Find out all the essential details you need to make sure you’re fully tax compliant and not stuck with any penalties.
As an expat it can be more difficult to deal with your UK tax affairs simply because you are not living in the UK getting the regular reminders from the tax office on what you need to do and when.
The reasons why a UK expat would need to fill in a self assessment tax return are multiple and it’s always best to check if you meet self assessment criteria in each tax year before you submit your return. This is especially the case for UK non residency tax matters which can change depending on your own set of circumstances and HMRC legislation.
What could I get fined for?
It is very important to know the answer to this question, as it could literally save you hundreds sometimes thousands of pounds. If you miss any HMRC deadline regarding filing your tax return or paying your UK tax bill, you will be given a financial penalty. These include fixed fines for missing the deadline, daily cumulative amounts and interest on the tax you owe.
Leaving the UK is not a valid reason for not meeting your obligations under self assessment so to avoid this unnecessary waste of your money, get the relevant dates marked on your calendar and calculate how long before the deadline you need to get everything in order.
Self assessment tax return deadlines
• Paper self assessment tax return: by 31st October (the following financial year)
• Online self assessment tax return: by midnight on 31st January
Tax bill payment deadlines
• Balancing tax payment: midnight, 31st January. Applies to both paper and online submissions
• First payment on account for following year: 31st January
• Second payment on account for following year: 31st July
How much are the penalties?
The amount you can be fined varies depending on which deadline you have missed and how long it takes you to rectify the situation.
Missing the deadline for tax return submission
• £100 automatic fine, whether you’ve paid your tax bill or not (and even if you don’t actually owe any tax)
• 3 months after the deadline: daily £10 fine until it is submitted, up to £900
• 6 months after the deadline: extra fines are added; either £300 or 5% of your tax bill (whichever is the bigger amount)
• 12 months after the deadline: more penalties are added on top of the rest; either 5% of your tax bill or £300
• Very serious cases can end up with a fine equating to 100% of your tax bill
Late paying your tax bill
• 30 days: 5% of tax bill
• 6 months late: another 5% tax bill
• 12 months late: another 5% tax owed
You will also be charged interest on the outstanding tax and unpaid fines you owe until your bill is settled in full.
