dominoman

Hi all. It's my first year here in the middle east and I realise I need to do my UK tax return.

How do you guys do it?

In the UK I have always busy filed using the hmrc online form, which was pretty straightforward. I have a savings account and some dividends but nothing major. Now that I'm here we have rental income from renting our UK house.

I was planning to do the same this year and use the online hmrc form but according to this I can't as I'm no longer a resident.
https://www.gov.uk/tax-uk-income-live-abroad

Now I'm worried as it seems paper returns have to be in by end of October.

Am I misunderstanding? What's the easiest way to submit?

Thanks for any advice!

Sabi Star

If you are renting through an estate agent I think they are legally obliged to inform HMRC of your rental income. You can phone the Self Assessment help phone line for people overseas on 00 44 1619319070 for information - week days UK time 8am - 8pm - also open at weekends - shorter hours.

Millhouse

I filled online last week, while claiming non residence.

Should add that I used 'software' for this. Same login etc. I use taxcalc, it's very easy and costs about 20quid.

Pongo

Likewise, I use taxcalc

quiltman

Yes, to file online from overseas you MUST use one of the approved software packages as these include S109 form. I've used taxcalc for some years and it works fine and has never been rejected by HMRC.

dominoman

Great. Thanks all. Taxcalc it is then.

I presume the deadline is the same as it is for using the hmrc website to submit it. Ie January not end of October?

Millhouse

Yup

sicklyman

not only that but they're obliged to deduct tax prior to paying you unless you tell them you are an HMRC-approved non-resident landlord (NRL).

You can apply for NRL status with HMRC (google form online) and, if approved, they'll give you a code you give to your letting agent so that they don't have to deduct tax.

Be aware that if you don't have NRL status and your tenant pays you directly then they are responsible for withholding tax as follows:

tenants probably have no idea that this is their responsibility however...

Sabi Star

Yes I thought that was the case but did not check. I know someone who has this done for them by large London estate agent - so thought it maybe was not be done by all agents. I don't think this person has any dealings themselves with HMRC but only with tax authorities where they live - which is France.

archie159

I used to use software, one of the packages someone on this board recommended, but to be honest I found it a bit of a pain. I now just do it on paper - really quick (especially if you keep a photocopy of last year's, and just copy/update the figures). I try to remember to do it in June, and then post it when I am back in the UK in July or August. I don't have property to worry about, just some UK income & investments (separate to my UAE income etc), so maybe software is better for those with property.

dominoman

How would this work? If they withhold tax then how do they then pass that on to HMRC? My tenants shouldn't have to deal with the taxman on my behalf.

It would all be very complicated. The amount of tax due can only be worked out at the end of the year once the interest deductions and other expenses (letting fees, maintenance, inspections costs etc) have been deducted. And in my case the income is then split amongst me and my wife as we jointly own the property.

Much easier to receive rent and treat it as any other income - with the tax worked out and paid once the tax return is done

sicklyman

don't shoot the messenger. I'm just quoting the government's website advice.

You're right that it's easier taking the whole amount and declaring the income on your return. But I wonder if the rule is there to tackle landlords who don't actually do that... ahem...