Living in Jersey, some UK earnings

looster

Hi my husband is interviewing for a job in Jersey. If we moved there, it would be for a few years. I might be able to work there but if not, would keep doing some freelance lecturing work here in the UK - up to 18 days a year or so. We would also have our house here rented out. We would not be in the UK more than a couple of months a year at most.

On his job, we would be liable to tax in Jersey. But my query is about UK tax liability for earnings here

Rental income - by the time we have offset interest payments, we would probably not make any money, probably a loss. But I think we would have to each file UK tax return in respect of the income/expenses. Also, although I would be living in Jersey, my lecturing work would be paid here I guess. So I would then pay UK income tax on my earnings here?

Sorry if this is all a bit confused and not sure this is the right board.
Thanks
L

looster

Have been reading IR 20 and think that we would qualify to split the tax year in which we leave the UK to become non-resident.

I also think I understand from it that my UK earnings for lecturing would be liable to UK tax but that I would retain my personal allowances to offset against the income. I would be working as a freelancer so presumably could I set up off my travel costs and expenses for getting to place of work?

I understand that as non-resident landlords, our agents would deduct basic rate tax from the rent received less allowable expenses. If we know that our allowable expenses would exceed the rent, would we be able to apply to HMRC to have this waived? If so, how would we go about doing that? If we couldn't get the obligation on the agent to deduct waived, I presume any tax deducted could be offset against any liability owing/reclaimed if overpaid upon submission of a tax return?

So complicated!!

Cook_County

You continue to file returns and pay UK tax on UK earnings.

You file forms NRL1 to avoid the withholding.

You will need to review Jersey tax to see if they give credit for UK tax.

looster

Thanks for that - I think the employers as part of relocation package will give us the Jersey tax advice
many thanks