I have income from abroad do i report it to HMRC?
I have income from abroad Do i report it to HMRC? In the time of pandemic as the economic uncertainty continues the last thing anyone can think of is giving away money to HMRC in the form of penalty. The deadline to submit Self- Assessment tax return is 31 Jan 2021. You can pay your tax bill till 31 Jan 2020, however it is always a good idea to start filing the return early and make the payment before the deadline in order to avoid any delays in the payments which can incur a penalty. Even if you are thinking of paying the penalty over the phone its always better to do it early than when the deadline is near as HMRC call centre is very busy at that time. HAVE YOU INCLUDED ANY INCOME FROM ABROAD IN YOUR SELF-ASSESSMENT TAX RETURN? If you had any foreign income and you were UK resident you should report it to HMRC by filling self-assessment tax return and pay UK tax on it. You can do this by registering yourself for self-assessment, you should have done this by 5th October. In case you have missed the deadline you might incur a penalty, however, if you have a valid reason you can appeal against it. UK RESIDENT OR NOT? If you want to know you are a UK resident or not you should ask yourself 2 simple questions: 1. Did I spend 183 or more days in UK? 2. Did I have a home in UK –and did I spend at least 1 month (30 days) in the tax year in the home which I bought or rented in UK for at least 3 months (91 days)? If the answer to any of the above questions is yes then you are a UK resident and you will be filling in the self-assessment tax return and paying tax. FOREIGN INCOME Foreign income will include rental property, any online sales, and dividends from foreign investments for example if you have invested in shares or you have income coming from different funds. IF THE ONLY FOREIGN INCOME THAT YOU HAVE IS DIVIDENDS There is an exception when you do not have to fill in the self-assessment tax return If you have invested in shares abroad but all of the following apply then you do not have to register and fill in the self-assessment form: If your only foreign income is dividends and your total dividends which also includes your UK dividends are less than £ 2000 you do not have to fill in the self-assessment tax return provided you do not have any other income (foreign or UK income ) to report. HOW CAN WE HELP YOU? We at Taxaccolega, have an expert team of accountants. If you want any advice on personal taxes please free to contact us. We can advise you, prepare accounts and file your returns on time. If you have received any penalty and you want to appeal against it we can do it for you. Call us at 020 8127 0728 and we will be happy to help you. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
How will VAT change after Brexit?
How will VAT change after Brexit? As the transition period of Brexit is coming to an end in Jan 2021, it`s time that businesses who are dealing with EU countries should start to look at the changes that will follow and get their businesses ready for the change. Although the government has tried its best to minimise the impact of Brexit on sales, the no-deal Brexit will affect the way the business in many ways including how VAT is charged. This is because the UK will probably no longer be part of the EU VAT area. VAT AND LOCAL BUSINESS If you are a VAT registered business and you are selling goods and services, hiring or loaning goods to someone, selling business assets, or even providing canteen meals to your employees you charge VAT on the items you are selling. A VAT registered business can also reclaim any VAT on the business-related purchases. A standard rate of 20 % will be charged on the sales unless the goods supplied come under the list of ‘zero-rated’ or ‘reduced’ supplies. Following Brexit, the rules for VAT will remain the same for the local businesses. HOW VAT IS CHARGED CURRENTLY ON THE SALES TO THE EU COUNTRIES? Dispatches/ Exports: If VAT able supplies are supplied to a VAT registered business in an EU country by a VAT registered business in the UK, the sale is considered a ‘zero rate’ sale, and this is known as a `dispatch`. It will be considered an ‘export’ if the supplies are made to a VAT registered business in a non-EU country by a VAT registered business in the UK. VAT will be charged at a zero rate in both EU and non-EU countries. Distance selling: If a UK VAT registered business is selling VAT able supplies to an EU member country that is not registered for VAT this is known as distance selling. UK rates will be charged on the sales made to these countries although there is a threshold for each country and UK businesses will need to register for VAT in that country once that threshold has passed. HOW THE VAT CHARGED WILL BE CHANGED AFTER BREXIT? Dispatches/ Exports: Following the Brexit, although sales to EU countries will be called exports and the UK businesses will no longer report the EC sales list in their VAT return. Distance Selling: Following Brexit, the rules for distance selling will no longer apply and UK businesses will zero-rate these supplies. The Customer in the EU country will pay local VAT. VAT REFUNDS FROM 1 JAN 2021 If you have incurred any expenses in the EU member state before 1 January 2020, you will be able to claim a refund through the EU VAT refund system. HOW CAN WE HELP? If you are doing business with EU countries and you are not sure how Brexit will apply to your business, you can contact Taxaccolega at 020 8127 0728 and we can advise you depending on the type of business that you have. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
UK Rental Income: How to Calculate and Report Profit or Loss
How to calculate and Report them? Profits and Losses from UK Rental If you have rented a property in the UK, you should declare it to HMRC and pay tax on your profits. If you rent a property abroad and you are a UK resident you should be paying tax on it as well but the profits and losses on the rental income from overseas property should be done separately. WHAT TO DO IF I HAVE PROFITS? If you have profited from your rental income, you should report it to HMRC in the self-assessment tax return. You should register yourself by 5 Oct following the tax year you had rental income and pay tax on it. WHAT TO DO IF I AM HAVING A LOSS ON MY RENTAL PROPERTY? If you rent a property and it is making losses you are not required to declare it to HMRC unless you are already required to fill in the self-assessment tax return for some other reason. If you are self-employed and you are already required to fill in the self-assessment tax return because you might be self-employed and running your own business then you should declare your income from all the sources even if it making a loss. However, it should be noted that the loss from the property business cannot be offset against the gain from any other business. It can only be offset either against the gains from the property business in the same tax year or carried forward against the future gains from the same property business. It is therefore advised that even if the property is making a loss it should be declared to HMRC so that the losses can be automatically carried forward and the loss figure is not challenged by HMRC. For example, if you have 2 rental properties one is making a profit and the other one is making a loss you should declare both to the HMRC. CALCULATING PROFIT It is very important to know how the profit figure is calculated. Income Expenses Profit/ Loss Property 1 1000 500 500 Property 2 2200 1200 1000 Property 3 750 800 -50 Total Income 3950 2500 1450 If the ‘overall figure’ from your property business is a profit you will pay tax on it as in the example above and you will be paying tax on it. The tax you pay will depend on the tax rate band that you fall into. When you have income from other sources for example from employment, self-employment, or any other investment you have to add them all together. Each year every individual is given a free allowance of £12, 500. Up to this amount an individual does not have to pay any income tax. Tax is paid at the rate of basic rate 20% (£12, 501- 50 000), higher rate 40% (£50 001- £ 150 000), Additional rate of 45% (over £150, 000). The first £1000 of your income from your rental property is tax-free this is called property allowance. You will pay tax on the income above this. If you are looking for accountants in Croydon please free to contact Taxaccolega at 020 8127 0728. We have an expert team of property accountants dealing with the renting and sale of a property. We can advise you in all sorts of areas such as Capital Gains Tax, Inheritance Tax, and Stamp Duty Land Tax. For queries message us here or email us at [email protected] and we will get back to you. Sources: https://www.gov.uk/renting-out-a-property/paying-tax CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *