SA106

The SA106 is a form that you attach to your main SA100 Self Assessment tax return form if you need to declare and pay tax on foreign income or profits from selling assets (property, shares, and so on) that are abroad. You can download the SA106 form on HMRC’s website.

How to submit an SA106 form

If you submit your tax return by paper, you have to print the SA106, fill it out, then post it to HMRC by 31st October. And don’t forget to attach the SA100 to it when you do this. You can’t submit your SA106 without it.

Of course, if you do your tax return online, you don’t need to worry about any of this. You can submit everything in one by 31st January of the following year.

Timeline to submit in the 2023/24 tax year

  • Tax year: 6th April 2023 – 5th April 2024
  • Register for Self Assessment: 5th October 2024
  • Submit SA106: 31st October 2024
  • Deadline to submit tax return online: 31st January 2025

Does everyone with overseas income fill it in?

There are some exceptions to having to fill out an SA106. If you earn foreign income from property, for instance, you don’t have to declare any annual income less than £1,000. This is covered by the property income allowance.

Here are some more examples:

  • If your foreign income comes from a partnership, you fill out the SA104 form instead
  • When you earn money abroad from employment, you fill out the SA102 form
  • If your income comes from property (specifically a holiday let) in the EEA, you need to fill out the SA105 form

I’ve already paid tax on the income

If you’ve already paid tax on your foreign income, don’t worry. You’ll still need to declare it to HMRC but you can claim it back.

The Foreign Tax Credit Relief enables you to deduct the tax you’ve already paid from your UK tax bill. It is important, however, to check with HMRC about the Double Taxation Agreement between the UK and the nation to which you have already paid tax on your foreign earnings.

Frequently Asked Questions

  • Do all nations have Double Taxation Agreements with the UK?

    Not at present – if you are working abroad then you need to ensure you understand your tax obligations in full to avoid non-payment and potential fines. You can usually find out about tax obligations via the national government websites, for their equivalent of HMRC.

  • How long should I be storing my Tax Records?

    In the UK, you must keep your tax records for at least six years from the end of the relevant tax year. Accounting software can help you to digitally store your records without taking up space in your office! Contact our experts for support with your accounting today.

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