SA106: How do I enter Foreign employment income with foreign tax paid?
You will need to include both SA102 Employment and SA106 Foreign income pages
1. Click on NEW PAGE
2. Click on SELECT on SA102 Employment
3. Enter the EMPLOYER'S NAME…
4. Click on SAVE once entries complete
5. Click on EDIT
6. Enter the address of your employer
7. Enter NNN/0 in the PAYE reference if it is a foreign employer
7. Enter NNN/0 in the PAYE reference if it is a foreign employer then click on SAVE
9. Click on INCOME '+' to add your P60 or P45 income
10. Click on Salary (P60) or relevant option from CATEGORY dropdown menu
11. Type your identifier for this entry...
12. Enter ONLY your income from the foreign employment
13. Click on SAVE
14. Now we need to include the foreign tax paid on the SA106 Foreign income page. Click on NEW PAGE...
15. Click 'SELECT' on Foreign Income (SA106)
16. On the Foreign income page, we need to add the foreign tax paid in the income section
17. Click on INCOME '+'
18. Click on Foreign tax paid on employment and other income from CATEGORY dropdown menu
19. Type "Foreign tax paid on employment income" or whatever you want to identify the entry as
20. Choose the relevant country from the dropdown menu
21. Enter the GBP equivalent of the taxable amount
22. Enter the GBP equivalent of the foreign tax paid
23. Click on SAVE
Do you know how much Foreign Tax Credit Relief you are entitled to claim? See the instructions below. If you are unaware of the amount of FTCR available on this income, you will have to read the double tax treaty between the two countries and see if there is a restriction on tax paid.
Helpful link regarding foreign income already taxed is: https://www.gov.uk/tax-foreign-income/taxed-twice#:~:text=If%20you%E2%80%99ve%20already%20paid%20tax%20on%20your%20foreign%20income
The working sheet to calculate the tax relief available; https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1066441/HS263_FTCRWS_for_income_2022.pdf
24. Want to claim Foreign Tax Credit Relief? Click on EDIT on the SA106 Foreign Income page
25. Enter the available FTCR in BOX 2 and click on SAVE
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