Expat Reporting

There are a number of administrative matters which UK expats and others need to be taken care of in connection with a move to or from the UK. These include:

INFORMING HMRC OF YOUR ARRIVAL OR DEPARTURE

If you arrive in or leave the UK, you will need to inform HMRC, either on form P85, or on a self-assessment tax return – or on both depending on the circumstances.

Individuals who have been asked to fill in a self-assessment tax return for the tax year that they leave the UK will need to file a tax return and complete the supplementary residence pages of the tax return in order to report that they have left the UK and the basis on which they are splitting the tax year into resident and non-resident parts (where applicable).

The same is true for individuals arriving in the UK. An additional form may also be required to first register under the UK tax return system.

It is important to fill in these forms correctly as they will determine how HMRC will tax you in the UK.

Accidental errors can lead to overpaying tax so we would recommend asking us to assist with completing these forms.

FILING UK TAX RETURNS WHILE NON-UK RESIDENT

Non-UK residents may be required to file annual UK tax returns in the following situations; even if there is no tax to pay:

• If they do any work in the UK whilst non-resident (for example, if they are sent to the UK on a business trip)

• If they rent out property in the UK

• If they receive UK investment income

• If they are a director of a UK company

• If they receive profits from a UK partnership

• If they earn an income in the UK through self-employment

The tax return will need to include completed residency pages, detailing the amount of time spent in the UK during the year and other connections the individual has with the UK.

Filing UK tax returns online with HMRC directly is not an option as HMRC’s online services do not cater for non-UK residents. However, we have specialist tax software and would be delighted to prepare and submit your tax returns to HMRC on your behalf.

TAX RETURN PENALTIES

If a UK tax return is not filed on time (by 31 January 2018 for 2016/17), the following late filing penalties will be charged, even if no tax is due:

• 1 day late: Initial penalty of £100

• 3 Months late: Automatic penalty of £10 per day up to a maximum of £900

• 6 months late: A further penalty of the greater of £300 or 5% of the tax that would have been due and payable if the return had been submitted on time

• 12 months late: Another penalty of £300 or 5% of the tax that would have been due and payable if the return had been submitted on time

In addition to the above, there may also be tax geared penalties and interest to pay on any outstanding tax payments so it is important that tax returns are filed on time. We can help you to ensure you submit your UK tax returns on time and therefore avoid penalties.