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 Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5148
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

I am a British citizen, resident in Zimbabwe. My UK bank

This answer was rated:

I am a British citizen, resident in Zimbabwe. My UK bank account is offshore. In August 2016 (this month) I purchased a 'Holiday Home' from Parkdean Holiday Parks, Nairn, Scotland. I have also registered the Holiday Home for the Parkdean Sub-Hire Scheme. No income has yet been received as the holiday home has just been established on the pitch.
Question: I am responsible for the eventual sub hire income payable to HMRC (or 20% is automatically deducted for the UK Exchequer). How do I manage this payment myself or would it be more efficient for Parkdean to deduct the 20%?
If so, would Parkdean submit the tax return for me, or would I do it on line?
Question: I am responsible for accounting for output VAT to HMRC on the income received from Parkdean. How would I do this? Could Parkdean also submit it on my behalf?

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?

Many thanks

Customer: replied 1 year ago.
No, I have not registered for VAT, nor do I file a tax return to the UK authorities. I am permanently resident in Zimbabwe and though I am retired here, I work part time, and file a quarterly tax return with the Zimbabwe Revenue Authority. My purchase of the holiday home in Scotland is to provide a temporary 'home' and raise some revenue for myself in the event that I return to Scotland. Though schooled in the UK, I have never worked there, and therefore did not contribute to the State Pension, therefore, I understand, not eligible for benefits.
Customer: replied 1 year ago.
Please confirm whether you received my response, above. Should I wait for a further answer?
Customer: replied 1 year ago.
I would like to speak to a Tax Advisor on the phone but as it is another 44 pounds, it is preferable that I continue with my text queries covered by my original amount of 47 pounds. Should I wait for a further analysis to my response to the Tax Advisor's original questions? I have not had any substantive answers yet. Many thanks.

Thank you for your reply.

I am drafting my answer and will respond to you shortly.

Many thanks

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.

Customer: replied 1 year ago.
Many thanks indeed for your detailed reply. If possible, I would like a little time to open the recommended files and see if I understand them - particularly my self assessment. I will rate you with pleasure, but would I be able to ask some more questions tomorrow to you later today or tomorrow (Thursday)? Kind regards

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.

Many thanks and best wishes and other Tax Specialists are ready to help you

I thank you for accepting my answer.

Best wishes

Customer: replied 1 year ago.
Dear Tax Advisor, I am back with some more questions - am I permitted to do so?I have down loaded some of the forms and need clarification:
Do I have to register for Self Assessment by 5 October 2016, to cover the tax year 6 April 2016 to 5 April 2017?
Is the above purely a registration? Would the actual self assessment be filed during April 2017?
If I decided that I needed assistance, would/could you act as an Accountant on an ongoing basis to file my returns etc?
If so, approximately how much would that cost on an annual basis?Many thanks indeed, sincerely Jane

for ease of speed please advise your email address

Customer: replied 1 year ago.
My email address is:

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.

Many thanks