I am dual US/UK citizen and have primary home in US but was in UK long enough in 2019-2020 to trigger residency - so I got UK taxes filed ( by a pro)
I stayed in US for 2020-2021 so was NOT UK resident last year but need to file anyway.
I though I would give ABC software a try to see if I could file myself but am surprised by what it is doing. Here is my test.
Started a new return
checked foreign pages, residence pages
Added 20,000 of USA foreign interest income
ABC shows £2800 owed at top of page
In Residence Pages I checked box 1 'not resident for 2020-21' but £2800 tax did not go away
When I set my country of residence as USA the tax reduced to £300 - NOT Zero!
I tried various residence boxes to make the tax go away and none did.
The only way I could make the tax go away was to claim it back using dual tax agreement boxes 20-22 and that was strange in that if I claimed say £500 then ABC said that HMRC owed me £200 ( 300 - 500)!
This process suggests that the way to make the tax go away is is to claim the US taxable amount back which means I have to do the work to document the actual income(s) and taxes paid in US etc. Why it allows me to claim a refund from HMRC seems really strange.
I was expecting that no UK income and only US income would simply zero it out when I checked 'Not resident' ( not matter what country I was living in)
Is this the way it should happen or is ABC software getting it wrong ?