UK Tax Return

[Guest Damien]

Hello All from the chilly South East,

 

Has anyone been asked to complete a UK tax return for 2010/11? I've had a letter telling me I have to complete one even though I've been resident here since March 2010. My only income from the UK is from renting my house out, this covers the mortgage but is not exactly making me rich.

 

I've looked at the forms and on the HMRC website. Apparently as I'm not a resident in the UK I can't fill in the return online unless using commercial software so it looks like I've got to do a paper return. My dilemma is I don't want to pay tax on my rental income there and get taxed again on it over here. Also the UK return asks about foreign income, will they then tax me on my income here that I've paid tax on already?

 

Anyone got any advice or been in the same situation?

 

Cheers,

 

Damo

[Guest guest4829]

Hello All from the chilly South East,

 

Has anyone been asked to complete a UK tax return for 2010/11? I've had a letter telling me I have to complete one even though I've been resident here since March 2010. My only income from the UK is from renting my house out, this covers the mortgage but is not exactly making me rich.

 

I've looked at the forms and on the HMRC website. Apparently as I'm not a resident in the UK I can't fill in the return online unless using commercial software so it looks like I've got to do a paper return. My dilemma is I don't want to pay tax on my rental income there and get taxed again on it over here. Also the UK return asks about foreign income, will they then tax me on my income here that I've paid tax on already?

 

Anyone got any advice or been in the same situation?

 

Cheers,

 

Damo

 

The good news is that you although you will have to fill out a UK tax return you won't get taxed twice as there is an agreement between the UK and Aus preventing that. Hopefully you have completed an NRL1 form re the letting of your property otherwise you may get into a bit of bother.

 

As I earn income both in the UK and Aus I have to fill out returns in both countries but I got advice from Go Matilda as they are qualified in both countries and specialise in tax issues for immigrants.

 

My advice would be to contact someone like them in your first year to keep you straight and then presuming it's fairly straight forward you should be able to sort it yourself from then on.

 

Daniel

[Guest Damien]

Thanks mate.

 

Whats an NRL1? The mortgage company are aware that the house is being rented out.

 

Damo

[Guest guest4829]

Thanks mate.

 

Whats an NRL1? The mortgage company are aware that the house is being rented out.

 

Damo

 

Nothing to do with your lender, it's the form notifying HMRC you are renting your house out, once you fill out the form they will issue you with a number which you need to give to your tenant (or your agent) - without it they can fine you and instruct the tenant to withhold the rent. The form can be downloaded at

 

http://www.hmrc.gov.uk/nonresidents/fagnrl1_bw.shtml

 

Daniel