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UK tax returns - do you need to keep up with them?

Guest Ryan T. Lion

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Guest Ryan T. Lion

We don't earn any taxable income in the UK, our rent isn't taxed because we notified HMRC we were coming out here (form NRL1)


I've been forwarded a request for a tax self assessment by someone in the UK for the tax year 2012/13


I'm not sure if we received one for 2011/12 - but the 2012/13 one says if we don't send in a self assessment they start charging you £10 per day for every day it's late past 3 months!!!!!! That's £2750 per year !! !! !! !!


Do you need to do a UK tax return if you're not there earning anything there????


​Understandably I'm really panicking now because we're on a 457 and heading home soon - don't want to arrive back to a bill like THAT! :shocked:

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Guest Ryan T. Lion

aaaaaarghhhh!!!!! Bloody UK Bank Holidays - will have to wait until tomorrow night to call them


If anyone wants the number for future reference dial 0011441619319070


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We also have a rental income in the UK, and we have just completed a online tax return for 2012/13.


The way I understand it that the rent from the property is still classed as income.

we also filled the NRL1 form prior to leaving which I believe entitles you to a tax allowance in the UK even though you are not residing in the UK.


I declared half the rental income on my tax return, hubby declared the other half (due to being joint owners) neither of us pay tax on this as its under our personnel allowance :)


I am sure we have done it right as the tax office in the UK seem to have accepted it!

This is how we understood it to work when we spoke to to the tax office before we left UK.

Not looking forward to the Oz tax return when we have to declare our UK income as well as Aussie income, it all sounds rather complicated so will be needing an accountant to ensure we get it right.


This is our first year so is a bit of a learning curve for us

good luck

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Hi Ryan


deli&paul is right, if you have assessable UK income you will need to declare it in the UK.


You have completed the NRL1 form to have the rent paid without tax deducted at source however it does not mean that it is tax-free.


If this is your only form of UK income then it may be that you will not have to pay tax in any event given any allowable expenses to deduct along with the personal allowance but it still needs to be completed.


Permanent residents of Australia would then declare the income in Australia for assessment also, if tax had been paid in the UK a tax credit can be claimed.


However for temporary residents generally only income in Australia has to be declared therefore UK rental income would not have to be declared.






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Guest Ryan T. Lion

Thanks everyone. Yep we've been asked to complete a 2012/13 tax return - no worries there - but I'm anxious that my parents never sent on any mail requesting a tax return for 2011/12 this time last year. Penalties for not completing a tax return on time are very harsh.


I checked the HMRC website and it says as a non-resident landlord you'll need to do a tax return if the rent you're paid is over your personal allowance. My wife and I (joint owners/landlords) each get half the rent which is waaaaaay below the personal allowance.


I am not worried about owing tax - we won't owe anything. It is the £100 late fee + £10/day for each day past 3 months late for the 2011/12 self assessment that I'm worried about!


I'll be speaking to them in 33 minutes - wish me luck.


tax return paragraph.JPG

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Guest Ryan T. Lion

Yeah, so-so thanks mate.


We have been charged some penalties for not getting our 2011/12 tax return in - they said I can apply to have those penalties removed if there was a good reason.


I now have to wait while a passcode comes in the post to activate online assessments and then pay for the UK equivalent of eTax software (??!!!!) and get it done. The passcode takes 7 days and the penalties increase at £20/day in the meantime. What a harsh system.


All this is to establish what they've known from day 1: our rental income is below the personal allowance anyway. No tax.


What really makes me ache is that we've done everything above board in renting our UK home. We told our mortgage company and got hit for an increased rate, we used a registered letting agent (who has been useless) and we completed form NRL1 which we assumed left our tax affairs in order for when we left. So our agency said, anyway.


Loads of people just rent without telling their mortgage company, make an undeclared killing tax-free, and never hear anything from HMRC.


We do everything properly - but miss a bit of mail getting forwarded - and we're looking at penalties/charges.


Just as tax season is here and we'll probably find out that @mazon, St@rbucks and Vod@fone probably paid the same tax as a teenager doing Saturdays at McDonald's. Allegedly etc.


It stinks!

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