesn't add the actual data from the dividends that I entered.
So I'm quite confused.


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