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bigduckontax
bigduckontax, Accountant
Category: Tax
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I would like to make sure my wife doesn't have to submit any

Resolved Question:

I would like to make sure my wife doesn't have to submit any tax return for 2016. Below is a quick recap so that you're able to make a proper judgement.
We moved from Colombia to the UK last June as I've been relocated with the company I worked for. My wife is not working and doesn't earn anyincome in the UK and in Colombia. She has opened a bank account in the UK and has transferred around 23k via two bank transfers from her own account in Colombia. The money is transferred from her savings account which is being fed from the interest of a deposit account. She is being taxed by Colombian authorities (taxes on two terms deposits was around 4million pesos, an equivalent of £1,125) on deposit account interest she's making. We've used half the money to buy a car and the other half is being used for daily expenditures.
Does she need to file a tax return or not?
Submitted: 1 month ago.
Category: Tax
Expert:  bigduckontax replied 1 month ago.

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

If your wife is resident in the UK for more than 183 days in any one tax year then she is liable for UK taxation on her world wide income. If HMRC tell her she must make a self assessment tax return she must do so irrespective of her income level. 1K of deposit income is tax free in the UK. There is a Double Taxation Treaty between the UK and Columbia which precludes the same income stream being taxed in both jurisdictions. This is achieved by means of tax credits, the tax paid in Columbia being allowed as a credit against any UK liability.

I would be inclined to check with your local HMRC office over her position. Just Answer is an independent tax advice site with no connection with HMRC. In the circumstances that Department may say she need not self assess, but if they do not she may well have to of face penalties for failure.

I do hope that you have found my reply of assistance.

Customer: replied 1 month ago.
Ok will reach out to HMRC then to find out. One final question, in case she does could she register to self assessment without having a NINO? As she is not working in the UK or claiming any benefit, she does not need to pay national insurance. Thanks.
Expert:  bigduckontax replied 1 month ago.

No, she has no NI liability. This will complicate an attempt to register for self assessment. I would tend to leave it to HMRC to sort out.

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Expert:  bigduckontax replied 28 days ago.

Thank you for your support.