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bigduckontax
bigduckontax, Accountant
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I left uk in 2002 and have not resided or worked there

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I left uk in 2002 and have not resided or worked there since, I have not made a tax return in this time. I did receive a small amount of rental on a property during this time but very little once repairs, non payments, agents ,lawyers, bailiff fees certainly nowhere near the personal allowance.
I have just cashed in a private pension with Pru and they have after the 25% free taxed me very highly on the rest and have sent a p45 .
I have looked at the Government tax site to try and work out what form i need to fill out could you assist /advise on this please.
Thanks
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Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello Steve, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Firstly, when you left the UK in 2002 did you send a Form P85 to the Inland Revenue as it was then? If you did not then you should do so immediately, but now, of course, to HMRC. On receipt that Department will classify you as non resident. Once so classified you can spend up o 91 days in the UK in any one tax year without breaching that status.

Now for my questions; how old are you please? Have you been diagnosed with a terminal illness?

Customer: replied 1 year ago.
Hi Keith
I am 57 years old and i do not have a terminal illness the main reason i cashed in the pension is to consolidate my bits and pieces from the uk as i cannot add to the pension scheme as i am overseas. There was some communication from tax office after i left (we thought we had done all we needed to all tax earnings etc declared) in the end my mother was able to go to the office and fill in the missing info that they wanted . whether the form was a P85 or not i do not know could i find out by going on line ( most stuff on line seems to be for the last few years only.?
Expert:  bigduckontax replied 1 year ago.

Well, it it is available now and you will find dealing with HMRC as an ex pat much easier if you use the P85 procedure. It would not matter if you duplicate the submission.

Even if you were non resident for tax purposes the rental of your UK property would still be liable to UK Income Tax, although as a citizen of the EEA you would be entitled to a personal allowance which you say would leave you with no tax to pay. However, you should have been making tax returns of this income each year unless the taxman told you not to bother which might happen as processing returns which yield no revenue is an exercise in financial futility. However, for the tax year in which you cashed in your pension, the man from the Pru would tax 75% of the lump sum at your marginal rate of taxation. To recover some of this over payment, if any, it will be necessary to make a self assessment tax return for the tax year in which you received your pension pot. If this was the current year then it is possible that your tax office will make some recompense part way through the tax year.

I do hope that I have shown you a way forward in this matter. You have to be over 55 or possibly have a terminal condition if under that age to take advantage of pension liberation.

Customer: replied 1 year ago.
Ok Keith
Thanks for your advice i have already printed the P85 form so i will have a go at that , To be honest i have probably made a loss on the rental this last year as councils now tell tenants not to move out voluntarily. So as i said solicitors, bailiffs, no rent for the last seven months while all this goes on. cuts into any profits quite a bit so i am trying to sell now.
So just to make sure i understand you . Do i just fill in this P85 form and and a self assessment form and wait or is there some sort of claim form i should look at . Also there are other bits and pieces of pension, life policy's etc to come when they finally let me have my money back its taken 5 months for just the Pru so far. (Should have put it in a tin under the bed as grandad told me to.)
Expert:  bigduckontax replied 1 year ago.

Well a P85 will do no harm and a self assessment form will clarify the position for HMRC for the relevant year. Alternatively you could use a Form R85 to recover the overpaid tax, but a self assessment form will do just as well.

Please be so kind as to rate me before you leave the Just Answer site, Steve.

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Expert:  bigduckontax replied 1 year ago.

Thank you for your excellent support.

Expert:  bigduckontax replied 1 year ago.

Correction to my last post. In line two I should have said R40 not a R85!

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