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HMRC internal manual

Claimant Compliance Manual

Particular aspects: income - customer earned income outside the UK

Customers must tell us about all their earnings from employment, regardless of where they are earned.

You need to be aware of income earned from outside the UK where the customer:

  • has come to this country from abroad and they are making their first claim for tax credit,
  • works in the travel industry, for example for an airline, and their earnings are apportioned to reflect time spent in UK and earnings outside of UK
  • is resident in the UK, but works abroad, for example someone might commute from the UK to France or the Republic of Eire.

In these circumstances you may need to look for other evidence of earnings than the P60, as the earnings from outside the UK will not be subject to PAYE

If the income is paid in a foreign currency it should be converted into sterling at the average exchange rate for the period of 12 months ending on 31 March in the year in which the income arose. To find the appropriate rate go to the HMRC Internet Homepage and select Exchange Rates.