Do I actually need to fill in a tax return?

rs232

I have just found a job within the EU so moving there at the end of the month for an extensive period. I will keep my house in the UK together with my financial stuff including investments.



My first instinct was to find an accountant to fill in my tax return yearly while I'm away... but then I thought to myself, do I really need to fill in a tax return?


- I will have no "real income" to be taxed in the UK (it will be taxed at source in the EU country I'm going)
- I will have some return from investments but either within ISAs, pre-taxed at surce and everything else is expected to be way below the 10K/year
- I will have some income from renting out rooms in my house but unlikely to be above the 7500 tax free cap.
- I'm a director of a dormant LTD so no income there either


....


Can I just "not fill in a tax return" this year or do I have to do so regardless? Or else?


Thanks!

TheCyclingProgrammer

You will need to contact HMRC and tell them you no longer need to do one or they will keep sending you a notice to file each year. If they send you a notice to file a return and do not do it you will get fined.

BoGoF

The £7500 'tax free cap' will not apply to you.

DigForVictory

+1 for talk to HMRC.
A phone call (or a letter) now could save you a lot of trips & emails and general nervous wear & tear later!

Very best of luck with job & tenants.

rs232

BoGoF wrote: »

The £7500 'tax free cap' will not apply to you.

Why would this not apply to me?



Thanks

BoGoF

You will be a non resident landlord - you can't use the rent a room scheme.

rs232

BoGoF wrote: »

You will be a non resident landlord - you can't use the rent a room scheme.

I guess I would still be registered as domiciled in the UK... but if not that's a very interesting point as I suppose there are many "renting regulations" I would have to comply with right? Hum....


Also if I am to be a a non resident landlord then the 7500 is pure income I suppose and perhaps that makes the tax return relevant again?

BoGoF

rs232 wrote: »

I guess I would still be registered as domiciled in the UK... but if not that's a very interesting point as I suppose there are many "renting regulations" I would have to comply with right? Hum....


Also if I am to be a a non resident landlord then the 7500 is pure income I suppose and perhaps that makes the tax return relevant again?

Domicile and residence are totally different things but yes, plenty red tape for you renting regulation wise.

You will need to register as a non resident landlord with HMRC who may want a Tax Return completed. If you don't register then any letting agent (or tenant) would be required to withold tax.

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

Cook_County

You will also need to file a tax return in your country of employment and report UK rental income and income in your ISA. As no-one knows about Brexit you might end up paying NIC in two countries. Is your employer paying for advice or tax protecting you?

sheramber

have you checked out the requirements for being a landlord?

Have a read of this thread
https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants

00ec25

rs232 wrote: »

- I will have some income from renting out rooms in my house but unlikely to be above the 7500 tax free cap.
Thanks!

in what way, shape, or form will your living abroad entitle you to claim the LODGER rent a room allowance for someone living in your only/main home where you spend most of your time - ie NOT your property in the UK!

if you are that misinformed you should use an accountant

read up on the Non resident Landlord scheme as that is what will apply to you

EDIT

I see the above flaw has already been spotted by others...