UK Tax Return when resident in Thailand - How to?

[Kinnock]

I (think) I need to file a UK tax return even though I may not need to pay any tax, as I have a property rented out in UK.  But according to the UK Gov website I can't use the Inland Revenue on-line form as I'm non-resident.

 

The website says I need to purchase commercial software to file the return.  This seems strange as there's also the 'free' system on the Gov website .... but for UK residents only.

 

Looking at the hundreds of commercial tax filing systems listed on the Gov website, the prices start around £60 GBP.

 

What have other members done?  Purchase the commercial software, just use the free UK one using a UK address, use an accountant, not bother?

 

Seems wrong to have to buy software just to pay tax!  (Also serves me right for being honest about living in Thailand with my gov pension .... no annual rises and I have to pay to file a tax return.)

[topt]

4 hours ago, Kinnock said:

What have other members done? 

I used to file a paper return but costs of postage have risen so much that for 2023/24 return I decided to bite the bullet and pay for commercial software to file online. 

 

There was a previous thread about this and someone else recommended Andica which I had already shortlisted from the masses listed on the HMRC site. That only cost me £19.20 - and there were a few others below £35 from memory.

 

I particularly wanted a non-cloud based version and if you have completed paper returns it should be quite straightforward. Otherwise you may want to pay a bit more if you think you will need more help.

 

[OJAS]

5 hours ago, Kinnock said:

just use the free UK one using a UK address

 

I personally use the free UK one with my Thai address, and no-one at HMRC has ever batted an eyelid! Whether you can do likewise, though, will depend on your particular circumstances. For example, it would become an issue should you ever sell your UK property, because CGT is calculated from a rebasement date of 6 April 2015 in the case of non-residents, but from a (presumably earlier) purchase date in the case of residents. I filed a paper return when this became an issue for me following the sale of my UK property 3 years ago.

 

Another potential problematical area which I have identified is if HMRC were to revive a proposal floated 10 years ago to abolish the personal tax-free allowance for non-residents - which, thankfully, was subsequently booted into the long grass. As far as I am concerned, though, this is a bridge to be crossed if and when we get to it.

 

[quake]

I use Andica Limited. 19.20 inc vat. ( only for one device at that price )

works fine for rental income.

it's all on line.

Or use a paper return, but think it needs to be sent before oct 31, or around that date.

 

 

 

[Nick Carter icp]

8 hours ago, Kinnock said:

I (think) I need to file a UK tax return even though I may not need to pay any tax, as I have a property rented out in UK.

 

   If you are self assessment tax then you have to submit a tax return and If the rental income over 12 500 Quid then you have to pay tax on it .

   If you don't file a self assessment tax return then its a 10 Pound a day fine , even if you have no tax to pay , 3650 Quid a year fine .

  You can file a UK tax return if abroad , just need a UK phone number to get the log in code sent to 

[quake]

10 hours ago, Kinnock said:

The website says I need to purchase commercial software to file the return.  This seems strange as there's also the 'free' system on the Gov website .... but for UK residents only.

 

You will need to-----

Use the SA109 supplementary pages when filing your SA100 Tax Return to record your residence and domicile status, and claim personal allowances as a non-UK resident.

 

I don't think there is any free work around for this on line.

That's why they ask you to buy software.

Or send a paper return via post.

 

 

[OJAS]

10 hours ago, OJAS said:

 

I personally use the free UK one with my Thai address, and no-one at HMRC has ever batted an eyelid! Whether you can do likewise, though, will depend on your particular circumstances. For example, it would become an issue should you ever sell your UK property, because CGT is calculated from a rebasement date of 6 April 2015 in the case of non-residents, but from a (presumably earlier) purchase date in the case of residents. I filed a paper return when this became an issue for me following the sale of my UK property 3 years ago.

 

Another potential problematical area which I have identified is if HMRC were to revive a proposal floated 10 years ago to abolish the personal tax-free allowance for non-residents - which, thankfully, was subsequently booted into the long grass. As far as I am concerned, though, this is a bridge to be crossed if and when we get to it.

 

 

@Kinnock - actually the more I think about it, there is probably no escaping the commercial software supplier route in your case in any event. As I understand things you will need to declare the rent from your UK property as assessable income in any tax return you file with the TRD here in Thailand and avoid any resultant double taxation through obtaining a tax credit from HMRC in accordance with Article 7 of the UK/Thailand Double Taxation Agreement. For this purpose HMRC will almost certainly insist on your filing a tax return with them which includes the non-residency info contained in commercial software if you choose to go down the online route.

[Kinnock]

Excellent information - thank you everyone!

 

I'll use the commercial software, and for 23/24 I may not have any tax in UK as I only had the property for a few months in that year.  This year they'll be tax, and I guess my UK Gov pension will also need to be included.

 

[topt]

5 hours ago, Kinnock said:

and I guess my UK Gov pension will also need to be included.

You are supposed to include any and all UK generated income including bank interest, dividends etc (but not capital gains other than property) even if, at the end of the day you don''t end up having to pay any tax.