This is a question that the Shalchi & Partners team regularly comes across and is often asked: “Do I need to be doing a tax return as a British expat?”

If you’re a British expat who is looking for repatriation tax advice and help, read our blog. Our Founder and CEO, Hamzah Shalchi, gives his advice on why it’s actually beneficial for you to file a tax return as an expat. Shalchi & Partners makes filing your tax return simple as an expat and even offers free tax consultations from chartered UK accountants for those repatriating to the UK. Don’t make your tax situation a problem. Contact us today to book a meeting with one of our trained and qualified financial advisors. We can help you file a successful tax return whether you are an expat or repat. 

Hamzah Shalchi’s Expert Expat Tax Return Advice

It is never a bad idea to do a tax return and keep all of your records up to date with HM Revenue & Customs (HMRC). This doesn’t necessarily mean that you will have to write a cheque to HMRC every year. In fact, in the first year or two as an expat, HMRC may actually owe you money! What’s a better reason than that to do your tax return?

Many expats rent out property while working overseas; some even doing so for investment purposes. Keep in mind that income from a rental property is taxable. If you are a non-resident, you would need to exceed your personal allowance of income to be liable for income tax payments. This is another excellent reason why you should record your finances with a trusted accountant who can file your tax return correctly. The cost of a good accountant far exceeds the cost of making a mistake and being fined for not paying the correct amount tax. For as little as £150 a year, you can hire an accountant to ensure that your tax return is filed promptly. smoothly and correctly. 

It is important to note that your property taxes are not the only thing you need to report on correctly. You will want to be transparent about the amount of time you spend in the UK and the work you carry out there. Be sure to record both while visiting or working in the UK.

The date you become an expat and the date you repatriate is also important when filing a tax return. If you become an expat halfway through the tax year, then you may actually be owed money. If you return to the UK at a similar time, then your overseas earnings may also be taxable from that year. 

Remember when I said expats rent out property for investment purposes? That’s because many expats tend to make investments while living and working overseas. The majority of my clients have moved overseas to save money, reduce their retirement age or even put a dent in the mortgage that hangs over them. Before you repatriate, keep in mind that some of your plans may need to be endorsed, altered or in some cases liquidated to avoid tax penalties. Always seek professional advice and turn to us for a free, second opinion to ensure that the financial advice you received is sound and trustworthy. 

Shalchi & Partners is a financial advisory firm with traditional values, so contact us when you need professional expatriation and repatriation services you can trust. We’re your ideal expat partner.