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Old 05.03.2021, 19:03
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UK rental income and Tax.

Hi
I hope to rent out a flat in Exeter, UK and was wondering if I have to pay tax at source, in the UK on the rental income.
I am a UK citizen and live and work here in Switzerland.
does anyone have any similar experiences.
thanks
Mike
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  #2  
Old 02.11.2021, 20:58
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Re: UK rental income and Tax.

Declare rental income on your uk self assessment and dont mention it in Switzerland. Thats it
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Old 02.11.2021, 21:02
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Re: UK rental income and Tax.

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Declare rental income on your uk self assessment and dont mention it in Switzerland. Thats it
Potentially risky with Open Banking transfer of information
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Old 03.11.2021, 20:34
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Re: UK rental income and Tax.

I agree with the above - submit your HMRC assessments.

For Switzerland (at least below for ZH), if you are not asked to submit your tax assessment here then nothing to worry about.
If you already doing your tax assessment here:
1. You should've already registered your overseas property and get this included as 'Eigenmietwert' (not sure what it is called in French/Italian) in your amount to determine your tax %.
2.You arent going to 'pay' tax twice - if you already registered it with tax authorities you will just substitute 'Eigenmietwert' with actual Rental Income.
3. If you doing your annual assessments and havent told tax authorities about your property - seek professional advice on what is the best way to come clean and disclose the info.
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Old 03.11.2021, 23:59
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Re: UK rental income and Tax.

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Declare rental income on your uk self assessment and dont mention it in Switzerland. Thats it
It is not. You need to declare the income it Switzerland as it is used to determine Swiss tax rates at a minimum.
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Old 04.11.2021, 00:10
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Re: UK rental income and Tax.

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Hi
I hope to rent out a flat in Exeter, UK and was wondering if I have to pay tax at source, in the UK on the rental income.
I am a UK citizen and live and work here in Switzerland.
does anyone have any similar experiences.
thanks
Mike
I rent out my former UK home and declare the income in both Switzerland and the UK. The Swiss declaration is really simple. It's dealing with HMRC that's the real pain. The majority of their staff who I've had to speak to about this, don't appear to be familiar with their own systems. Luckily, the rental agency my house is let through, provide all the documents and my accountant brother-in-law does the rest.

https://www.gov.uk/tax-uk-income-live-abroad/rent

Please be aware that as a non-UK resident, you can't use the online self assessment system to declare the rental income. The forms have to be posted out to you, unless you know someone in the UK (accountant, etc.) who is authorised to submit these on your behalf.
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Old 04.11.2021, 07:51
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Re: UK rental income and Tax.

I have been using TaxCalc, I am sure there are others, to submit UK Tax return with rental property. Very easy and no post required
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Old 04.11.2021, 07:55
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Re: UK rental income and Tax.

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Please be aware that as a non-UK resident, you can't use the online self assessment system to declare the rental income. The forms have to be posted out to you, unless you know someone in the UK (accountant, etc.) who is authorised to submit these on your behalf.
Or you can use HMRC-approved self-assessment software that will submit the forms online for you. You can't use the HMRC site but you can use one of software list in the link below. (I use ABC).

https://www.gov.uk/government/public...ware-suppliers
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Old 04.11.2021, 11:28
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Re: UK rental income and Tax.

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Hi
I hope to rent out a flat in Exeter, UK and was wondering if I have to pay tax at source, in the UK on the rental income.
I am a UK citizen and live and work here in Switzerland.
does anyone have any similar experiences.
thanks
Mike
The question is about tax at source. Usually, a letting agent or tenant deducts tax when they pay rent to a UK landlord who lives outside the UK.

You can request an exception, here is the relevant information and application form:

https://www.gov.uk/government/public...dividuals-nrl1

Thereafter HMRC will ask you to fill in a UK Self Assessment tax return. Whether you pay tax or not depends on the rent. You have personal allowances, the first £12,570 of rental profits is tax free.
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Old 04.11.2021, 11:51
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Re: UK rental income and Tax.

I declare my rental income to both the UK and Swiss tax authorities. As it is my only UK income it puts me below the minimal income tax bracket so I don’t pay anything there. (In fact, for many reasons my UK taxable income was -£60 this year, but normally it is around 3k, and the allowance in over 10k).
The Swiss take it into consideration my house anyway (minus what is left of my mortgage) as wealth, so they know about it, but as I bought it for £63K it really does not increase my tax here a lot either.
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Old 04.11.2021, 14:22
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Re: UK rental income and Tax.

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For Switzerland (at least below for ZH), if you are not asked to submit your tax assessment here then nothing to worry about.
Maybe: if you are not asked to submit your tax assessment it still might be mandatory to do so proactively if your total wealth is > X or your foreign income not subject to Swiss withholding taxes is > Y.

Owning a home abroad and renting it increases significantly the chances of falling in one of two situations
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Old 06.11.2021, 08:57
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Re: UK rental income and Tax.

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Please be aware that as a non-UK resident, you can't use the online self assessment system to declare the rental income. The forms have to be posted out to you, unless you know someone in the UK (accountant, etc.) who is authorised to submit these on your behalf.
Or use TaxCalc or similar UK tax software, which also pushes the deadline back to end January, it costs abot £25 per year.
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Old 06.11.2021, 09:03
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Re: UK rental income and Tax.

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Declare rental income on your uk self assessment and dont mention it in Switzerland. Thats it
Daft advice. Neither the income nor the wealth are directly taxed in Switzerland, just used to set you tax rate based on global income and assets. You will get a calculation showing the split into swiss and foreing assets and income.

You also have over 12k personal allowances in the UK. If your only UK income is from a jointly owned property that's 25k of *net* income after letting fees, landlords costs and maintenance etc. so probably 30k of rent.
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