How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4949
Type Your Tax Question Here...
bigduckontax is online now

I have been non-resident purposes since December 2011.

Customer Question

I have been non-resident for tax purposes since December 2011. Since October 2014, I have rented out my property for pounds 500 per month. Do I need to register for self-assessment as my UK rental income is below the tax threshold?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
First things first; when you left the UK did you send a Form P85 to HMRC? If you did not you should do so immediately. Fortunately there is no time limit as to its submission, the form is available on the web and can be filed on line. On receipt HMRC will classify you as non resident for the 12/13 tax year and furthermore split the 11/12 tax year into two portions, one resident and the other non resident. You will find dealing with HMRC much easier if you use the P85 process.
Assuming that you are a citizen of an EEA country you are entitled to a personal allowance, currently 10.6K. The rental of your property is subject to UK Income Tax (IT) even if you are non resident and you must self assess to inform HMRC of the position. Of course HMRC may tell you not to bother as there is no tax due and even HMRC do not want to process returns which yield no revenue, but you must have their confirmation in writing to this effect. You should write to your tax office preferably quoting your UTR [Unique Tax Reference} and your NI Number explaining the situation and seeking guidance.
I do hope my reply has been of assistance.
Customer: replied 2 years ago.
I contacted HMRC office by telephone when I left the UK. I had a 3 year contract to work for the Asian Development Bank and the response to me was that as far as the IR was concerned I was NR for tax purposes and they didn't expect to hear from me. I haven't been in the UK for more than 15 days per year since and I still work for ADB. I have paid class 2 NI from the month I left the UK. I received a refund from HMRC on my 2011/12 PAYE assessment. Do you still recommend I fill the P85 form?I don't have a UTR as I haven't registered for self-assessment. If I write a letter to the tax people rather than try to fill the tax form in for this year (given that I am due no tax), in your view would this work? Should I call them instead and explain? I really have no idea what sections of the form to fill in (employment, foreign income etc) but worry that if I delay any further (i.e. I need to register for self-assessment, wait till they send me a UTR - which could take some time - and then submit the form from here (Fiji) that I might go over the 3 month period and face crippling fines! Any advice would be helpful.
Expert:  bigduckontax replied 2 years ago.
Yes, most definitely; do the P85 procedure, belt and braces! P85s are handled by a different HMRC office than your normal tax account.
You will have an UTR, it will be on your tax code or any letter written to you by HMRC. Write to your tax office and ask for guidance. They may well tell you not to bother with self assessment anyway, but you need to clear your yardarm in this matter. HMRC are unlikely to charge penalties where no loss of revenue has occurred and if they do they can easily be the subject of an appeal.
For self assessment you need to complete Forms SA100 and SA105 or on line equivalents.