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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.
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.
Thank you for your support.