Reply to: Offshore Disclocure

[meridian]

No, he is domiciled where he is domiciled (usually his country of birth). He has told us nothing that enables us to determine this



Only if he is non uk domiciled. If one is UK resident and domicilied the location of the funds is irrelevent.



You see to have mis-read everything. He said that he left the UK not moved to it.

tim

Do try to keep up, Tim, he's already told us he's an Aussie!

[tim123]

Sorry I'm late to this thread, but even if you lived in the UK you'd be non-domiciled, wouldn't you?.

No, he is domiciled where he is domiciled (usually his country of birth). He has told us nothing that enables us to determine this

Isle of Man is treated as "abroad" for domicile and taxation purposes so as long as you haven't remitted the funds back to the mainland you should be okay.

Only if he is non uk domiciled. If one is UK resident and domicilied the location of the funds is irrelevent.

Did you fill in form P86 when you arrived? I don't know if it's compulsory or not (I don't know anybody who's filled one in) but this would have told HMRC that you're non-domiciled at the time of your arrival.

You see to have mis-read everything. He said that he left the UK not moved to it.

tim

[tim123]

Thanks for all the responses. It seems to me there's a straight choice of whether to contact HMRC or wait and see if they send me a letter & also contact the bank & get them to amend/retract their info to HMRC. The latter is preferable simply from the point of view of "sticking the head above the parapet". Does anyone know what kind of info was supplied by the banks - was it balances or total interest or just names & addresses? If it's balances, then HMRC will see there is virtually nothing in there, and i was unemployed for the best part of the last 3 years i was in the UK. I have also been out of the UK for the last full tax year + half the other one. I also haven't done a UK tax return for the last few years i was there.

The new rule has a de minimus amount of (IIRC) 1500 pounds so I should just ignore it.

tim

[meridian]

Sorry I'm late to this thread, but even if you lived in the UK you'd be non-domiciled, wouldn't you?

Isle of Man is treated as "abroad" for domicile and taxation purposes so as long as you haven't remitted the funds back to the mainland you should be okay.

Did you fill in form P86 when you arrived? I don't know if it's compulsory or not (I don't know anybody who's filled one in) but this would have told HMRC that you're non-domiciled at the time of your arrival.

[Boots23]

Thanks for all the responses. It seems to me there's a straight choice of whether to contact HMRC or wait and see if they send me a letter & also contact the bank & get them to amend/retract their info to HMRC. The latter is preferable simply from the point of view of "sticking the head above the parapet". Does anyone know what kind of info was supplied by the banks - was it balances or total interest or just names & addresses? If it's balances, then HMRC will see there is virtually nothing in there, and i was unemployed for the best part of the last 3 years i was in the UK. I have also been out of the UK for the last full tax year + half the other one. I also haven't done a UK tax return for the last few years i was there.

[Spacecadet]

just seen this on the BBC News site:
http://news.bbc.co.uk/1/hi/business/6755965.stm

[rootsnall]

I get the impression from the OP that the £100 is all that HMRC know about at the moment. If they believe the OP is/was UK tax resident either now or in the past (which they must or they wouldn't have sent the letter), then they will be chasing their dues on all of the income earned during the period that they think the OP was tax resident, regardless of whether that money ever entered the UK.

http://www.direct.gov.uk/en/MoneyTax...UK/DG_10026234

Boots23 - this page defines the rules on if you are tax resident in the UK ? If you left permanently and didn't return for a full tax year ( and can prove it )then you aren't tax resident from the day you left.

Now if you left without tieing up your tax affairs here or there is more to it ( as CB says above ) then you might have something to worry about !? But even then if its peanuts then I doubt they'll bother you.

[Cowboy Bob]

Only if there is more to it than 100 quid in a semi dormant account. Interest on it will be 5 quid a year, tax on it 2 quid a year, it'll have to be cheap specialist advice to make it worthwhile !

I get the impression from the OP that the £100 is all that HMRC know about at the moment. If they believe the OP is/was UK tax resident either now or in the past (which they must or they wouldn't have sent the letter), then they will be chasing their dues on all of the income earned during the period that they think the OP was tax resident, regardless of whether that money ever entered the UK.

[rootsnall]

If you don't follow the correct procedure, it is possible to end up tax resident in two different countries and owe tax in both on the same income. Like I said, get specialist advice for this one.

Only if there is more to it than 100 quid in a semi dormant account. Interest on it will be 5 quid a year, tax on it 2 quid a year, it'll have to be cheap specialist advice to make it worthwhile !

[Cowboy Bob]

If you haven't been in the UK for over a full tax year then you won't be tax resident here.

Yes, but you will owe tax on income for the first 12 months - even if you're paying it in your new country of residence unless you fill in a P85 to declare yourself non-resident. And then, on top of that, you are only allowed to spend a certain number of days of the year in the UK or they will deem you to be resident again.

[Cowboy Bob]

Hmmm, that bothers me even more Cowboy. Surely if i have been away for several years i would automatically come under the local country's residency. Also i am not a UK citizen either - am Australian. I also filled in an Australian tax return last year.

If you don't follow the correct procedure, it is possible to end up tax resident in two different countries and owe tax in both on the same income. Like I said, get specialist advice for this one.

[rootsnall]

Hmmm, that bothers me even more Cowboy. Surely if i have been away for several years i would automatically come under the local country's residency. Also i am not a UK citizen either - am Australian. I also filled in an Australian tax return last year.

If you haven't been in the UK for over a full tax year then you won't be tax resident here.

[rootsnall]

Hi,

I recently received a letter from my bank in the Isle of Man saying they had supplied my details as someone resident in the UK with an offshore account to HMRC. I left the UK several years ago, and have not been resident for some time - the account was dormant with less than 100 punds in it.

My question is this - should i wait to see if i am contacted by HMRC regarding this, or contact them to tell them i am no longer resident in the UK? I'm concerned that they may hit me with penalties etc even though i am no longer resident and have nothing in the account.

Thanks

If you don't owe them anything, or it really is peanuts we are talking about ( come on now, be honest !? ) then I'd just contact them and get it cleared up. You can ring the Offshore Disclosure Facility helpline without giving your name, so I suggest you ask them. I don't think the P85 will be an issue but until you let them know what's going on then they may pick up the fact you haven't filled in a self assesment for the past few years. They'll also not know that you only had 100 quid in there unless you tell them.

[Boots23]

Hmmm, that bothers me even more Cowboy. Surely if i have been away for several years i would automatically come under the local country's residency. Also i am not a UK citizen either - am Australian. I also filled in an Australian tax return last year.

[Cowboy Bob]

No, no P85 was filled in - is that a problem? Is it worth filling in now, or should i just leave it? The only way they can send me a letter is if my bank gave a current address & that is outside the EU. Am just worried about the whole Offshore Disclosure and getting caught up in an investigation with HMRC and with the way they are being at present, their intransigence worries me!

If you didn't fill it in, then you are probably still officially UK tax resident, which means that HMRC are going to regard everything you hold in any non-UK bank account as "offshore". I'd get specialist advice on this as I don't know if you can just fill in the form now or not.