To : All expatriates with a UK filing obligation
The deadline for filing 2021/22 UK tax returns is 31 January 2023, and now is no time to worry about this. Time for action ! And there are many ways to reduce your stresses – you will see I have prepared a brief list of options.
January - Avoiding UK Tax Return Stresses
PROCESS
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- Appoint someone else, like a tax advisor, to prepare and file UK your return. Or there alternatives solutions if you “DIY”.
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- Make a diary note (now) for October 2023 that you will hand over your tax return to a tax accountant early on ( your next 23/24) to minimise stress next year.
TAX SOFTWARE
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- If you are doing your own tax return this year, do you have the right tax software ? HMRC do not always have what you need. They refer you to third parties.
MANAGING THE PROCESS
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- Are you HMRC formally registered to file UK tax returns ? This is a separate process which is obligatory. HMRC provide a website for filing “SA1” forms but take care as to how you complete it. There is a method here.
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- Remember that there are no filing extensions in the UK. You must report to the best of your efforts, the total required data, by the agreed deadline. (This can serve as a stress release ultimately).
PREPARING DATA
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- Understand what is required from you eg all of your foreign income ? All of your investments globally ? All of your travel details ? Ask AN ACCOUNTANT for a tax questionnaire, covering all matters.
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- What if you are wholly unable to obtain certain information ? A tax expert, like me or a solid colleague, will help you through this. I have a great team in Surrey/London whom we share our practice with.
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- Accept that, with less than one month to go, you will need to estimate some numbers for your return. AND where you are unsure, you deduct 30% from your estimates; to avoid any HMRC challenges or issues.
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- Where to go to obtain extra information ? The following teams and places are likely to hold the extra data required : your bank, your HR team, company payroll, your accountant from last year, your share scheme/HR teams at head office.
The Benefits of Filing UK Tax returns
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- You can avoid tax penalties which can escalate to £1200 during 2023.
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- HMRC will record you as a taxpayer who filed on time, which is in your favour. Shows you are compliant in your HMRC records.
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- Tax refunds unexpected ones – you may be sitting on a rebate you were unaware of.
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- OR Settling taxes due – best to settle a debt with HMRC than for it to drift. It will accrue interest and create the wrong image with HMRC. That counts.
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- You will order all of your tax affairs and anticipate future tax costs eg crypto trading notoriously easy to lose track of thousands of buy/sells.
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- A tax return can trigger other benefits – your tax advisor will see other rewards and tax breaks.
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- The end of stress and worry (until you hand over your full data pack to an advisor next autumn/”fall” 🙂
