Just recieved 2018 tax bill, UK

[BangkokTony]

Today I received a tax bill of 8296 gbp.  I am living in Thailand.  My only income is from my UK pension of 622.60 a month. I have lived here 12 years but this year HMRC are asking for 8,296 for year ending April 2018 and ...also, on account 8296 for year April 2019..total 16,592 GBP.
how can this be possible? I do have savings interest that accrue to 1000 gbp a year.

 

Tax year 2016/17 I was informed there was no tax to pay and no details have changed.

I have no other income than my pension and interest.

 

Description

Amount (£)Tax8296.15

Surcharges0.00

Interest0.00

Penalties0.00

Sub total8296.15

Less payments for this year0.00

Less other adjustments0.00

Total8296.15

[lopburi3]

Are you sure that is not the amount you owe tax on?  Seems about right if you add income and savings for each year.

 

Edit:  sorry but forum will not let me reply without using special characters (wants to use underline if I do not select anything else).  

[BangkokTony]

 

 

GBP16592.30 will be due for payment and a breakdown of this amount and when this needs to be paid by is outlined in the table below. Follow the appropriate link within the 'Description' column to find out more about each payment.

 

Description	For	Due date	Amount (£)
Tax year ending 05 Apr 2019	First payment on account	31 Jan 2019	4148.07
Tax year ending 05 Apr 2019	Second payment on account	31 Jul 2019	4148.08
Tax year ending 05 Apr 2018	Balancing payment	31 Jan 2019	8296.15
Total			16592.30

[SheungWan]

Based on the info you have provided, it does look way out. I would phone them in the first instance. 

[lopburi3]

Have no idea how your tax system works but makes no sense to me - all payments due same day which is prior to end of the year payment is for?  Are you sure this is from official sources?

[sanemax]

Was this an E-mail or a letter 

[BangkokTony]

I received an e mail.  I went to HMRC.gov.uk.  Used my sign in info with password.  Received a text via mobile phone.  Logged in. Everything seems legitimate.

 

I am aware that scammers do offer to reimburse if too much tax paid etc.  

 

I am going to call at 4pm today to find out more

[Briggsy]

I will wager this is an estimated assessment based on failure to provide information.

 

Correspondence may have been sent to your UK address.

 

Or alternatively it is a scam email. Are you sure it was from HMRC?

[sometimewoodworker]

It is normal practice for HMRC to present a ridiculously large assessment if they actually want a tax return. 

 

While you are waiting, assuming you haven't already submitted a tax return 2017/2018 do it now and submit it.

 

if you don't submit a tax return and contest the amount it becomes the tax you have to pay, so don't delay, FWIW you are getting close to having to pay a penalty for late submission.

Edited December 7, 2018 by sometimewoodworker

[sometimewoodworker]

8 minutes ago, Briggsy said:

I will wager this is an estimated assessment based on failure to provide information.

Spot on.

[roo860]

According to HMRC they never use email with sensitive information.

Sent from my SM-G920F using Thailand Forum - Thaivisa mobile app

[steve73]

10 minutes ago, roo860 said:

According to HMRC they never use email with sensitive information.

Sent from my SM-G920F using Thailand Forum - Thaivisa mobile app
 

This is also my understanding... looks like a scam... but contact them directly just in case.

[sometimewoodworker]

2 minutes ago, steve73 said:

This is also my understanding... looks like a scam... but contact them directly just in case.

Not a scam as he has confirmed it on the "gateway.gov.uk" portal.

 

no information as the where the amounts came from but probably the secure gateway site not the email.

 

as to action as I said get a tax return in now and phone later.

[Toscano]

I'm sure this must be a technical error .  Perhaps you have not sent in your tax return form and papers , so these figures may be estimates based on your income while working in Britain . You had nothing to pay 2016/17 , so why now , if true as stated your income is so low there shouldn't be anything to pay .  Did this tax demand arrive by post in a brown envelope ? If not I should suspect a scam , it also seems strange that next years tax demand is being requested in advance , on account , I don't believe the inland revenue does that .  

Do you spend a lot of time in Britain , for which you might be considered taxable ? After 12 years , if living in Thailand all the time with so small an income , you shouldn't be in touch with the inland revenue at all . Unless mistaken , the tax demand per year must about equal your entire annual income . I have lived abroad since 1998 and have had no contact with the inland revenue at all . I have not received a tax return form since 1992 . You need to check up by letter or telephone , not E mail . If you don't pay , will they send someone to Thailand to collect the money , or perhaps extradite you back to Britain ? Most likely NO !   

[Mattd]

If your UK derived income is as you quote and you are not resident in UK, then for sure you are not liable for any income tax.

Have you ever declared to HMRC that you are non-resident in the UK for tax purposes?

If not, then were you submitting your own returns in the UK before, or were you on PAYE?

It all does seem a bit suspect that they are assessing your income tax so high.

https://www.gov.uk/tax-foreign-income/residence 

[BangkokTony]

I will wager this is an estimated assessment based on failure to provide information.
 
Correspondence may have been sent to your UK address.
 
Or alternatively it is a scam email. Are you sure it was from HMRC?

I sent my tax return late September. I provided full information although I might not have understood the questions fully.
My circumstances are.
Living in Thailand 12 years
Living on funds accrued in Nationwide bank. I transfer every 2 years to Thailand.
Interest declared from Nationwide
I believe best to be honest then nothing can, hopefully, go wrong. But now I have stress to deal with HMRC from afar.
Already sent letter via Post Office.
Thankfully I have 7 weeks to sort it out, Jan 31 being the deadline.


Sent from my SM-G610F using Tapatalk

[Retiredandhappyhere]

No need to worry, as on the basis of the income amounts you quoted you have no tax liability at all, assuming that you were entitled to the usual Personal (tax-free) Allowance.   In fact, if you had tax deducted on UK interest, you should be able to reclaim it.   Simply contact HMRC and advise them of your correct income figures, (and tax deducted), presumably as on the Tax Return you have already submitted or are about to submit and they will amend their figures. 

 

Even if you have not so far sent in a Tax Return for the year ended 5th April 2018, it is unlikely that HMRC would deliberately calculate such a ridiculously high figure,  I believe it is just a computer error and you have absolutely nothing to worry about.  

 

Whatever a persons' tax liability was for the past year, one half of that is payable as a payment on account for the following year, payable by 31st January in the following year, which explains the 50% charge you referred to.  The other 50% is payable by 31st July.  In your case, of course, the figures should be NIL, 

[BangkokTony]

I'm sure this must be a technical error .  Perhaps you have not sent in your tax return form and papers , so these figures may be estimates based on your income while working in Britain . You had nothing to pay 2016/17 , so why now , if true as stated your income is so low there shouldn't be anything to pay .  Did this tax demand arrive by post in a brown envelope ? If not I should suspect a scam , it also seems strange that next years tax demand is being requested in advance , on account , I don't believe the inland revenue does that .  
Do you spend a lot of time in Britain , for which you might be considered taxable ? After 12 years , if living in Thailand all the time with so small an income , you shouldn't be in touch with the inland revenue at all . Unless mistaken , the tax demand per year must about equal your entire annual income . I have lived abroad since 1998 and have had no contact with the inland revenue at all . I have not received a tax return form since 1992 . You need to check up by letter or telephone , not E mail . If you don't pay , will they send someone to Thailand to collect the money , or perhaps extradite you back to Britain ? Most likely NO !   

The tax they want exceeds my pension income. They also tax my interest at 100%.
The website has all my historical information. Past years tax refunds etc on my interest. NI contributions.
No figures were given on the e mail. I had to visit the website via password and phone sms

Sent from my SM-G610F using Tapatalk

[Briggsy]

You need to be absolutely sure you are not dealing with a scam email first. You need to contact the HMRC directly. Do not click or any links in the email. Do not cut and paste or follow any URL details in the email.

 

I wouldn't stress too much about an estimated assessment from HMRC. They are easily remedied.

[cauldlad]

HMRC send messages through your online personal tax account NOT by email If you have gone paperless.

If you are over the tax allowance currently 11500 on UK earned income/pensions you are liable to UK tax regardless of how many years you have lived abroad.

[sammieuk1]

Unless you have a total UK income of less than £11,850 you pay no tax simple as that????  

[OmarZaid]

scam

[sanemax]

2 hours ago, BangkokTony said:

I received an e mail.  I went to HMRC.gov.uk.  Used my sign in info with password.  Received a text via mobile phone.  Logged in. Everything seems legitimate.

 

I am aware that scammers do offer to reimburse if too much tax paid etc.  

 

I am going to call at 4pm today to find out more

Did you click on a link in the e-mail , or did you do a websearch for the address ?

[topt]

18 minutes ago, BangkokTony said:

I sent my tax return late September. I provided full information although I might not have understood the questions fully.

How did you send your return - paper or online? If paper you were cutting it fine as has to be filed by 31st October.

If paper they won't even have got round to looking at it - I sent mine in May and the wait time to process was from memory about 12 weeks........ 

If online you are supposed to use commercial software otherwise you cannot fill in the form SA109 - residence section.

 

However as many have said best way is to contact by phone. 

23 minutes ago, BangkokTony said:

Already sent letter via Post Office.
Thankfully I have 7 weeks to sort it out, Jan 31 being the deadline.

They may not even look at the letter until after the deadline.......remember Xmas is in the middle as well.

[shy coconut]

1 hour ago, sometimewoodworker said:

Not a scam as he has confirmed it on the "gateway.gov.uk" portal.

 

no information as the where the amounts came from but probably the secure gateway site not the email.

 

as to action as I said get a tax return in now and phone later.

The phishing scam emails often have a link to a bogus site, designed to look

like the real thing. I regularly get these things and almost fell for it once.

 

As has been said, the inland revenue never send emails regarding rebates or demands.

Edited December 7, 2018 by shy coconut

[topt]

@BangkokTony links to sign in

https://www.gov.uk/log-in-register-hmrc-online-services

 

Links to read up if interested

https://www.gov.uk/tax-uk-income-live-abroad

[Griffo63]

It's a mistake. Phone them, in my experience they are very helpful and I'm sure they'll deal with it quickly - assuming the information you've given is correct

 

[retayl]

This has all the hallmarks of a scam. Just to be sure make independent contact with HRMC for confirmation. Just out of interest, with such a low income how do you renew your visa to remain in LoS?

[mfd101]

Perhaps HMRC are employing Polish plumbers in the typing pool and one of them put the . in the wrong place. Never mind, Brexit will fix it.

[retayl]

Just for additional info. HRMC are not allowed to make contact by email. This according to my wife, a retired tax inspector.