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The same screens are used for sole trade and partnership.
Where all or part of the trading profit was earned abroad, details of the amount of profit and any foreign tax paid should be entered.
Description of source, this information is not shown on the tax return but is listed as an item of foreign income.
Country, this information does appear on the tax return and must be entered.
Claim Tax Credit Relief (Y/N) enter Y in the claim tax credit relief field to obtain a tax credit, in the computation, for the foreign tax paid click here or more details of this type of relief.
Income received, The income entered here is part of the profit already declared and shown in the accounts. It is not added to that amount. Note that in the transitional year the SA system may not compute the correct double taxation relief as the income for the year is based on the average of two years profit whereas the foreign income for which relief may be claimed is the income for the basis period. If there is a shortfall in the foreign tax credit given, talk to HMRC. The best solution is probably to enter the shortfall in relief as tax paid in the SC60 tax paid for subcontractors field and make a note in the additional information box.
Foreign tax paid, enter the foreign tax paid. IRIS does not store rates of withholding tax. The foreign tax entered should be limited to the appropriate rate of withholding tax where a double taxation agreement exists between the UK and the country in question.
Date income received, this is for information purposes only and may be left blank.
It is possible to work in many countries. Details of income from each country should be entered. A claim for foreign tax credit relief is the most beneficial may of relieving foreign tax. IRIS will automatically give the appropriate amount of double taxation relief which means that the foreign tax given as a deduction for tax purposes is restricted to the lower of the amount of foreign tax and the equivalent amount of UK tax that would have been paid on that foreign profit. This restricted amount is included in box 6.9.
