Best Software for Non-Resident Self-Assessment Tax Return in the UK with Rental Income

Managing your tax return as a non-resident with UK rental income can feel daunting, especially since you cannot use HMRC's online system. Fortunately, there are several software options and manual processes that can make the task easier. This guide will help you navigate the best choices available.

Using HMRC's Online System

While HMRC's process can be slow and cumbersome, it is still possible if you have a UK postal address. Here’s a step-by-step guide:

Apply for a UTR: Start by applying for your Unique Tax Reference Number (UTR). Visit the HMRC website to apply. Register for an Online Account: Once you have your UTR, you need to create an online account. Use the same HMRC website to create a new online account. File Your Tax Return: Make your way through the process to file your tax return. Note that each step can be slow, and you may face delays due to the current postal backlog.

To speed up the process and avoid delays, you might consider using a friend or relative’s UK address for both registration and the online account. Once completed, you can use your real address for filing the return.

Note: The HMRC website is designed for UK residents. If you are non-resident, you may have to use a UK postal code to avoid rejecting your address. After completing the initial steps, you can edit the postcode in the system.

Manual Processes

In some cases, you may not need any software at all. You can contact HMRC directly and follow their advice for your specific situation. Alternatively, you can find the process on the HMRC website.

Software Options

If you prefer to use software, there are several options available. Here’s a list of recommended software that can help:

TaxScouts: Highly recommended for non-residents. Their service can simplify the process significantly. Andica: A cost-effective option at ￡12.95 including VAT. It is straightforward and does the job well. SageMindYourOwnBusiness: Depending on your skills, you might prefer to use standard Excel or other software options. SageMindYourOwnBusiness is one such software that is often praised for its user-friendly interface.

Andica, for instance, is a user-friendly option that requires minimal inputs. It’s a must-have for those who want to keep things simple and cheap.

Other software options, such as the one called yourownbusiness, are available but might require more technical knowledge or manual inputs. Reviews have praised others like Sage, which is made in Australia, for its robust features but might be more suitable for those who are tech-savvy.

Andica's Features: Andica is especially praised for its straightforwardness. It’s an ideal choice if you want to keep things simple and stick to a budget of ￡12.95 including VAT. The software is designed specifically for UK landlords, making it user-friendly and efficient for your needs.

Registering and Filing Your Tax Return

To fully register and file your tax return, follow these steps:

Visit the HMRC self-assessment portal. Register as a new user and get a UTR number. Fill in the online self-assessment return, which will calculate the tax you owe and provide payment options. Annual registration must be completed online by 5th October for the tax year April 2021 to April 2022. Tax returns must be filed and payments made by 31st January of the year following your return, which is 2023 in this case.

By following these steps, you can efficiently manage your non-resident tax return with rental income in the UK, even with some of the challenges presented by HMRC's process.