UK Non-resident Landlord self-assessment

[Wales4rugbyWC23]

Unfortunately my wife doesn’t have a National Insurance number so no option for us to do it online (and no tax free allowance either!)

From memory when I did my last gateway online tax return, a national insurance might not be a prerequisite to do an online tax return. I do not mind being corrected.

Having a national insurance number does help though, my non-Brit wife, but EU citizen got one when she was there looking after our kids when they were going to the UK schools for a year.

[Wales4rugbyWC23]

I just googled my own question and it looks like your can only do if for years you a resident in the UK.

Only do what? Pay into the UK state pension? You can pay voluntarily for as long as you want, also back-pay to some extent, as long as you paid national insurance for a minimum number of years while you lived there. This is irrespective of nationality, so some Japanese spouses can and do pay into the UK state pension from Japan.

It is a very good deal for Japanese spouses, at current exchange rates it is worth three time the value of the Japanese state pension and a lot more sustainable.

[Deep Blue]

Unfortunately my wife doesn’t have a National Insurance number so no option for us to do it online (and no tax free allowance either!)

From memory when I did my last gateway online tax return, a national insurance might not be a prerequisite to do an online tax return. I do not mind being corrected.

Having a national insurance number does help though, my non-Brit wife, but EU citizen got one when she was there looking after our kids when they were going to the UK schools for a year.

I’ll try again, maybe it’s changed.

[Bubblegun]

Sorry to jump in here.
UK landlord too.I had to rent out my house and change it when I was in Japan to a buy-to-let mortgage.

So how do I do this exactly.
Do I take all the money deposited into my bank account in the UK, and tell the tax office it is in the UK bank?

If so, is there any tax-free elements? and most importantly has this ever impacted your taxes here in Japan?

Also since some of us weren't fully aware of this, any penalties?

And also since it was supposed to be my home for when i return, how is this going to punish me once the WHOLE Mortgae is cleared. Because as you know MOST buy to let mortgages maybe interest only and not paying the capital off, until they sell up.


Thank you.

[Wales4rugbyWC23]

Sorry to jump in here.
UK landlord too.I had to rent out my house and change it when I was in Japan to a buy-to-let mortgage.

So how do I do this exactly.
Do I take all the money deposited into my bank account in the UK, and tell the tax office it is in the UK bank?

If so, is there any tax-free elements? and most importantly has this ever impacted your taxes here in Japan?

Also since some of us weren't fully aware of this, any penalties?

And also since it was supposed to be my home for when i return, how is this going to punish me once the WHOLE Mortgae is cleared. Because as you know MOST buy to let mortgages maybe interest only and not paying the capital off, until they sell up.


Thank you.

You are supposed to report it both to the HMRC and the Japanese tax office.

HMRC, it is best to set up a gateway account and you can submit a tax return through that, or you can do a paper form. If you collect under about 12000 pounds, UK tax free allowance you do not need to pay any income taxes. Ground rent, letting agent fees, management fees and a few other things are allowed to be deducted, but crucially mortgage interest is not tax deductible. They got rid of that a couple of years ago. I think the UK tax return is not too challenging and you can easily do it yourself.

Japanese tax office, personally I use a Japanese accountant- so I do not know in detail and the way to submit it, because she does all the paper filling for me. However, mortgage interest is tax deductible. I am sure there are more knowledgeable people on this forum who know what to do with submitting it.

[Bubblegun]

You are supposed to report it both to the HMRC and the Japanese tax office.

HMRC, it is best to set up a gateway account and you can submit a tax return through that, or you can do a paper form. If you collect under about 12000 pounds, UK tax free allowance you do not need to pay any income taxes. Ground rent, letting agent fees, management fees and a few other things are allowed to be deducted, but crucially mortgage interest is not tax deductible. They got rid of that a couple of years ago. I think the UK tax return is not too challenging and you can easily do it yourself.

Japanese tax office, personally I use a Japanese accountant- so I do not know in detail and the way to submit it, because she does all the paper filling for me. However, mortgage interest is tax deductible. I am sure there are more knowledgeable people on this forum who know what to do with submitting it.

I’ve done all my taxes via gateway so no problem there. It’s fully managed and I basically deal with repair and legal authorisation requests.

[Wales4rugbyWC23]

Sorry to jump in here.
UK landlord too.I had to rent out my house and change it when I was in Japan to a buy-to-let mortgage.

So how do I do this exactly.
Do I take all the money deposited into my bank account in the UK, and tell the tax office it is in the UK bank?

If so, is there any tax-free elements? and most importantly has this ever impacted your taxes here in Japan?

Also since some of us weren't fully aware of this, any penalties?

And also since it was supposed to be my home for when i return, how is this going to punish me once the WHOLE Mortgae is cleared. Because as you know MOST buy to let mortgages maybe interest only and not paying the capital off, until they sell up.


Thank you.

You are supposed to report it both to the HMRC and the Japanese tax office.

HMRC, it is best to set up a gateway account and you can submit a tax return through that, or you can do a paper form. If you collect under about 12000 pounds, UK tax free allowance you do not need to pay any income taxes. Ground rent, letting agent fees, management fees and a few other things are allowed to be deducted, but crucially mortgage interest is not tax deductible. They got rid of that a couple of years ago. I think the UK tax return is not too challenging and you can easily do it yourself.

Japanese tax office, personally I use a Japanese accountant- so I do not know in detail and the way to submit it, because she does all the paper filling for me. However, mortgage interest is tax deductible. I am sure there are more knowledgeable people on this forum who know what to do with submitting it.

Your second half of your question about the Japanese tax office. Yes, I think if you set it up correctly you can have quite an impact on your Japanese income level. There are a lot more deductible items with reported rental income in Japan than the UK. Mortgage interest and depreciation being the big two. I strongly recommend you go through a Japanese accountant to do this. It gets quite complicated, and the tax office want more information from you than HMRC for example they want to your tenant's name and building materials.

[Bubblegun]

Your second half of your question about the Japanese tax office. Yes, I think if you set it up correctly you can have quite an impact on your Japanese income level.

Thanks for that.
Would you say in tax terms this "IMPACT" as positive or negative to you and your family?

How much would an accountant be?

[Wales4rugbyWC23]

Your second half of your question about the Japanese tax office. Yes, I think if you set it up correctly you can have quite an impact on your Japanese income level.

Thanks for that.
Would you say in tax terms this "IMPACT" as positive or negative to you and your family?

How much would an accountant be?

Very much positive the last couple of years it has been losses we've carried over to our tax return, so it has reduced our Japanese taxable income. We run a business, and I have used an accountant from day one, with our bookkeeping and tax returns. When I bought the flats, I asked her to put them through the Japanese tax return. She did not charge us anything more. I don't actually know how much a Japanese accountant would charge for helping with your tax return with foreign rental income.

[Bubblegun]

Your second half of your question about the Japanese tax office. Yes, I think if you set it up correctly you can have quite an impact on your Japanese income level.

Thanks for that.
Would you say in tax terms this "IMPACT" as positive or negative to you and your family?

How much would an accountant be?

Very much positive the last couple of years it has been losses we've carried over to our tax return, so it has reduced our Japanese taxable income. We run a business, and I have used an accountant from day one, with our bookkeeping and tax returns. When I bought the flats, I asked her to put them through the Japanese tax return. She did not charge us anything more. I don't actually know how much a Japanese accountant would charge for helping with your tax return with foreign rental income.

OK. Thanks for that. Any clue on how how the japanese tax office assumes property devaluation, when the property increases, or is it just a querk of apply japanese devaluation system to the purchase price of the home in the other country.