Category Archives: Tax in UK and Australia

2018 UK Tax Returns Late Filing Penalties – £10.00 per day penalties to be avoided

Should you have missed the 31 January 2019 filing deadline you will have automatically received a late filing penalty of £100.00.

If your return is still outstanding as at 30th April 2019 a further penalty of £300.00 will be incurred and £10.00 daily penalties will commence from 1st May for up to 90 days or until submitted.

Act now to avoid incurring additional late filing penalties, we at GM Tax can assist you with your electronic submission of your UK Tax Return.

How do I register for Self Assessment

Should you need to lodge a UK Tax Return with HMRC and this is your first time you will need to register for Self Assessment, how you do so depends on your circumstances. You can use a form SA1 if you need to register but you’re not self-employed. For example, if you:

* become a company director

* receive income from land and property in the UK whether you are a tax resident or a non tax resident

* have taxable foreign income of more than £300 a year

* receive yearly income from a trust or settlement

* sell shares as a tax resident or sell a residential property as a non resident or tax resident or other assets liable to Capital Gains Tax

* have yearly income over £100,000

* have untaxed income that can’t be collected through your PAYE tax code

* have income over £50,000 and you or your partner carry on receiving Child Benefit payments

* have Capital Gains Tax or Income Tax to pay

Please contact an office local to you should you require any assistance with your UK Tax Return or registering for Self Assessment or alternatively you can submit an online enquiry via our website.

 

Do I need to do a UK Tax Return?

Yes you will need to lodge a UK Tax Return for the period 6th April – 5th April if you were:

* self-employed as a ‘sole trader’ and earned more than £1,000

* a partner in a business partnership

* a director of a UK Limited Company

You will not usually need to send a return if your only income is from your wages or pension and your income is taxed at source or covered by your personal allowance. However, you may need to send a Tax Return to HMRC if you have any other untaxed income, such as:

* money from renting out a property

* tips and commission

* income from savings, investments and dividends

* foreign income

Please contact an office local to you should you require any assistance with your UK Tax Return or alternatively you can submit an online enquiry via our website.

Proposed changes announced in 2018 to Principle Private Residence & Letting Relief

These changes to capital gains tax (CGT) are due to come into effect from 6 April 2020, but there will be a consultation on the details first.

From April 2020:

* Lettings relief will only be available to those who are in shared occupancy with a tenant.

* The final period exemption allowing Principle Private Residency exemption for the last 18 months of ownership as long as the property qualified for PRR at some point, will be reduced to 9 months.

* The final period exemption will remain 36 months for those who move into care and for disabled persons.

https://www.gov.uk/government/publications/private-residence-relief-budget-2018-brief

Changes with regard to rollover and accessing benefits from a QROPS

Following the transfer of UK sourced pension money to an Australian QROPS, it is then within the Australian superannuation system and will be covered by the Australian rules. However, upon withdrawal or rollover to another superannuation fund, UK tax charges may still apply to the money.

There are two different tests for this. Which one should be used depends on when the transfer of the UK pension money to the QROPS took place.

If it was before 6 April 2017 then UK tax rules will still apply if the member:-

Ø at the time of the rollover or withdrawal is tax resident in the UK or had been earlier in that UK tax year or in any of the 5 preceding UK tax years

If it was on or after 6 April 2017 then UK tax rules will still apply if the member:-

a. at the time of the rollover or withdrawal is tax resident in the UK or had been earlier in that UK tax year or in any of the 10 preceding UK tax years, or

b. a period of 5 years has not passed since the transfer of UK pension money to the QROPS took place.

If UK tax rules do not apply under the above tests, then a rollover of UK sourced pension money to a non-QROPS or a withdrawal by the member can be done without incurring UK tax.