Tax Returns in Oz and UK

[Guest Kathryn7]

I moved to Australia 18m ago as a permanent resident, leaving behind a house that I rent out and a small amount of money in my UK bank account to cover the expenses relating to the house.

 

I have completed one tax return here (just submitted the 08/09 one, somewhat late!)

 

I received a letter from the UK HM Revenue & Customs saying they believe I need to complete a tax return each year. Its just a general letter, so doesn't specify why I need to do one. Is this right?

 

If you could offer any advise that would be much appreciated.

 

Sorry if I have posted this in the wrong place....

[Weasie]

I am in the same position and I am expecting to fill out a UK tax return... sorry but it is inevitable I think

[Guest Kathryn7]

Thanks

Do they only ask about your UK earnings?

[Guest HPRYCE]

Yes you will definitely have to fill in a tax return each year as long as you are renting out a property. It may well be that there is no tax to pay, as you are able to deduct all sorts of expenses against your tax liability. And yes they are only interested in your UK assets ie interest on any savings, profit from renting out house etc.

[Guest Kathryn7]

Yes you will definitely have to fill in a tax return each year as long as you are renting out a property. It may well be that there is no tax to pay, as you are able to deduct all sorts of expenses against your tax liability. And yes they are only interested in your UK assets ie interest on any savings, profit from renting out house etc.

 

 

Thanks for your help

I should be OK as mortgage on the house exceeds any rental income. I had to declare all this on my Oz tax return though, so could I potentially be getting taxed twice?

K x

[Guest HPRYCE]

Thanks for your help

I should be OK as mortgage on the house exceeds any rental income. I had to declare all this on my Oz tax return though, so could I potentially be getting taxed twice?

K x

 

I know our accountant in Oz did not ask us for any info regarding our UK tax return, my only thought being that as we are here on temporary residents 457 visa that we are treated differently compared to permanent residents. Might be worth getting an accountant here in Oz just to clarify this.

[Guest Liam]

KAthryn

 

You will not be taxed twice as any tax you pay in the UK can be carried in to your Australian Tax Return as a Credit to ensure you are not paying twice.

 

Make sure your new tax agent knows of your UK earnings and tax situation.

 

Liam

[Guest Kathryn7]

KAthryn

 

You will not be taxed twice as any tax you pay in the UK can be carried in to your Australian Tax Return as a Credit to ensure you are not paying twice.

 

Make sure your new tax agent knows of your UK earnings and tax situation.

 

Liam

 

Thanks Liam for your help

Kathryn x

[Guest Bernicem80]

Oh, in that case I too need to fill in a UK Tax return!!

I had declared that we are renting our house in the UK, as we had to apply for our rental income not to be deducted of tax, since the mortgage is more than the rent! I presumed that because we weren't actually making any money, that we wouldn't have to do one???! Ooops!

 

I guess I need to call the Inland Revenue and find out!

[Alan Collett]

If your rental expenses exceed your rental income you should consider whether there is merit lodging a UK tax return to crystallise the losses, which can be claimed in future years should you derive a UK rental surplus.

 

By contrast - so long as you are not a temporary visaholder - you can claim the UK rental loss as a tax deduction on your Australian tax return, and in so doing negatively gear, the end result usually being a tax repayment given that you have already suffered tax on your income (eg PAYG withheld on salary).

 

We have a tax FAQ schedule that includes commentary on the subject of UK source rental income - anyone who would like a copy should send an email to me: alan - at - gomatilda - dot - com

 

Best regards.

[Alan Collett]

Yes you will definitely have to fill in a tax return each year as long as you are renting out a property. It may well be that there is no tax to pay, as you are able to deduct all sorts of expenses against your tax liability. And yes they are only interested in your UK assets ie interest on any savings, profit from renting out house etc.

 

It is not unknown for HM Revenue in the UK to agree that a Self Assessment tax return is not needed, particularly where the individual is a UK citizen who remains entitled to a UK personal allowance (even when non resident), and where the UK source income is less than the personal allowance.

 

Maybe consider writing to the Revenue in the UK in this context?

 

Best regards.

[Guest sparkypeg]

All,

 

Just be careful in that it is only the interest on a mortgage that is deductible against the rental income, not any capital amounts paid. Other items such as repairs, Insurance, letting fees etc are also allowed. There is also specific rules and applications relating to non resident landlords with repsect of tax being witheld by agents or tenants.

 

Below is a copy from HMRevenue & Customs website regarding contact details for non-residents. If the e-mail link in the message does not work then try the website at HM Revenue & Customs: E-mailing HMRC Residency and South Wales Area offices

 

I would suggest dropping them an e-mail or telephone call.

 

I'm a UK Tax Consultant.

 

Hope this helps

Income Tax and Capital Gains Tax enquiries for non-UK residents

 

On this page: telephone, email

 

Telephone

 

Tax enquiries for non-UK residents

 

This helpline answers queries regarding Income Tax and Capital Gains Tax for customers who live or work abroad Opening hours 8.00 am to 5.00 pm, Monday to Friday

Closed weekends and bank holidays 0845 070 0040 If you're calling from abroad please telephone: +44 151 210 2222 Fax Number 0151 472 6067

Email

 

A first point of contact for anyone not resident in the UK but who has income from a UK source or who pays UK National Insurance contributions Email enquiries for non-UK residents By submitting information to us directly by using special forms on our website your message is secure, but our email reply to you, which will be sent over the internet, is not. Information sent by email over the internet is not secure and is at risk of being intercepted and read by people other than those it was intended for. If our response to you contains any personal or confidential information we will only reply to you by letter or telephone.

 

If you have any doubt about the authenticity of an email you receive which claims to have come from HMRC please do not follow any links within the email, disclose any personal details or respnd to it.

 

Following the link below to report HMRC related phishing emails.

[Alan Collett]

With respect, it is not usually best to plan one's tax affairs based on an exchange with the tax authority.

 

Engaging a suitably qualified tax professional is to be preferred, even if it does mean paying a fee.

 

Best regards.

[Guest sharpie76]

Dear Alan

 

I have just read your thread on poms in oz i was wondering if you could send me a tax FAQ schedule that includes commentary on the subject of UK source rental income. I will be renting my house out from next month and this would really help as i am new to all this.

tried to email you but would not send to address given

 

Kind Regards

 

Nicki

 

If your rental expenses exceed your rental income you should consider whether there is merit lodging a UK tax return to crystallise the losses, which can be claimed in future years should you derive a UK rental surplus.

 

By contrast - so long as you are not a temporary visaholder - you can claim the UK rental loss as a tax deduction on your Australian tax return, and in so doing negatively gear, the end result usually being a tax repayment given that you have already suffered tax on your income (eg PAYG withheld on salary).

 

We have a tax FAQ schedule that includes commentary on the subject of UK source rental income - anyone who would like a copy should send an email to me: alan - at - gomatilda - dot - com

 

Best regards.

[Guest]

Hi

I have been trying to call this number for the past two weeks, and 3 other numbers, they all either just ring out, put me on hold for ever, or tell me the offices are now closed (11am UK time), it is costing us a fortune, all we want to do is let them know our new address so they can send out the tax return to us. We sent them an email two weeks ago also with our new address details, and guess what we have had no reply, so we have given up. Have you got any other suggestions how we can get hold of them. I find it so frustrating that they give you an number to call if you live abroad, knowing its costing people a fortune and nobody answers !!!

Thanks

[Alan Collett]

Hi

I have been trying to call this number for the past two weeks, and 3 other numbers, they all either just ring out, put me on hold for ever, or tell me the offices are now closed (11am UK time), it is costing us a fortune, all we want to do is let them know our new address so they can send out the tax return to us. We sent them an email two weeks ago also with our new address details, and guess what we have had no reply, so we have given up. Have you got any other suggestions how we can get hold of them. I find it so frustrating that they give you an number to call if you live abroad, knowing its costing people a fortune and nobody answers !!!

Thanks

 

Maybe send a letter by International Express Post Platinum service so you have proof of delivery?

 

Alternatively, lodge your why not tax return electronically, with your new address noted on the tax return.

 

Best regards.

[Alan Collett]

Dear Alan

 

I have just read your thread on poms in oz i was wondering if you could send me a tax FAQ schedule that includes commentary on the subject of UK source rental income. I will be renting my house out from next month and this would really help as i am new to all this.

tried to email you but would not send to address given

 

Kind Regards

 

Nicki

 

Hi Nicki.

 

I need your email address so I can send the schedule to you ... I will send you a PM.

 

Best regards.

[Guest Bernicem80]

Hi

I have been trying to call this number for the past two weeks, and 3 other numbers, they all either just ring out, put me on hold for ever, or tell me the offices are now closed (11am UK time), it is costing us a fortune, all we want to do is let them know our new address so they can send out the tax return to us. We sent them an email two weeks ago also with our new address details, and guess what we have had no reply, so we have given up. Have you got any other suggestions how we can get hold of them. I find it so frustrating that they give you an number to call if you live abroad, knowing its costing people a fortune and nobody answers !!!

Thanks

 

Yes, me too! Its a nightmare! I sent them an email about 5weeks ago and had no response and have tried calling several times! Like you say, it rings and I have been placed in hold for 45mins with no luck, several times!! I only want to ask a simple question!!!