Income Tax Question

Hello, My mother is 62 years old now. She is a retired Hong Kong Government Civil Servant. She is receiving pension from the Hong Kong Government around £18,000 annually. This amount is being taxed in Hong Kong already. She doesn't do any work in UK. She receives bank interest around £5900 per year, dividend £25 in 2023/24 ,no other capital gain. In this case, does she need to file her tax return to HMRC?

Hi .
 

If the bank interest is from outside the UK, then yes. If it is UK interest then no . Thank you .

Hello Thank you for your reply. I have several follow-up questions (1) Since the £18,000 annual pension is paid by the Hong Kong Government is being taxed in Hong Kong, is this amount not treated as "income in UK" so that it won't be take into account when doing the income tax calculation? (2) If yes, is the £5900 annual interest not exceeding the allowance (Personal Allowance £12,570 + Starting rate allowance £5000 + Interest allowance £1000)? So does it mean no tax is needed to be paid but only reporting to HMRC? (3) The £25 dividend (outside UK) is surely within the dividend allowance, should this be reported to HMRC as well? Thank you for your kind help.

Hi
Under the terms of the DTA, the pension from Hong Kong is only taxable there. The interest received will be covered by personal allowances and no tax will be due. It only needs to be reported on a tax return if it is foreign interest.

Hi Hope you can help. Recently changed jobs, I got pay for one week from my old job and 2 weeks for the new one. Both were tax code 1257L. I then got a notification from HMRC saying I'd not paid enough tax in the current tax year(this year) and my tax code was changing until next year to 1112LX to pay it back. Im confused how i owe tax now as id been paying correct amount. Thanks for any assistance!

Hi TroTro,
When someone leaves one job and starts another job within a short space of time there is often an overlap of pay days which results in duplicated personal allowances,
especially if both employers use the standard tax code of 1257L.
We will often reduce a tax code to collect this underpayment by adding an in year adjustment which will aim to collect the underpayment in equal installments each
week or month up to the 5 April. 
Thank you.

Hi I am in full time employment as a seafarer I get a tax refund as I meet the requirements. My question is if I do self employed work on my time off in the UK do I still get the personnel tax relief and do I need to pay tax on this. Would this affect my tax return for being out of the country for more than 183 days thanks.

Hi Padraig,
Yes, you can claim personal allowances against your net Self Employment profit, which is taxed as normal.
Thank you.