Sorting out UK tax return - HELP
 

OK, so i've left it rather late, but I thought I'd dive into our UK Tax return today....and now I have a headache :)

So, background to this

we have a house in the UK and have been renting out, at a small loss, so there is no profit
We live in Canada and have done for 18 months (having moved just before the end of the previous tax year- so didnt need to get involved in all this last year)

I also earned a small amount of freelance income - I was a sole trader BEFORE we left the UK

So...filling out my UK tax return, I have a number of questions. Can anyone help...

a)On the first couple of pages of SA100, it asks about income etc. Is this income in the UK only?

b)It then asks about foreign income. (Q6) If I'm resident in Canada, then do I need to fill this bit out? (I have filled out all the non-resident stuff). How do you do that, as we haven't done our Canadian Tax for 2006 yet (so for UK purposes, Jan-Apr 06).

In the foriegn section of SA100, it has boxes for foriegn income. when using Tax-Calc, it says.... "You have told us in the non-residence section that you are either not domiciled in the UK or not ordinarily resident and a citizen of the Commonwealth or Republic of Ireland. If so, the remittance basis applies and some types of foreign income are taxable only if you bring them into the UK.

We wont be bringing that in the UK, so do we need to list it?

As we need to say on our Canadian Tax return our foreign income, then isn't it 'covered'?


This is all UK related now, but thought I'd ask?
c)The rented house is in joint names, so do we split the loss between the two of us on the forms, or show the total loss on each form?

d)I have listed the freelance income as down on 'any other income', but it doesnt seem to take the loss of our property into account (even though we are still under the thresehold). Is that right.

If anyone can help, then I'd be really grateful :)

Re: Sorting out UK tax return - HELP
 

also longer term, I will be continuing to recieve a couple of design commissions from UK companies. Given that I'm not resident, once I'm PR, I assume I'll need to charge then in CDN $

Re: Sorting out UK tax return - HELP
 

Does the UK tax return not have a guide with it ? Or if it is a computerised UK tax return does it not have a help icon to use.

The question of your property loss - as in joint names half of the loss can go against your freelance UK income. Can't claim full loss as property in joint names unless you have previously elected for it to be fully allowable previously.

Used to work for the Inland REvenue and this is how it worked then - pretty sure it is still the same.

Re: Sorting out UK tax return - HELP
 

http://www.qck.com/tax-advice.html?s...FR6ZEAodVxMdGQ

Try this link - see if it is any use

Gaynor

Re: Sorting out UK tax return - HELP
 

Yeah, but I'm buggered if I can understand it :)

Cool, thanks. 50% of our property loss exceeds the small bit of freelance, so thats straight forward. Still no UK tax to pay :D

Excellent, that explains it much better for a thickie like me!

Re: Sorting out UK tax return - HELP
 

In your case, I'd be more worried about my Canadian tax return. I'd be getting an accountant pretty sharpish, if I were you. You have "audit me" written all over you. I'm not suggesting for a second that you are a crook but your situation looks like one that will attract attention, followed by demands for proof. That is best avoided, believe me.

Re: Sorting out UK tax return - HELP
 

already have one thanks :)

Have all the proof for the UK mortgage, rental income and the ickle bit of freelance I did make from the UK