Tax Forum :: Free Tax Advice

Hi

I'm non British born and filled in my self assessment for the last financial year (2015/16) claiming the remittance basis as a non domiciled individual for less than 2000 pounds of foreign income.

This year, due to a change in intention/more certainty over my stay in the UK, I wish to have myself treated as domiciled. I've never filled out a form or anything justifying my non-domicile in the UK, so it has purely been on the basis of my intention.

A few questions:

1) is HMRC likely to question the change in domicile from one year to another?

2) could they retrospectively argue that I need to change my status for last year as well? If so, how would that work?

I note that my non UK income is very small - less than £50 per year so I am less concerned about the tax liability and more concerned about doing the self assessment correctly and avoiding any troubles with HMRC

Just stop claiming to be non-domicled. HMRC are not going to argue over such a small amount of income. Domicile enquiries are expensive.

You don't need to change your domicile status (it might be useful in future), just disapply the remittance basis.

If you are filing a return then you can elect for the automatic remittance basis not to apply (s.809(1B) ITA 2007) and include the income.

"(1B) Condition B is that the individual gives notice in a return under section 8 of TMA 1970 that this section is not to apply in relation to the individual for that year.]"

Or remit the income during the year so that the remittance basis doesn't apply.