You might think that when you escape the UK for a sunnier corner of the world, you also escape HMRC. Unfortunately this couldn’t be further for the truth, so you’ll need to spend a couple of minutes reading our handy 2 minute guide…
UK Tax Returns: A Simple 2 Minute Guide to UK tax returns
Why Might I Still Have to Pay Tax?
UK tax returns are a complex business, which is why it pays to get them right the first time. Tax is often spoken of as ‘the price we pay for a civilised’ society,’ and when you think of it like that it makes a little more sense why you might have to pay it.
Student loans are a great example. You’ve had the benefit of a subsidised education, and now you need to pay a portion of it back as you start to earn more.
How Do I Establish My Tax Residence Status?
This is the most crucial part, and it’s at this point that it’s vital you speak to a qualified accountant. Googling around is all well and good, but the tax system is notoriously complex. Take the time to speak to someone in the know, and you’ll be able to sleep with the peace of mind that only comes from knowing you’ve got everything in order from day one.
If I’m Not a UK Tax Resident, Will I Still Have to File a Tax Return?
If you’re not deemed a UK tax resident, you will still sometimes have to file a return even though you don’t pay tax. A common instance of this occurring would be if you receive income from rental property. As with the last point though, ask an accountant and not Siri.
Could I Be Subject to Penalties?
Yes, you can! If you’re just one day late with your tax return then you will be fined £100. Certainly not worth it when you think you have an entire year to get everything sorted out!
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