SA109 Explained

The SA109 form is an essential part of the UK Self Assessment tax return for specific individuals, including overseas landlords with UK rental income. Here’s who needs to fill it in:

• Overseas Landlords: If you’re living outside the UK but own and rent out property in the UK, you’re required to fill in the SA109. This form helps determine your tax residency status and how you should be taxed on your UK rental income.
• Non-Residents with UK Income: Individuals who are not residents in the UK for tax purposes but have income arising in the UK, such as rental income, need to complete the SA109. This ensures that their UK-sourced income is taxed correctly.
• Dual Residents: Those who are considered tax residents in more than one country, including the UK, especially if they are claiming tax treaty benefits, must fill out this form. This is often relevant for landlords who live abroad but have property they rent out in the UK.
• Individuals Claiming the Remittance Basis: UK residents, who are not domiciled in the UK and opt to be taxed on the remittance basis, need to complete an SA109. This includes landlords who may have income from outside the UK that they do not bring into the country.

Yes, you can complete the SA109 form online. To do that you will first need to obtain UTR (Unique Taxpayer Reference) from HMRC.

SA109 form can not be submitted through HMRC’s online Self Assessment system. To complete the form online you must use authorised tax software, like GoSimpleTax, which simplifies the process and guides you through completing the SA109 and other relevant forms. This online submission not only streamlines the process but also ensures faster processing by HMRC.

To notify HM Revenue & Customs (HMRC) of your non-residence status, you should complete the relevant sections of the Self Assessment tax return. This includes filling out the SA109 form as part of your return if you’re leaving the UK or have already left. The SA109 form is specifically designed for declaring non-residence and other related conditions. Keep in mind that you can not submit SA109 form directly to HMRC online. You need to use an authorised tax software like GoSimpleTax. Additionally, it’s advisable to inform HMRC through the P85 form if you’re leaving the UK to work abroad, ensuring your tax status is updated promptly.

The remittance basis is a tax treatment in the UK that affects how non-domiciled residents are taxed on their foreign income and gains. If you’re a UK resident but not domiciled in the UK, you can choose to be taxed on the remittance basis. This means you’ll only pay UK tax on:

• UK Income and Gains: Any income and capital gains that arise in the UK.
• Foreign Income and Gains Brought to the UK: Income and gains that you earn outside the UK are only taxed if they are brought into, or used in, the UK.

Choosing the remittance basis can be beneficial if you have significant income or gains outside the UK that you don’t need to bring into the country. However, it’s important to note that once you choose this basis, you may lose some tax-free allowances in the UK. Deciding whether to use the remittance basis can be complex, and it’s often advisable to seek professional tax advice to understand the implications fully.

As a non-resident, you may still need to complete a UK tax return if you have certain types of UK income. This includes:

• Rental Income: If you own property in the UK and earn rental income from it.
• UK Employment Income: Income from a job you do in the UK.
• Business Profits: If you run a business with a physical presence in the UK.
• Capital Gains: From selling UK assets, like property or shares.

However, if your only UK income is from interest or dividends, and tax is already deducted at source, you may not need to file a return. It’s always advisable to consult with a tax professional or check HMRC guidelines to understand your specific obligations.

For completing and submitting the SA109 form as part of your Self Assessment tax return, several commercial software options are available, including GoSimpleTax. GoSimpleTax is a user-friendly platform that supports the filing of SA109 forms, making the process more manageable, especially for those with complex tax situations like non-residency or foreign income.

For a comprehensive list of all the commercial software options that support the SA109 form, you can visit the UK government’s website. This list will provide a range of options to suit different needs and preferences, ensuring you can find a solution that best fits your specific requirements for completing and submitting your tax return.