Forign savings & self assesment

rexmedorum

I have always understood that you need to fill in self assessment if you receive over 2.5k interest from foreign (EU) savings and therefore never filled it in, but I'm now wondering if that's correct or not.

nomunnofun

http://www.hmrc.gov.uk/taxon/foreign.htm

2.5K limit is new to me!!

Davide123

nomunnofun wrote: »

http://www.hmrc.gov.uk/taxon/foreign.htm

2.5K limit is new to me!!

£2k limit re unremitted foreign income?

If the income is less than £2k then the remittance basis applies automatically, with no uk tax due on any income not remitted

nomunnofun

Davide123 wrote: »

£2k limit re unremitted foreign income?

If the income is less than £2k then the remittance basis applies automatically, with no uk tax due on any income not remitted

Yes - I had not heard that it had increased to £2500 as suggested the op - thanks!

jamesd

rexmedorum wrote: »

I have always understood that you need to fill in self assessment if you receive over 2.5k interest from foreign (EU) savings and therefore never filled it in, but I'm now wondering if that's correct or not.

You need to complete a tax return if you receive any foreign interest income. There is no minimum. I'm required to do so for around £150 of non-bank untaxed foreign interest income, according to personal discussion with HMRC. "You must complete a tax return if you have any foreign income that's liable to UK tax."

If the foreign interest is less than £2,000 you do not need to complete the foreign page but instead include it on the relevant UK page and add a note to the tax return describing the split between domestic and foreign interest. This £2,000 is found in the notes to the tax return.

There is a £2,500 untaxed interest threshold for being required to complete a tax return but that applies to untaxed UK interest only.

I'm assuming that you're a standard UK resident and UK domiciled tax payer.

Phone the HMRC self-assessment helpline if you have any questions. They will be able to give you personal guidance for your specific situation. Though use some caution, occasionally they get things wrong. There's a form you can use to register for self-assessment. The any other reason is where you can say that it's due to foreign interest.

jamesd

nomunnofun wrote: »

http://www.hmrc.gov.uk/taxon/foreign.htm 2.5K limit is new to me!!

What 2.5k limit? That page doesn't mention one and the £2,500 threshold for completing a tax return applies to untaxed UK interest only. Do you have any references for anything else applying?

Davide123 wrote: »

£2k limit re unremitted foreign income? ... If the income is less than £2k then the remittance basis applies automatically, with no uk tax due on any income not remitted

Do you have any references for this, which directly conflicts with what HMRC has told me and others about their requirement for a tax return if there is any foreign interest income, assuming a normal UK resident and domiciled tax payer? I'd prefer it if you were right but I don't think you are.

rexmedorum

Hhm resident yes I think Domicile not sure I'm from another EU country, came here to do a degree (in 2006) and never left. Parents are still in my country of origin. (also got no intention of becoming a national)

jamesd wrote: »

You need to complete a tax return if you receive any foreign interest income. There is no minimum. I'm required to do so for around £150 of non-bank untaxed foreign interest income, according to personal discussion with HMRC. "You must complete a tax return if you have any foreign income that's liable to UK tax."

If the foreign interest is less than £2,000 you do not need to complete the foreign page but instead include it on the relevant UK page and add a note to the tax return describing the split between domestic and foreign interest. This £2,000 is found in the notes to the tax return.

There is a £2,500 untaxed interest threshold for being required to complete a tax return but that applies to untaxed UK interest only.

I'm assuming that you're a standard UK resident and UK domiciled tax payer.

Phone the HMRC self-assessment helpline if you have any questions. They will be able to give you personal guidance for your specific situation. Though use some caution, occasionally they get things wrong. There's a form you can use to register for self-assessment. The any other reason is where you can say that it's due to foreign interest.

jamesd

Best to phone the helpline to check your situation but it seems that you're resident and ordinarily resident and hence a normal UK tax payer who has to use remittance basis and file a tax return. Not so sure about your domicile but that doesn't matter when you're resident.

If it happens that you should have made tax returns in past years don't worry about that, just tell them and there won't be any large penalties - may be small ones though.

Davide123

jamesd wrote: »

What 2.5k limit? That page doesn't mention one and the £2,500 threshold for completing a tax return applies to untaxed UK interest only. Do you have any references for anything else applying?

Do you have any references for this, which directly conflicts with what HMRC has told me and others about their requirement for a tax return if there is any foreign interest income, assuming a normal UK resident and domiciled tax payer? I'd prefer it if you were right but I don't think you are.

Reference below, I was responding to the OP as this rule sounded similar to that, I don't know if it applies to you or not.

http://www.hmrc.gov.uk/manuals/rdrmmanual/RDRM32110.htm

Davide123

jamesd wrote: »

Best to phone the helpline to check your situation but it seems that you're resident and ordinarily resident and hence a normal UK tax payer who has to use remittance basis and file a tax return. Not so sure about your domicile but that doesn't matter when you're resident.

If it happens that you should have made tax returns in past years don't worry about that, just tell them and there won't be any large penalties - may be small ones though.

Being non dom means you can claim remittance basis, so this could apply

jamesd

Davide123 wrote: »

Reference below, I was responding to the OP as this rule sounded similar to that, I don't know if it applies to you or not.

http://www.hmrc.gov.uk/manuals/rdrmmanual/RDRM32110.htm

Thanks!

Rexmedorum seems to be remitting it to the UK. So I think that rexmedorum probably can't benefit, unless I'm still missing something? maybe if a non-dom and paying the fee?

But my own situation is more promising. I haven't remitted to the UK and am resident and domiciled here, so my personal situation seems to make it more possible for me to choose to use remittance basis, with the calculation in RDRM31190 saying how I have to work out whether I'm over the £2,000 threshold or not.

Just in case you're curious, this is of interest for anyone investing via the Estonian P2P lending company isePankur, who will be receiving interest from individuals. Which is why I'm trying to be fairly sure I've completely pinned it down correctly before I start going around telling people that they won't have to complete a tax return up to a certain unremitted income level.