Anniesecrest

Hi,
Another question I figure has been asked before and I apologise for that.... but... can someone help..
i have been here in the US now for 2 years..
When I left I informed the Tax office etc etc.
I receive (into my English account) 2 military pensions (war widows and both are tax free) and a monthly rent for my property... again I informed the Tax office I wasn’t living in the UK and I have a Tax very saying I am exempt from paying tax in England for it.. today, I received a £100 penalty notice because I haven’t sent in a tax return ?
I wasnt asked for one last year?
so.... should I be having to a) pay any tax in England
b) why have they suddenly sent me a tax return request ?...Sny hell would be grateful

christmasoompa

Hi, welcome to BE.

Is the property you rent out in the UK? If so, then yes to both I’m afraid. https://www.gov.uk/tax-uk-income-live-abroad

HTH.

Cook_County

You are required to file annual UK self-assessment tax returns each year reporting income & expenses. You will also be reporting the income and claiming the same expenses - plus depreciation - each year on your annual US income tax returns.

Lewis45

You are classed as a non-resident landlord. If you have a letting agent managing your property normally they should deduct any tax from the rental income before paying you, and file a self assessment tax return on your behalf.

Mercury39

You can also apply to have UK rental income paid without deduction of UK tax, look up form NRL1, and then you pay any tax due at the end of the year when you submit your self assessment. This is preferred option for many overseas landlords, because if you are are British Citizen you still get your annual UK tax allowance, which means if you net profit (rent less allowable costs) is less than the annual allowance you have no UK tax to pay.

Note: A letting agent completing a self assessment on your behalf seems very odd to me, I would not want to share the rest of my UK financial information with a letting agent to allow them to submit my self assessment - but each to their own!

christmasoompa

I've never heard of that either, and I don't even think they'd be allowed to? They're not mentioned on the list of 'authorised persons' that you can nominate to deal with HMRC on your behalf, unlike an accountant etc.