How to File UK Tax Return as a Non-Resident with Rental Income: A Comprehensive Guide

As a non-resident with UK rental income, you might wonder which software to use when filing your tax return in the UK. Fortunately, there are several options available, and this guide will walk you through the process, including using our TaxScouts service if needed.

Using TaxScouts for Filing Your UK Property Tax Return

For those looking for assistance, TaxScouts can greatly simplify the process. To learn more about our services, visit our page.

Step-by-Step Process for Filing Your UK Self Assessment

1. Apply for your Unique Taxpayer Reference (UTR): This is a necessary step before you can file your tax return. You can apply for a UTR on the HMRC website or by mail. To expedite the process, consider using the address of a friend or relative in the UK as a proxy for the initial application.

2. Register for an Online Account: Once you have your UTR, you will need to register for an online account with the Government Gateway. This account will allow you to access the HMRC Self Assessment portal.

3. File Your Return: After registering, you can proceed to file your tax return. Make sure to complete the process before the deadline to avoid any penalties. If you encounter delays due to the current coronavirus situation, it may be useful to send your application via someone in the UK to avoid postal delays.

4. Addressing the HMRC Address Requirement: If you live outside the UK, you may need to trick the HMRC address requirements. Enter a UK post code when prompted, but edit it away in a later step to ensure that the paperwork goes to the correct address.

Alternative Methods for Filing Your Tax Return

If you prefer not to use software or online tools, you can always call HMRC for guidance. Alternatively, you can visit the HMRC website to find out how to file your tax return manually.

Software Options for Filing Your Tax Return

While you don’t strictly need any software, many people find it helpful to use them. Here are some options you might consider:

Standard Excel: This is a basic and cost-effective option if you have some Excel skills. Sage Mind: A user-friendly software that caters to small businesses. It can help you manage various aspects of your self-assessment, including rental income. You Own Business: A specialized tax return software that is well-regarded in some quarters. It is actually a real product from Australia, and many have found it reliable for handling complex tax scenarios.

Simplified Filing for Rental Income

If you prefer a more streamlined approach, some software programs can handle the entire process for you. For example, using the HMRC’s online tool itself can simplify the filing process. Simply input your details, and the system will calculate your tax liability.

Bonus Tip: Notification of Sale of UK Rental Property

It is important to notify HMRC in a timely manner if you sell your UK rental property while abroad. You must inform them within 30 days of the sale to avoid penalties. This is a legal requirement, and neither your estate agent nor solicitor should be an excuse. Ignorance of the law is no reason not to comply with it.

By following these steps and utilizing the right tools, you can effectively manage your UK tax return as a non-resident with rental income. Remember, staying informed and organized is key to a smooth filing process. Good luck!