For foreign rental income from a condo in the US, I'd like to know if the following expenses related to that property are allowable deductions to reduce taxable rental income:
1) Property tax imposed by the local jurisdiction in Texas, which is used to fund local municipal services (similar to the council tax in the UK).
2) Homeowners Association (HOA) fee, which is used to cover costs such as maintaining the shared amenities in a residential community (similar to an estate management fee in the UK).
I tried to register SA1 (self-employed) to get my UTR number. However, when I entered all information and submitted, it said my personal details doesn’t match HMRC record (as I moved to a new home) and I went to a web page saying:
“ Business Registration
Change of personal details identified
The personal details entered do not match the personal details held for you by HMRC.
The personal details known to HMRC are:
Date of birth: xxx
Your home address xxx
If your personal details are incorrect or they have recently changed, you can update them in your Personal Tax Account
Selecting 'Next' will use the personal details held by HMRC for the registration.”
I tried to update my address several times by clicking the link provided in “Personal Tax Account”. But after I updated my new address, I went back to the same page above. After several looping back, I clicked “next” on the page above, then I went to an acknowledgement page saying my registration application was successfully submitted.
My question is whether my UTR number will be sent to my old address by post? If so, I will be unable to get the letter as I have moved home. In this case, how can I update my new home address in HMRC record so that I can complete the registration and get my UTR? Your help would be much appreciated.
Many thanks for your reply. I have two follow-up questions with regard to the self-assessment submission:
1) For my self-employment income of £350, I do not need to submit SA103S (self-employment) because the turnover is less than GBP1,000, correct?
2) For the capital gain of £1,000 from the sale of a mutual fund in a foreign country, do I need to submit SA108 (capital gain) or SA106 (foreign income)?
Hope all is well. I would like to enquire whether I need to apply for a personal UTR and submit a self-assessment for the tax year 2022/23 given my circumstances:
- I became a UK tax resident in October 2022.
- I earned a total commission income of about GBP 350 between 6 Apr 2022 and 5 Apr 2023 from a UK company where I'm self-employed.
- In October 2022, I sold a mutual fund (outside the UK) and received net proceeds of about GBP 14,000 (deposited in my foreign bank). The capital gain amounted to about GBP 1,000.
- Apart from the commission income and capital gain, I had no other income or gains in the UK or overseas from 6 Apr 2022 to 5 Apr 2023.
- Note that I became a director and shareholder of a private limited company in the UK after 5 Apr 2023 (so I believe this is not relevant to the 2022/23 tax year.
Based on the above circumstances where my income and capital gain fall below the tax allowance, do I need to apply for a personal UTR (using the SA1 form) and submit a self-assessment for the tax year 2022/23? If you could provide some clarity on this matter, it would be much appreciated.