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-   -   UK tax return help (https://www.englishforum.ch/finance-banking-taxation/293948-uk-tax-return-help.html)

plwinter 05.09.2019 09:39

UK tax return help
 
Hello,

Can anyone recommend a tax advisor, financial advisor- I have UK property and additional UK income and live in CH! Would like advice on domicile etc!

Thanks in advance!

fatmanfilms 05.09.2019 13:41

Re: UK tax return help
 
Quote:

Originally Posted by plwinter (Post 3097754)
Hello,

Can anyone recommend a tax advisor, financial advisor- I have UK property and additional UK income and live in CH! Would like advice on domicile etc!

Thanks in advance!

UK domicile is very difficult to shake off. It's nothing to do with where you live.

Income from UK Property is taxable in the UK, you currently get a UK tax allowance against that income. Investment income will be taxable in CH

Sagiquarius 25.10.2019 11:04

Re: UK tax return help
 
Have you set up a personal tax account and registered for self assessment with HMRC? If not, you should do so and you can then lodge a tax return on line. If you have a letting agent in the U.K. then they will be obliged to deduct basic rate tax at source from your net rents. As you are entitled to a personal tax allowance then you will have to claim a refund each year. The self assessment tax return does this. Donít forget you have to enter your total world wide income but U.K. tax is not charged on foreign earnings. Youíll need to keep a record of days in/out of the U.K. for the first 5 years and fill in the residency pages of the return as well as the foreign pages and property page.
I hope this helps.

Landers 25.10.2019 14:50

Re: UK tax return help
 
Already incorrect/incomplete information in the replies. Everything you need to know about UK taxation is available very easily online.

Cherub 25.10.2019 16:29

Re: UK tax return help
 
I let a flat out in the UK and the estate agent told us to fill in tax forms to say we are overseas landlords domiciled in Switzerland so we wouldn't have to pay UK tax on the income. The flat and expenses, also the house we own for ourselves in Scotland and the mortgage details are declared on our tax return here. We both stopped paying UK tax last year as we closed down the company we had in Scotland after my OHs job here became permanent. We had kept it running in the background in case his contract ended and we went home as it could easily be resurrected.

eairicbloodaxe 25.10.2019 17:05

Re: UK tax return help
 
Quote:

Originally Posted by Landers (Post 3113636)
Already incorrect/incomplete information in the replies. Everything you need to know about UK taxation is available very easily online and is extremely confusing.

Fixed that for you.

There are very few accountants who understand the ramifications of a complicated situation. If you can find one, you will pay a pretty penny.

I have been trying for 4 years and get different answers each time. Even HMRC do not know how to apply the rules correctly. I'm now at the point when I am not even sure there IS a correct.

Regards


Ian

Landers 25.10.2019 17:46

Re: UK tax return help
 
Quote:

Originally Posted by Cherub (Post 3113689)
I let a flat out in the UK and the estate agent told us to fill in tax forms to say we are overseas landlords domiciled in Switzerland so we wouldn't have to pay UK tax on the income.


It's not non-residency that allows you not to pay tax. It's a lack of tax liability in the UK due to UK tax rules (such as a personal allowance exceeding UK income) that allows you not to pay tax in advance on UK property income. If you ever become liable to fill a tax return in the UK, then you'd have to also list your UK property income and be taxed on it if necessary.



In general, if you don't and don't expect to have any UK tax liability, you don't need to file any tax returns.

muze7 25.10.2019 17:48

Re: UK tax return help
 
Quote:

There are very few accountants who understand the ramifications of a complicated situation. If you can find one, you will pay a pretty penny.

I have been trying for 4 years and get different answers each time. Even HMRC do not know how to apply the rules correctly. I'm now at the point when I am not even sure there IS a correct.
Yes, the previous poster is correct. The best you can do is get professional advice, plus enter in the More information box what you have done and why. Like if enter the box for foreign tax relief (not applicable here, but an example), enter in the info box that you are using relief under the DTA blabla. So that HMRC can at least check you have followed an internally consistent approach.

You can double check by calling HMRC. If your own research, your specialist, and HMRC agree, then you are in luck.;)

Landers is also right. You owe tax on income earned from the UK, wherever you are in the world, unless exempt under a double taxation treaty or if under the personal allowance (12,500 this year up to 5th April 2020).

Cherub 25.10.2019 17:53

Re: UK tax return help
 
We found a Treuhand in Solothurn who is really good, but this year husband's employers got it done as a free service. However, it's was a global accountancy firm and would be too expensive as a paid for service so next year it'll be the guy in Solothurn again.

Gov't Departments in the UK are useless, when we were self employed in our LLP they managed to mess up the NI payments we made and now OH has a dispute over a particular year they claim was not fully paid up.

With the Pension Service, I asked for a statement of what my state pension was likely to be on retirement and I got 2 letters sent to me with different amounts, one says I was contracted out of SERPS and the other says I wasn't :confused:

HIAO 25.10.2019 18:00

Re: UK tax return help
 
Quote:

Originally Posted by Cherub (Post 3113689)
I let a flat out in the UK and the estate agent told us to fill in tax forms to say we are overseas landlords domiciled in Switzerland so we wouldn't have to pay UK tax on the income.

Regrettably, rental income from letting out property in the UK is not exempt from income tax, even for non-resident landlords.

The letting agent may have been referring to a form called NRL1. This allows the non-UK resident landlord to apply to have rental income paid, without UK tax being deducted first. Without an approved NRL1, the letting agent (or tenant) is obliged to deduct income tax and remit this to the HMRC:

If HMRC approves the NRL1 application, one can complete one's UK self-assessment tax return, reporting the rental income, taking advantage of any personal allowances, and allowable deductions, as normal.

The UK tax return deadline is 31 January, if done online. Or, 31 October for non-UK residents who submit a paper version.

Landers 25.10.2019 18:04

Re: UK tax return help
 
Quote:

Originally Posted by fatmanfilms (Post 3097828)
UK domicile is very difficult to shake off. It's nothing to do with where you live.

Income from UK Property is taxable in the UK, you currently get a UK tax allowance against that income. Investment income will be taxable in CH


Yes I would guess the OP means "tax residency" but maybe not. If this is a simple case of a Brit moving to CH for full-time work (and living here) then they'll be non-res from the moment they move. That would mean, as you say, UK property income is liable to UK tax (i.e. it needs to be declared) and other income such as bank interest is liable to CH tax and the OP would need to claim double taxation tax relief on this income in the UK return in order not to also pay any UK tax if any were to be due.

Landers 25.10.2019 18:17

Re: UK tax return help
 
Quote:

Originally Posted by HIAO (Post 3113723)
Regrettably, rental income from letting out property in the UK is not exempt from income tax, even for non-resident landlords.

The letting agent may have been referring to a form called NRL1. This allows the non-UK resident landlord to apply to have rental income paid, without UK tax being deducted first. Without an approved NRL1, the letting agent (or tenant) is obliged to deduct income tax and remit this to the HMRC:

If HMRC approves the NRL1 application, one can complete one's UK self-assessment tax return, reporting the rental income, taking advantage of any personal allowances, and allowable deductions, as normal.


One can, but generally one doesn't because approval of NRL1 is based upon the expectation that no tax is due.

HIAO 25.10.2019 18:52

Re: UK tax return help
 
Quote:

Originally Posted by Landers (Post 3113730)
One can, but generally one doesn't because approval of NRL1 is based upon the expectation that no tax is due.

That's different to my understanding. Can you share a HRMC link to support that assertion?

I've submitted NRL1's for each UK property I hold. The process was straightforward and the approval wasn't contingent on any expectation that tax might due.

Landers 25.10.2019 19:29

Re: UK tax return help
 
Quote:

Originally Posted by HIAO (Post 3113738)
That's different to my understanding. Can you share a HRMC link to support that assertion?

I've submitted NRL1's for each UK property I hold. The process was straightforward and the approval wasn't contingent on any expectation that tax might due.


Yes you're right "..or tax affairs are up-to-date". I read from your message that one *must* declare income once NRL1 is approved. I'd say Most people having moved away use it to avoid the UK tax administration.


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