As an Amazon seller, you must already be swamped with all the different taxation laws for different countries in Europe. As Amazon UK Accountants specialists, we understand the pain of the uncertainty and doubts you may face when it comes to knowing when you are liable to pay tax, especially if you are overseas.
Ensuring that your tax residence status is up to date can be complicated. Despite whether you still currently live in the UK, you will still be required to complete a tax return.
If you currently live in the UK, but you are planning to move abroad, it is essential that you prepare all the relevant documentation required to ensure that you avoid any pitfalls. Below are some of the reasons why you may be required to file your tax returns:
- If you are a director of a UK company
- If you receive profits from a UK partnership (investments or dividends)
- If you earn an income in the UK through self-employment
- If you do not live in the UK, but you do some or all of your work in the UK
- If you are in receipt of UK rental income
- If you make capital gains from the sale or disposal of assets in the UK
Many of these reasons will require professional advice from an accounting specialist.
Creating Your UK Tax Residence Status
HMRC use their Statutory Residence Test to determine whether an individual is a tax resident. A common mistake with many non-residents is creating your own tax status from what you research online.
You must take into consideration that this process can become very complex. To avoid any extra added fees and penalties you must always consult an accounting specialist for some guidance first.
What is Self- Assessment?
A Self-Assessment tax return is a declaration statement of the amount of income earned by an individual during a tax year (the tax year will always begin on the 6th April and will end on the 5th April the following year).
This assessment will also calculate the amount of tax that is owed by an individual, and any reimbursements which are owed from income received throughout that tax year under assessment.
Under the usual circumstances, if HMRC deems in necessary that an individual is obliged to file a Self-Assessment tax return, they will automatically send the person a notice once the tax year has come to an end.
You must file your Self-Assessment on time. Be sure to check out the Government website link below to see the submission dates.
Non-Resident return penalties
If you file or pay your Self Assessment after the 31st of January you will incur a penalty charge. The penalty regime currently in place is as follows:
- 1 day late: Initial penalty of £100
- 3 Months late: Automatic penalty of £10 per day up to a maximum of £900
- 6 months late: A further penalty of the greater of £300 or 5% of the tax that would have been due and payable if the Return had been submitted on time.
- 12 months late: Another penalty of £300 or 5% of the tax that would have been due and payable if the Return had been submitted on time.
These penalty charges are correct at the time of print.
Besides the above, you will be required to pay tax-geared penalties and interest on any outstanding tax payments.
As Amazon specialist accountants, we are reliable in keeping you informed about any of the latest government changes, as we understand it is vital to your business that everything is kept up to date.
Not only could you incur extra added charges, but at the risk of your Amazon seller account is closed, it is important to have all hands on deck with your taxes….which is exactly how we operate at Sterlinx!
UK Accountants: Book a consultation now – Sterlinx can help!
If you are currently living in the UK, but are going to be moving abroad or you are already a Non-resident living overseas, contact us now for our expert advice on making the process as smooth and simple as possible.
We have our very own in-house Amazon accountants specialists and Chartered accountants ready to advise you.