Personal allowance on taxable income.

[CFCjeff]

Hi Guys,

I live here full time, but have a flat in the UK that i rent out, this is my only income. My income from the flat after expenses was only 4250 pounds, so i didnt think i was liable for any tax.

I have now received a tax demand for 850 pounds, so it would seem that i dont qualify for my personal allowance. Is this the case for expats living in thailand ?

To be honest i didnt even realise i had to send in a tax return, but this seems so unfair, and it hardly makes it worth renting the flat out if the the taxmen wants 20% every year.

Has anybody got anymore information on this subject, trying to get in touch with the tax office by phone is near on impossible and probably very expensive whilst waiting to get through.

Many thanks.

[JohnC]

That demand equates to basic rate of 20%, they are assuming you have other income using your allowance, ask for a tax return and file it to them. You can call them , add 003 before the 44 and you get cheap rate calls.

[CFCjeff]

That demand equates to basic rate of 20%, they are assuming you have other income using your allowance, ask for a tax return and file it to them. You can call them , add 003 before the 44 and you get cheap rate calls.

I have filed a tax return, i did it when i was in England in October. I made it quite clear the rent was my only income, so i didnt expect a tax demand assuming i would have my personal allowance.

[meatboy]

my wife up until last yr.filled in a tax return on rent received on her property in the uk.around 6,000gbp.no tax to pay as it was a lot less than her personel allowance.fill in the forms and any exs.eg.house insurance,gas check,same with electrical apliance,agents fees and any repair bills.

this also was her only income.

[salavan]

if i remember correctly osbourn was going to abolish personal allowance for non residents in the 2015 autumn budget but postponed it until 2017, i would like to hear from anyone else that has any information on this maybe they have brought it forward, i for one will be seriously thinking about selling my uk property and taking the money out of the country

[nong38]

Buying to let always seemed to be a good idea to boost income in retirement and a lot went down that road, if only people had known what was going to happen in the future with Osborne looking for more taxes would they have done that? He has raised personal allowances but under pressure from the Lib Dems in the past but now the increases will be smaller. He has given some something back in that dividend payments will be exempt from tax for the first £6000? This could all change at the drop of a hat of course and the decisions we take are more concrete and not so easy get out of quickly. Either way at the present time we have the personal allowance then we have to see what our income is from all sources except ISAs, I see they are now targeting ebay sellers as well, the noose tightens.

[topt]

That demand equates to basic rate of 20%, they are assuming you have other income using your allowance, ask for a tax return and file it to them. You can call them , add 003 before the 44 and you get cheap rate calls.

I have filed a tax return, i did it when i was in England in October. I made it quite clear the rent was my only income, so i didnt expect a tax demand assuming i would have my personal allowance.

Do you have a pension?

If not then you are correct except that as a landlord living abroad whoever pays you should be withholding the tax, unless you have permission from the tax man to have your rent paid gross, and then claim it back. You need to contact them and sort it out.

As to cost of contacting them use Skype credit or something similar and it should not cost that much.

Also are you officially non resident for tax in HMRC's eyes - although that only makes a difference to the absentee landlord bit in this case

[alfieconn]

if i remember correctly osbourn was going to abolish personal allowance for non residents in the 2015 autumn budget but postponed it until 2017, i would like to hear from anyone else that has any information on this maybe they have brought it forward, i for one will be seriously thinking about selling my uk property and taking the money out of the country

To be fair, if they take away the Personal Tax Allowance that only equates to approx 2,120 gbp a year so i don't suppose it will affect people too much !

[steve187]

what tax year are you talking about.

you should have applied for a tax exemption from tha tax man, otherwise tax should have been stopped by the agent, or even by the tenants if no agent.

[JAS21]

That demand equates to basic rate of 20%, they are assuming you have other income using your allowance, ask for a tax return and file it to them. You can call them , add 003 before the 44 and you get cheap rate calls.

I have filed a tax return, i did it when i was in England in October. I made it quite clear the rent was my only income, so i didnt expect a tax demand assuming i would have my personal allowance.

I believe that it is something to do with how you filled in your tax form.

I do mine electronically and have to fill in certain boxes and put THA in one box else I don't get my tax allowance.

Sorry I cannot access my form now as am away from home. Might not be back in BK until the New Yesr ...I'll look up what to fill in where then and post.

Edited December 20, 2015 by JAS21

[CFCjeff]

I don t get a pension yet, and signed up to the non resident landlord scheme, so the letting agents dont tax me on my rental income. If they havent scrapped the allowance, either i have filled one of the forms incorrectly or they have made a mistake, but i did make my situation quite clear on the yax return. I have emailed them and awaiting reply so i will get back to you. But it does seem gossly unfair that on an income of just 4250 pounds they are going to take 20% !!! This is for year 14-15.

In case you were wondering how i get by, i live in deep issan with my wife, we have no rent, electic and water is about 10 pounds a month and the wife works.

[salavan]

I don t get a pension yet, and signed up to the non resident landlord scheme, so the letting agents dont tax me on my rental income. If they havent scrapped the allowance, either i have filled one of the forms incorrectly or they have made a mistake, but i did make my situation quite clear on the yax return. I have emailed them and awaiting reply so i will get back to you. But it does seem gossly unfair that on an income of just 4250 pounds they are going to take 20% !!! This is for year 14-15.

In case you were wondering how i get by, i live in deep issan with my wife, we have no rent, electic and water is about 10 pounds a month and the wife works.

im in exactly the same position as you CFCjeff

[AyG]

it would seem that i dont qualify for my personal allowance.

It's not that you don't qualify for a personal allowance, but as an expat it's not automatically given - you have to claim it.

If you haven't done so already, complete a tax return for the relevant year including the SA109 supplemental pages for non-residents. (The SA109 pages can't be completed online using the HMRC website, so you'll probably have to submit a paper return.)

If you have already completed a return but didn't include the SA109 you can write to them (with real signature) to claim your personal allowance and to ask them to recalculate the tax.