Thank you for your question..
Please clarify for me.. have you registered for VAT?
Do you file a tax return to UK authorities at the moment?
Thank you for your reply.
I am drafting my answer and will respond to you shortly.
Thank you for your patience
Personal tax on rental income
Rental income is subject to UK income tax. As you do notfile a tax return in the UK, the rental income you get will have taxalready deducted by your letting agent. You will have to register with HMRC forSelf Assessment and file a tax return in the UK to report income from UK property. Any tax deducted at source would be taken into account in calculating your tax payable to UK tax authorities.
More information on how rental income is taxed is covered here
Even though you live abroad, being a British Citizen, you will get a personal allowance of tax free UK income each year (current tax year£11,000) against income arising in the UK.
This most likely will cover the rental income and therefore any tax deducted by the letting agent would become repayable to you upon submission of your self assessment tax return.
More information on personal allowance and tax on your UK income if you live abroad is covered here
As far as filing of tax return is concerned, it is your responsibility to file it. Parkdean would be able to file it if you appoint thecompany as your agent to deal with your tax affairs. I very much doubt that they offer this service. You could consider appointing an accountant in practise to act as your agent and file your tax return in the UK.
Accounting for VAT
As your taxable turnover is unlikely to exceed the threshold for VAT registration, you don’t have to worry about it. Moreover, rental income as a normal rule is exempt from VAT.
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Jane, thank you for your reply.
You will be able to ask any follow up question related to the main question even after you have rated my answer.
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Jane, thank you for your question.
I have down loaded some of the forms and need clarification:
[Q] Do I have to register for Self Assessment by 5 October 2016, to cover the tax year 6 April 2016 to 5 April 2017?
[A] Register by 5 October following the end of the tax year you need to send a tax return for. The tax year is from 6 April to 5 April the following year. In your case register by 5 Oct 2017.
[Q] Is the above purely a registration? Would the actual self assessment be filed during April 2017?
[A] This is like opening an account so that you can be provided with an account number (in HMRC terms given a Unique Tax Reference number). The self assessment tax return would be for the tax year ending 5 Apr 2017 and deadline for filing it
31 Oct 2017 if filing a paper tax return
31 Jan 2018 if filing it online.