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Tax and pension investment queries

Tax and pension investment queries

Old Nov 18th 2019, 7:58 pm
  #1  
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Default Tax and pension investment queries

Hi, I am renting my apartment in the UK and would like to complete a UK tax return. Wondered if this is just the standard tax return form plus the property tax supplement form? Are there any additional forms I require to state that I am no longer a resident?

with regard to pensions is it worth continuing to contribute NI payments if I do not intend to return to the UK? I will receive RSP from my employer here after completing one full tax year.

thanks for the advice.
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Old Nov 18th 2019, 8:36 pm
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Default Re: Tax and pension investment queries

Have you completed the P85 form which tells them you’re leaving the UK?
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Old Nov 19th 2019, 7:35 am
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Default Re: Tax and pension investment queries

On the property point, you need to ask HMRC to register for the non-resident landlord scheme in order to receive rents gross. Otherwise your tenant / letting agent is obliged to withhold tax from rental payments and report this to HMRC.

On the pensions point, it is worth paying voluntary contributions to get the full state pension. You can request a state pension forecast to find out how many years you still have to contribute to receive the full SP.

A google of 'non resident landlord hmrc' and 'state pension forecast' should give you the info you need (sorry I'm using my phone just now so cant link).
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Old Nov 19th 2019, 9:57 am
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Default Re: Tax and pension investment queries

There are also supplementary residence pages to the tax return to complete.

When did you leave the UK? Tax reporting can be complicated in the tax year that you leave.
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Old Nov 19th 2019, 7:37 pm
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Default Re: Tax and pension investment queries

Dunno if this has changed, but HMRC told me I had to use software to file my UK taxes, so I used 123efiling, and it is a slick piece f kit with great support. That said, I am not sure, bar the few extra pages, why this could not be done via HMRC website as all the relevant boxes seem to appear.

Your major headache really is calculating your days resident in each country. Look up the definitions on HMRC and CRA and calculate accordingly.
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Old Nov 19th 2019, 7:56 pm
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Default Re: Tax and pension investment queries

You can file a return by paper but the deadline is 31 October after the tax year. The deadline is 31 January after the tax year for e-filing.

You are probably best e-filing as the software should get you to the right answer.

As Tumbling_Dice has said, you need to provide details of your UK presence each tax year. You are present in the UK in any day that you are present at midnight on that day.

If you google 'rdr3' you will get more information on how UK residence is assessed...probably more information than any sane person would want!
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Old Nov 19th 2019, 10:56 pm
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Default Re: Tax and pension investment queries

When I was in tge UK, I akways used TaxCalc. £50 a year very well spent!
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Old Nov 25th 2019, 3:23 pm
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Default Re: Tax and pension investment queries

I arrived in 1991 and continued to pay into NI, and have 30 years in which was the original full requirement before it was raised to 35 years a few years back. Originally I was only paying around 150 pounds annually to get my 30 years but the figure to top up now is closer to 700 pounds annually. I'm happy to pick up my 30/35ths which will be close to 140 per week when I reach 66 in 3 years time.

Last edited by Kentonmag; Nov 25th 2019 at 3:27 pm.
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Old Nov 25th 2019, 3:38 pm
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Default Re: Tax and pension investment queries

Originally Posted by Kentonmag View Post
I arrived in 1991 and continued to pay into NI, and have 30 years in which was the original full requirement before it was raised to 35 years a few years back. Originally I was only paying around 150 pounds annually to get my 30 years but the figure to top up now is closer to 700 pounds annually. I'm happy to pick up my 30/35ths which will be close to 140 per week when I reach 66 in 3 years time.
My understanding is that you can pay voluntary class 2 if you are working abroad but if you are not working then your only option (if you wish to do so) is to pay voluntary class 3. I'll only have about 18 years so far but if I can pay voluntary class 2 (c£150 per year) surely it would be a no brainer to make these payments to get the full SP (the extra contributions would be more than made up by the additional SP amount in the first year.

Am I missing something? (NIC is not my strong point!)
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Old Nov 25th 2019, 3:52 pm
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Default Re: Tax and pension investment queries

Yes I could pay up but I inquired last year and was quoted 700 pounds per year. I worked out that to get that 700 x 5 years back I would have to be taking pension for just over 3 years, until I'm 69. My wife also has 30 years in as well. We are both retired now at 62 & 63 and have more income than we can spend so whilst you are correct it seems a no brainer the only people benefiting from our extra money (should we both live beyond 69) would be our kids.
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Old Nov 25th 2019, 4:00 pm
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Default Re: Tax and pension investment queries

Class 2 are for self employed and those working abroad (£3 a week) and Class 3 for employed at £15 so I guess you've been quoted the wrong NI rates at £700, it should be Class 2 and is well worth while topping up for most people!
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Old Nov 25th 2019, 4:07 pm
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Default Re: Tax and pension investment queries

Thanks I will inquire again to see if I was just given the incorrect info previously.
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Old Nov 25th 2019, 4:49 pm
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Default Re: Tax and pension investment queries

No, I think the £700 rate is right as you are now no longer working abroad. You can only pay the Class 2 if you are in employment abroad.
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