Summary: I am a UK citizen but not UK tax resident, I earn £2,000 a year in interest from UK bank accounts, (and foreign income), do I need to submit a self-assessment to HMRC? Did I need to before 2016, when banks deducted the tax at source and I had no other UK income? If I didn't submit anything from 2014 to 2018, what can I do to get back into compliance?
For around eight years I was living and working abroad. I am a UK citizen.
I made absolutely sure I was never UK resident for tax purposes (details at the bottom, <90 days in UK, failed the automatic tests, and insufficient ties).
I scoured the HMRC website regularly, and found no sign of having to report unless I have UK sources of taxable income. I wrote to a few accountant firms and never got a reply, so I (lazily) assumed there was nothing for them to be paid for. I tried self-assessment but there wasn't an option for declaring non-residence. So I assumed if I wasn't tax-resident, and have no UK income except for interest (then being deducted by banks), I didn't have to report anything.
I made around £2,000 interest from UK bank savings accounts. Tax on savings interest used to be deducted by the banks, who I told I wasn't tax resident. I then got a job in the UK, (still living abroad, but UK income), so I called my banks to notify them I am now tax-resident. This was when I learned that banks no longer take the tax, so I figure maybe I should have started filing self-assessments?
A friend now tells me that he has to report himself as non-resident to HMRC even with no UK income (although he owns an empty property). I assume I have fallen foul of this. I am not sure whether the rules changed, the website changed, or I just can't find the page on the HMRC website.
Did the rules change? Do I have an issue?
Did I become non-compliant when banks stopped deducting tax for me, as I should then have filed a self-assessment? Should this have included my foreign income or just my UK bank interest?
What can I do? I have never intended to avoid tax, and happy to pay any fines for my ignorance or failure to hire an accountant. Accountant firms don't reply when I ask to hire them to answer this, I'm not sure why and am more than a bit nervous.
I have passport stamps and copies of tenancy agreements covering the period. I can't now prove I did not work while in the UK, as I was self-employed, so have only gaps in contracts and invoices, that were irregular anyway. Bank statements might weakly substantiate it.
I was not tax resident because I was never in the UK for 90 days in any tax year, never had accommodation in the UK except a spare bed for the night when visiting friends and relatives, always had a home rented abroad, never worked while in the UK, (was always frantic friend and relative visits), had no spouse or child in the UK, and (not relevant to UK tax residence, but for information) I paid taxes in my home country.
