Self self assessment tax return for UK

[Card]

I have lived in Thailand for 20 years and fully declared my non-residency status to HMRC. In 2012 the HMRC told me I need not send an annual self assessment tax return each year anymore because I only have my UK pensions (taxed at source) and my bank interest which was very low and also taxed at source. However, my bank interest earnings (given gross- not taxed at source anymore) have shot up recently due to high UK bank interest rates, so I completed a questionnaire from HMRC as to whether I need to start sending then a self assessment for tax again, as I am registered for self assessment online. The questionnaire states that as I don't have income of more than £100,000 per annum income, nor any foreign income, and no more than £10,000 per annum earnings from bank interest etc then I don't need to send one.

 

I know I can ask HMRC directly but I want to put this to the forum first:

 

How come I wont have further tax liabilities this year if my untaxed bank interest has shot up?

 

Does the HMRC depend on other ways to find your income and then automatically send a self assessment to you if needed? The questionnaire is here:

 

https://www.gov.uk/check-if-you-need-tax-return

[scubascuba3]

Based on what you wrote in your post there may be a bank interest free allowance of £10k, google it to find out

[BlueScouse]

I retired last year, from the merchant navy. Never filled in a tax form for more than 30 years. I consulted a tax accountant who completed a tax form for me. I expected to pay tax due to state pension and dividend payments, and bank interest on cash. However, somehow the HMRC said they owe me-79p, 

I have searched for info on this.  I asked google if non residents have to pay tax on dividends or interest. Found the following-

 

Individuals who are non resident in the UK are not taxable in the UK on UK interest or dividends received. However, if tax is deducted at source from the interest and/ or dividends, then some or all of the tax may not be refundable ( this is known as disregarded income)

 

Also this

https://www.gov.uk/government/publications/non-residents-and-investment-income-hs300-self-assessment-helpsheet/hs300-non-residents-and-investment-income-2022

Seems it is called disregarded income for non residents. I am off to UK early April so will contact my tax accountant and check with him, then I will be able to stop paying him.

[Mike Lister]

13 minutes ago, scubascuba3 said:

Based on what you wrote in your post there may be a bank interest free allowance of £10k, google it to find out

"The personal savings allowance (PSA) lets most people earn up to £1,000 in interest without paying tax on it. At current savings rates, you'd need to have just under £20,000 in the top easy-access savings account to exceed the allowance. This guide has full details on the PSA and how it works..."

 

 

https://www.moneysavingexpert.com/savings/personal-savings-allowance/

[scubascuba3]

45 minutes ago, Mike Lister said:

"The personal savings allowance (PSA) lets most people earn up to £1,000 in interest without paying tax on it. At current savings rates, you'd need to have just under £20,000 in the top easy-access savings account to exceed the allowance. This guide has full details on the PSA and how it works..."

 

 

https://www.moneysavingexpert.com/savings/personal-savings-allowance/

This .gov link is quite useful

 

  "You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure"

 

"Starting rate for savings

You may also get up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings.

 

The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be.

 

If your other income is £17,570 or more

You’re not eligible for the starting rate for savings if your other income is £17,570 or more.

 

If your other income is less than £17,570

Your starting rate for savings is a maximum of £5,000. Every £1 of other income above your Personal Allowance reduces your starting rate for savings by £1"

 

https://www.gov.uk/apply-tax-free-interest-on-savings

 

 

 

 

[topt]

1 hour ago, BlueScouse said:

Seems it is called disregarded income for non residents. I am off to UK early April so will contact my tax accountant and check with him, then I will be able to stop paying him.

 

11 minutes ago, scubascuba3 said:

This .gov link is quite useful

There is a key line in that link in 2 - 

Quote

If the tax charge is limited in this way, personal allowances will not be given against other income. 

So appears to be a question of whether you are better off claiming the personal allowance and being taxed on interest etc. or not. This came up in a thread years ago and from memory some guys who had extensive dividends were better off not claiming the allowance and hence not paying any tax on their investment income. 

[Card]

15 hours ago, BlueScouse said:

I retired last year, from the merchant navy. Never filled in a tax form for more than 30 years. I consulted a tax accountant who completed a tax form for me. I expected to pay tax due to state pension and dividend payments, and bank interest on cash. However, somehow the HMRC said they owe me-79p, 

I have searched for info on this.  I asked google if non residents have to pay tax on dividends or interest. Found the following-

 

Individuals who are non resident in the UK are not taxable in the UK on UK interest or dividends received. However, if tax is deducted at source from the interest and/ or dividends, then some or all of the tax may not be refundable ( this is known as disregarded income)

 

Also this

https://www.gov.uk/government/publications/non-residents-and-investment-income-hs300-self-assessment-helpsheet/hs300-non-residents-and-investment-income-2022

Seems it is called disregarded income for non residents. I am off to UK early April so will contact my tax accountant and check with him, then I will be able to stop paying him.

Thanks. But the questionnaire I quote is not only for non residents.

[noobexpat]

18 hours ago, BlueScouse said:

I retired last year, from the merchant navy. Never filled in a tax form for more than 30 years. I consulted a tax accountant who completed a tax form for me. I expected to pay tax due to state pension and dividend payments, and bank interest on cash. However, somehow the HMRC said they owe me-79p, 

I have searched for info on this.  I asked google if non residents have to pay tax on dividends or interest. Found the following-

 

Individuals who are non resident in the UK are not taxable in the UK on UK interest or dividends received. However, if tax is deducted at source from the interest and/ or dividends, then some or all of the tax may not be refundable ( this is known as disregarded income)

 

Also this

https://www.gov.uk/government/publications/non-residents-and-investment-income-hs300-self-assessment-helpsheet/hs300-non-residents-and-investment-income-2022

Seems it is called disregarded income for non residents. I am off to UK early April so will contact my tax accountant and check with him, then I will be able to stop paying him.

 

I think you have misquoted the bit in blue.

You should have linked the source, which then states 'from a uk limited company'.

 

[BlueScouse]

From the HMRC website

 

https://community.hmrc.gov.uk/customerforums/pt/d0f9057b-3d87-ee11-a81c-000d3a86dfe6#:~:text=Individuals who are non resident,is known as disregarded income).

[scubascuba3]

8 hours ago, BlueScouse said:

From the HMRC website

 

https://community.hmrc.gov.uk/customerforums/pt/d0f9057b-3d87-ee11-a81c-000d3a86dfe6#:~:text=Individuals who are non resident,is known as disregarded income).

Would a "non UK resident" receive the personal tax allowance?

[Mike Lister]

20 minutes ago, scubascuba3 said:

Would a "non UK resident" receive the personal tax allowance?

Yes. Non-resident for tax purposes that is, you have to file the status with HMRC but you get the PA regardless.

[Mike Lister]

On 3/17/2024 at 6:02 PM, topt said:

 

There is a key line in that link in 2 - 

So appears to be a question of whether you are better off claiming the personal allowance and being taxed on interest etc. or not. This came up in a thread years ago and from memory some guys who had extensive dividends were better off not claiming the allowance and hence not paying any tax on their investment income. 

You can't "not claim" the Personal Allowance, it's an automatic part of self assessment.

[topt]

4 hours ago, Mike Lister said:

You can't "not claim" the Personal Allowance, it's an automatic part of self assessment.

Not sure how that works Mike but if you are completing SA109 (as you should if non resident for UK tax) then there is a box to specifically claim it. Page RR2

[Mike Lister]

2 minutes ago, topt said:

Not sure how that works Mike but if you are completing SA109 (as you should if non resident for UK tax) then there is a box to specifically claim it. Page RR2

I suppose non doms w/couldn't claim it.