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Topic: Ease of filing UK taxes  (Read 1348 times)

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Ease of filing UK taxes
« on: November 19, 2005, 09:31:50 AM »
Hi all,

Anyone care to comment on how difficult/easy it is to prepare the UK tax return oneself? I need to find out if I owe a return. And where do I pick up the forms- Is it in the post office?

Thanks!


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Re: Ease of filing UK taxes
« Reply #1 on: November 19, 2005, 12:09:46 PM »
You may not want to do it yourself if you have any of the following situations:

Recent move to UK on short-term contract (3 yrs or less anticipated stay) and still on US payroll.
Been here at least a year and brought money into the UK from outside the UK.

Assuming you are US citizen and UK resident, you are probably US domiciled.  You should seek expert advice regarding your domicile status, as having a UK domicile has a negative impact on your UK taxes.

1)  Do it online at http://www.glueserv.com/COI/IRV1649/ - easy peasy as the Brits say.
2)  If all you have is a P60, a bit of bank interest, and you are not a higher rate tax payer, you don't need to file in the UK (except if you had the wrong PAYE code and they owe you money).
3)  The UK tax year is Apr 6 - Apr 5, so the return for year end Apr 5 2005 is due 31 January 2006.
4)  If you owe massive wodges of dough (i.e., >£1,000) to the UK government, pay it and file 31 December 2005 instead.  It will give you some flexibility for creative tax work on your US tax returns.


I should talk.  I still haven't done mine yet!  I'm like the dentist with bad teeth and the doctor that smokes; too busy to sort my own out.

Liz Z i t z o w, EA
British American Tax


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Re: Ease of filing UK taxes
« Reply #2 on: November 19, 2005, 01:07:43 PM »

Hi, thanks for the quick response. I actually have dual citizenship so I've been working as a local thanks to my British passport since April 2004. Basically my goal is to see if I've overpaid to the UK, and then file, and if not, keep my mouth shut! : )


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Re: Ease of filing UK taxes
« Reply #3 on: November 19, 2005, 05:42:48 PM »
You're going to hate me for saying this, but the UK system of taxation changed while you were away.  They're on what they call "self assessment" now.  What this means is that you are personally responsible for letting the IR know that you have a balance due.  In the old days, you only had to file if (a) they asked you to or (b) you had a refund coming that you wanted to get.  Now you have to file when you owe, even if they don't ask you to.

You're more than likely UK domiciled, which means that you have to report any US income you received after you moved.

Good luck with the online programme, it's relatively easy and painless.
Liz Z i t z o w, EA
British American Tax


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Re: Ease of filing UK taxes
« Reply #4 on: November 22, 2005, 09:42:14 PM »
I'm selling my home here in Florida and want to use the $$ to purchase a home in the UK.  What, if anything, can I do.  It will be around $200K.  Will I get smacked hard with Taxes?
Thanks
Paul


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