Overseas Savings Interest Income & UK Personal Allowance
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KingKenny
Posts: 242 Forumite
in Cutting tax
Hi all.
A family member has a problem; she lived and worked in Australia for a number of years, during that time she built up some savings, not a large pot but enough to receive some interest off of. She is now living back in the UK for now; she has dual UK and Australian citizenship. She no longer works here in the UK and what income she does receive in total on her worldwide income (UK & Australia) is less than her total UK personal tax allowance.
She pays a 10% non Australian resident tax in Australia on any savings interest received from her capital.
Does she have to declare to HMRC her savings interest income received in Australia, even though in total combined with her total UK income, her worldwide income is less than her UK personal tax allowance?
Does she need to file a tax return to the UK HMRC even though there is nothing owing?
Cheers.
A family member has a problem; she lived and worked in Australia for a number of years, during that time she built up some savings, not a large pot but enough to receive some interest off of. She is now living back in the UK for now; she has dual UK and Australian citizenship. She no longer works here in the UK and what income she does receive in total on her worldwide income (UK & Australia) is less than her total UK personal tax allowance.
She pays a 10% non Australian resident tax in Australia on any savings interest received from her capital.
Does she have to declare to HMRC her savings interest income received in Australia, even though in total combined with her total UK income, her worldwide income is less than her UK personal tax allowance?
Does she need to file a tax return to the UK HMRC even though there is nothing owing?
Cheers.
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Comments
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Assuming they are not Non Domicile, then they will need to declare the foreign income in the UK. That will unfortunately mean submitting a Self Assessment tax return.Hi all.
A family member has a problem; she lived and worked in Australia for a number of years, during that time she built up some savings, not a large pot but enough to receive some interest off of. She is now living back in the UK for now; she has dual UK and Australian citizenship. She no longer works here in the UK and what income she does receive in total on her worldwide income (UK & Australia) is less than her total UK personal tax allowance.
She pays a 10% non Australian resident tax in Australia on any savings interest received from her capital.
Does she have to declare to HMRC her savings interest income received in Australia, even though in total combined with her total UK income, her worldwide income is less than her UK personal tax allowance?
Does she need to file a tax return to the UK HMRC even though there is nothing owing?
Cheers.
Can you advise when they returned to the UK?
Also could you give an estimate of how much the Interest is?
You say they are in the UK for now. Are they only visiting the UK for a short period?[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
[/SIZE]0 -
Assuming they are not Non Domicile, then they will need to declare the foreign income in the UK. That will unfortunately mean submitting a Self Assessment tax return.
Can you advise when they returned to the UK?
Also could you give an estimate of how much the Interest is?
You say they are in the UK for now. Are they only visiting the UK for a short period?
Hey dori2o, thank you very much for the reply, very much appreciated.
In reply to your questions.
She was born in the UK, the UK is her permanent home for now; maybe for good, but much dependent on her deteriorating health.
She has never submitted a Self Assessment tax return in her life, and it sounds pretty scary stuff, but I have created an online HMRC portal which she can log into now, can she submit a Self Assessment tax return within this HMRC portal all online?
I ask because if she needs to do one she will need to do a Self Assessment tax return for the previous tax year also 2016/2017, but she was only a UK tax resident for six months in the 2016/2017 tax year.
Will she be in trouble for not submitting a Self Assessment tax return for the 2016/2017 tax year? She will owe no tax, that I am sure..
She returned to the UK on the 1st October 2016, but did not submit a Self Assessment tax return for the 2016/2017 tax year.
October 1st 2016 to April 5th 2017 she received $2010.00 in interest, in Australian dollars from her Australian account.
April 6th 2017 to April 5th 2018 she received $3790.00 in interest, in Australian dollars from her Australian account.
She is living here in the UK for the foreseeable future..
Thanks for any help.
PS.
Just seen this.
https://www.gov.uk/self-assessment-tax-returns/corrections
There’s a different process if you need to report foreign income.
https://www.gov.uk/undeclared-income0 -
https://www.tax.service.gov.uk/shortforms/form/SA1
I'm getting taxable foreign income of £300 or more.
This does not look good for her.
She will need to submit a Self Assessment tax return for 16/17 and 17/18.
Looks like she will be fined 1300 pounds for late submission of the 16/17 tax year...
Might need to call HMRC maybe. Will they talk to me on her behalf.0 -
She needs to register for Self Assessment. This can be done online. When this has been done she will be able to file tax returns online. The portal you have created will not have the Self Assessment option to file a tax return unless you set it up whilst actually registering to start to file a tax return.Hey dori2o, thank you very much for the reply, very much appreciated.
In reply to your questions.
She was born in the UK, the UK is her permanent home for now; maybe for good, but much dependent on her deteriorating health.
She has never submitted a Self Assessment tax return in her life, and it sounds pretty scary stuff, but I have created an online HMRC portal which she can log into now, can she submit a Self Assessment tax return within this HMRC portal all online?
I ask because if she needs to do one she will need to do a Self Assessment tax return for the previous tax year also 2016/2017, but she was only a UK tax resident for six months in the 2016/2017 tax year.
Will she be in trouble for not submitting a Self Assessment tax return for the 2016/2017 tax year? She will owe no tax, that I am sure..
She returned to the UK on the 1st October 2016, but did not submit a Self Assessment tax return for the 2016/2017 tax year.
October 1st 2016 to April 5th 2017 she received $2010.00 in interest, in Australian dollars from her Australian account.
April 6th 2017 to April 5th 2018 she received $3790.00 in interest, in Australian dollars from her Australian account.
She is living here in the UK for the foreseeable future..
Thanks for any help.
PS.
Just seen this.
https://www.gov.uk/self-assessment-tax-returns/corrections
There’s a different process if you need to report foreign income.
https://www.gov.uk/undeclared-income
You should visit https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-not-self-employed, if you have not already done so.
If this is how you registered then the ball is rolling, and she will receive the necessary details in the post soon. If not then visit the web page above and register.
She only has to file a tax return if she was resident in the UK for 16/17.
To be UK resident she needs to have been in the UK for at least 183 days. If the dates you have given are correct then she will be resident in 2016/17.
01/10/16 to 04/05/17 (inclusive) is 187 days and so she meets the criteria.
In theory she could be subject to Failure to notify penalties for notifying HMRC more than 6 months after the end of a tax year in which the additional taxable income arose. However, these penalties are charged as a %age of tax lost. As you say there is no tax to pay then this will not apply.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
[/SIZE]0 -
https://www.tax.service.gov.uk/shortforms/form/SA1
I'm getting taxable foreign income of £300 or more.
This does not look good for her.
She will need to submit a Self Assessment tax return for 16/17 and 17/18.
Looks like she will be fined 1300 pounds for late submission of the 16/17 tax year...
Might need to call HMRC maybe. Will they talk to me on her behalf.
Slow down and read my last post.
The £1300 is the maximum penalty for filing a tax return more than 12 months after it's due date.
There will not be a due date until the tax return is actually issued.
She will get 3 months from the date of first issue to fill in the 16/17 return either on paper or online, and 3 months from date of first issue to fill in a paper version of the 17/18 return, or until 31/01/19 to complete the return for 17/18 online.
They will talk to you about specifics of they receive written authorisation to do so. Or for a one off call, can accept verbal authority.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
[/SIZE]0 -
She needs to register for Self Assessment. This can be done online. When this has been done she will be able to file tax returns online. The portal you have created will not have the Self Assessment option to file a tax return unless you set it up whilst actually registering to start to file a tax return.
You should visit www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-not-self-employed, if you have not already done so.
If this is how you registered then the ball is rolling, and she will receive the necessary details in the post soon. If not then visit the web page above and register.
She only has to file a tax return if she was resident in the UK for 16/17.
To be UK resident she needs to have been in the UK for at least 183 days. If the dates you have given are correct then she will be resident in 2016/17.
01/10/16 to 04/05/17 (inclusive) is 187 days and so she meets the criteria.
In theory she could be subject to Failure to notify penalties for notifying HMRC more than 6 months after the end of a tax year in which the additional taxable income arose. However, these penalties are charged as a %age of tax lost. As you say there is no tax to pay then this will not apply.
dori2o. Many thanks.
Okay I will get her registered for self assessment.
I guess she will have to do one every year from here on in, unless she spends all her Australian dollars. Might be an idea to get her to bring all the money back to the UK, can't see her going back again.
Thanks again. Your a star.0 -
Slow down and read my last post.
The £1300 is the maximum penalty for filing a tax return more than 12 months after it's due date.
There will not be a due date until the tax return is actually issued.
She will get 3 months from the date of first issue to fill in the 16/17 return either on paper or online, and 3 months from date of first issue to fill in a paper version of the 17/18 return, or until 31/01/19 to complete the return for 17/18 online.
They will talk to you about specifics of they receive written authorisation to do so. Or for a one off call, can accept verbal authority.
Yep thanks, just panicking..I don't like to upset the tax man, not a good idea.
Just pulled her travel tickets/times online. She arrived back in the UK on the 17th October 2016, she lived in Australia for tax year the 6th April 2015 to the 16th October 2016. So in essence spent 171 days in the UK as a resident in the 2016/2017 tax year. So touch wood no need to submit a self assessment form.
So just need to get the ball rolling for 2017/2018 tax year asap, not all bad after all hey.
Thanks.0 -
You are automatically classed as a UK resident if either:
You spent 183 or more days in the UK in any given tax yearyear
She spent 171 days in the UK
Your only home is in the UK, which you must have owned, rented or lived in for at least 91 days in total, and you spent at least 30 days there in any given tax year.
She rented a house in the UK for 171 days. Will this make her a resident.
Cheers0 -
Given the RTC deadline this month; I would quickly use the worldwide disclosure facility here.0
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Cook_County wrote: »Given the RTC deadline this month; I would quickly use the worldwide disclosure facility here.
How to make a notification and disclosure to HMRC
You must tell HMRC of your intention to make a disclosure. Do this as soon as you become aware that you owe tax on undeclared offshore income or gains.
She owes no tax so there is no disclosure to make.
Does she still need to file a self assessment form.0
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