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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Dear Sirs, I am a Turkish and UK citizen and used to work

Resolved Question:

Dear Sirs,
I am a Turkish and UK citizen and used to work and live in Hove until I moved back Turkey on November 1993. I used to have a Barclays Bank account for about 30 years.
In August 2014 when my Hove flat's mortgage was paid of Barclays terminated my bank account without any notice, Barclays still keeps my cash to be transferred in to a new account.
When I moved back Turkey in 1993, I let the flat since then to pay the mortgage and the expenses of the flat. In 2015 I tried to register HMRC online for Self Assessment tax payments. It took me sometime to get the tax reference number because the postal service in Turkey is very slow (national urgent postal service takes 2 weeks to travel between 2 governmental offices). Besides, I am a retired engineer taking care of my two elderly and sick parents in Istanbul (I take my father 3 times a week for dialyses).
At the end I managed to log in and register with HMRC Self Assessment as Arzu NurCustomer In the meantime because I did not have any UK bank account the rent had been kept by the Rental Agent that takes care of the rental and the maintenance issues of the flat. Because of that I did not have the flat's income and the expenses for some time to declare my net income since August 2014.
After some time I received £100 due from HMRC by post and I tired to pay with my Turkey registered credit card but could not succeed to pay with my credit card. Since then I am struggling with my Self Assessment and receiving penalties which is getting more and more. The last penalty assessment that I have received dated on 12 August 2016, is £1200 and I received it in Istanbul home on 9 September 2016, about a month later.
By now, I have the Rental Agent’s income and expense sheets about 2014 and 2015. However I do not know how to start with HMRC Self Assessment to assess my income tax.
Could you please help me?
ArzuCustomer
Submitted: 10 months ago.
Category: Tax
Expert:  Sam replied 10 months ago.

HI

Thanks for your question

So what help do you need ?

Have you now registered for self assessment ?

The UK rental income section is straight forward - you put in your income and the expenses - which leaves a net income on which tax is considered plus you will need to complete a residency page as you are no longer living in the UK.

However if you cannot pay the penalties and tax due - then this also needs to be something you need to sort out - and the banks dont just close bank accounts - but you say they have your money and you have a new account?

So what about the rent money you are owed? Does the managing agent still have this ? Is the managing agent deducting tax from the rents are you and a non resident landlord?

Please advsie further

Thanks

Sam

Customer: replied 10 months ago.
what help do you need ? Could I appeal the penalty? Due to bank and payment issues and receiving income and expense sheets late from the agent also very slow postal service caused late start with the self assessment, is there any way to appeal the penalty? Can you help me to write reasons as I explained above, the SA3770 Appeal form (HMRC 06/14) "Your reason for making an appeal" section? I guess I should fill the rental income section and the residency page this week.Have you now registered for self assessment ? - Yes I have registered but did not fill anything yet.The UK rental income section is straight forward - you put in your income and the expenses - which leaves a net income on which tax is considered plus you will need to complete a residency page as you are no longer living in the UK. - I should try to fill both sections asap, thnx.However if you cannot pay the penalties and tax due - then this also needs to be something you need to sort out - and the banks dont just close bank accounts - but you say they have your money and you have a new account? - Barclays' reason was I stay in Turkey, Barclays claimed that they do not deal with account owner if their residential address is in Turkey, I was shocked but could not know what to do. I would like to keep the rental income in the UK, I am trying to find a Turkish bank that allows me tp have an account in the UK .So what about the rent money you are owed? Does the managing agent still have this ? Is the managing agent deducting tax from the rents are you and a non resident landlord? - The managing agent is taking her own due and is not deducting any tax on my behalf. I am a non resident landlord.Thank you.Best regards,
ArzuCustomer
Expert:  Sam replied 10 months ago.

Hi

Thanks for your response

You can of course appeal the penalty but it will not reduced as you have no grounds on which you appeal that HMRC will accept - tax returns were due from the date that you let out the property and it was your responsibility (or for you to engage a UK accountant) to undertake this each year.

Your managing agent is not operating your rent correctly - as a non resident landlord they should be operating 20% deductions from rent unless you have applied to be part of the non resident landlord scheme (which is unlikely as you have tax returns outstanding) so you need toa sk your managing agent why they are not operating matters correctly for you but after they take their dues, where do they pay the money.

Banks will not close your account just because your address is not UK based, thousands of UK bank account holders live abroad, but its not a case of worrying about what has gone on, but how to take matters forward. and you may need to arrange a bank account that can pay from the UK as a matter of urgency - as you cannot pay HMRC without this ability to pay to and from the UK

Have a go at the self assessment - if you get stuck I can always help - but this will create an additional charge as this will be time consuming to go through every section, and we can offer a telephone service (

Expert:  Sam replied 10 months ago.

(but I am not in the UK ) so this may prove a little expensive, but let me know if you need furtehr help with this additional service

If you have all your need for now, then ot would be appreciated if you could rate me for the level of service I have provided - or click accept

Thanks

Sam

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Customer: replied 10 months ago.
Hi Sam,It sounds I need a UK accountant to solve my tax issue, could you advise me a UK accountant (not an expensive one) please.In the meantime I should ask the managing agent to pay the tax penalty in the UK with the accumulated rents, if possible.I thank your for your advise. Phone calls from Turkey are still too expensive so I should move on with my self assessment, if I need more to ask I will reach you again.Best regards,
ArzuCustomer

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