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Does DH need to register for self-assessment?

(16 Posts)
ChablisLover Mon 06-May-13 20:48:51

No probs

You'll not get into trouble but its an area that's rather grey and open to all interpretations.

Good Luck

Prometheus Mon 06-May-13 20:14:09

Oh crap...thank you for all the advice. He never told HMRC he was leaving the UK as when we left we were students and had no assets....just student loan debts. The savings and shares were from an inheritance and have sat in a UK bank account paying the normal tax deducted at source for the past 10 years.

Our salaries and savings abroad were fully taxed as normal in that country. I'm really hoping we don't get into trouble....we've paid tax on everything. and he has only been a higher rate tax payer for 1 week of the 2012-13 tax year so it would seem unfair to be taxed higher for the other 51 weeks.

Will find an accountant!

ChablisLover Mon 06-May-13 16:42:52

Also, more thoughs. apologies if it is bombarding with info. There's also the split year treatment but that's mainly for non residents coming and leaving uk.

As he is British it complicates things as it would need to be ascertained if he was ever declared non resident for tax purposes. Did he ever declare himself non resident when you left the uk?

If you retained ties to the uk eg houses, Bank accounts even family ties now are taken into account. etc it may be that he would always have been uk resident for tax purposes.

It's not an easy area to work through. And has been complicated by recent tax cases. Really go and see a tax adviser to talk through all the aspects. If you go to www.tax.org the chartered institute of tax website there a bit where you can find a qualified adviser in your area.

ChablisLover Mon 06-May-13 15:19:02

Would also advise for him to contact hmrc and advise them if his situation and they can advise as to how to proceed.

ChablisLover Mon 06-May-13 15:17:23

If he's consider resident or ordinarily resident by hmrc he will have to declare all income

He can claim relief on tax already suffered in the European country. Ie the tax he's already paid converted to sterling

I would recommend Maybe seeing a local accountant or tax specialist so they can advise on your circumstances.

But IMO he needs to do tax return including all income as he is uk resident and claim credit for sterling equivalent on tax already paid.

Also if we have higher tax rates than the country you lived in before - an additional liability may arise.

You will not receive any refunds though if your dh has paid more tax in eu than he would have done here.

Prometheus Mon 06-May-13 11:53:21

But we lived abroad for the previous years and he was taxed on worldwide income in that country.....although as he wasn't a UK taxpayer for the year for salary I guess his savings interest and dividends income will be well below the personal allowance. It is so confusing.

ChablisLover Mon 06-May-13 10:52:48

You'll need to include all income for the tax year not just the final week.

So you'll pay the additional tax on all savings income as savings income is taxed after employment income.

Prometheus Mon 06-May-13 10:15:13

Thank you very much for all the answers. so just to clarify, he needs to register for self assessment to pay the additional tax on his savings interest and dividends. He needs to complete a form this year (online deadline Jan 2014) which would just cover the final week of the tax year 2012-13.

Silly question but how do we work out the interest on savings and dividend income for that one week? I'm guessing it would be about 5 pence interest and no dividends if we didn't receive any of our usual £30 cheques that week?

Thank you!

LIZS Sun 05-May-13 10:16:37

100k (including bonuses and benefits) is the cut off point for a £1 for £2 adjustment for personal allowance. Yes he should call HMRC office and register, not least because last year (April 2012-13) he earned most of his income elsewhere and may have overpaid UK tax in that final week. Return can be done any time between now and October (on paper) or end January (online)

ChablisLover Sun 05-May-13 10:11:58

A p810 isn't the right form.

He'll need self assessment but consider moving assets to take advantage of your lower income.

ChablisLover Sun 05-May-13 10:10:17

Anyone can register for self assessment.

If you have savings dividends or rental income you will need to pay the additional tax on it.

Remember if still considered resident for tax purposes you will need to include worldwide income to accurately get the tax right

MrAnchovy Sat 04-May-13 23:01:07

He needs to register for self assessment because of the dividend and savings income. If he gifted the shares to you and the savings account isin joint names the tax bill will be much reduced; get an accountant.

specialsubject Sat 04-May-13 22:42:32

erggg.... the bank/building society will work out your interest and pay accordingly. You then pay extra tax on that interest.

just a reminder that if this is more than 85k, split it between banking licences.

and with current interest rates, don't get too excited.

Prometheus Sat 04-May-13 21:04:43

Eek...I was looking here where it says 'who needs to fill in a self assessment form': http://www.hmrc.gov.uk/sa/need-tax-return.htm#1

What you say sounds correct. So higher rate taxpayers need to request a P810 form and not self assessment? Our savings are for a house deposit and only likely to be savings for a few months - will they take that into account i.e. only pay additional tax on the annual interest that is pro-rated for when we actually had the cash before it was spent?

specialsubject Sat 04-May-13 20:55:34

news to me about £100k income...

what I see on the HMRC site is this:

http://www.hmrc.gov.uk/taxon/bank.htm

and he needs to ask for a P810 form.

self-assessment will be needed if you rent out a property, are self-employed or for some other reasons. For just this, looks like the form will do.

but I'm not HMRC! :-)

Prometheus Sat 04-May-13 19:59:06

We've just moved to the UK from a European country but are British and have UK savings and shares. DH started work on 1 April and earns circa £80,000. I'm a SAHM. I think he needs to register for self-assessment so he can pay additional tax on savings interest and dividends but I've just looked at HMRC website and its says that you need to have an annual income of £100,000 to register.

His savings interest and dividend income is maybe £2,000 per year so it doesn't take him up to £100,000. Does he need to register? And if so will he need to complete a return this year for income after 1 April 2013 or is it done retrospectively (i.e. do the 2012 income return in 2013)? Thank you!

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