Joobles Posted August 22, 2016 Share Posted August 22, 2016 Hi everyone, This year is my first year as PR and I'm trying to figure out how to do my tax returns. I have done my own in the UK for years as I have rental property and I did my Australian one last year as a 457 holder but this is the first time I've needed to declare my UK income in Oz so I'd like to check my thinking below is correct: 1. complete UK tax return as normal, do not declare anything for double taxation relief. I expect to have a tax bill to pay as I am making a profit and am registered as a non resident landlord 2. complete Oz tax return and use the rental income and mortgage interest (debt deductions) to calculate the foreign tax offset (this bit looks complicated!). For the rent etc I can use the average exchange rate, for the tax I'm thinking it should be the actual exchange rate (from the ATO site). This info I've gleaned from the HMRC and ATO websites - but have I interpreted it correctly?! Many thanks for any help or advice, JB Quote Link to comment Share on other sites More sharing options...
Joobles Posted August 24, 2016 Author Share Posted August 24, 2016 Can anyone help? tx Quote Link to comment Share on other sites More sharing options...
Rossmoyne Posted August 24, 2016 Share Posted August 24, 2016 Taxation issues between UK and Australia can be complicated, so I would suggest consulting a tax agent who is competent with both systems. Quote Link to comment Share on other sites More sharing options...
Joobles Posted August 24, 2016 Author Share Posted August 24, 2016 Taxation issues between UK and Australia can be complicated, so I would suggest consulting a tax agent who is competent with both systems. Thanks for your reply, I have had a quote but it was over $1300 so I was hoping to be able to do it myself. Quote Link to comment Share on other sites More sharing options...
Guest Posted August 24, 2016 Share Posted August 24, 2016 Thanks for your reply, I have had a quote but it was over $1300 so I was hoping to be able to do it myself. Have you tried @Alan Collett ? I have always done my own returns in the UK but definitely couldn't have got my first Australian one correct with his companies help. We did our own after the first one though. Moving back to the UK we decided to engage an accountant as the tax years are different, we'd been resident in both countries and I was now running a limited company - they assured me they could handle the UK tax return (I still did the Australian one) and they made a right pigs ear of it - I ended up teaching them a thing or two. You can claim a lot more than just the mortgage interest in Australia so it is well worth taking advice - $1300 seems steep, I think ours was half that (but it was a while ago). Quote Link to comment Share on other sites More sharing options...
buzzy--bee Posted August 24, 2016 Share Posted August 24, 2016 I have done Aus tax returns for a UK rental for the last few years. You can claim everything, but you have to note the exchange rate from the ATO website on the day that the expense (or income) was incurred. So I have a separate column in my spreadsheet for this. The most important thing to claim is depreciation. This saved me $4000 in tax last year alone. If you PM me your email address I will get details sent to you of how to do this. Quote Link to comment Share on other sites More sharing options...
Joobles Posted August 24, 2016 Author Share Posted August 24, 2016 Thanks BB and LR. The $1300 is actually to do the UK and AU so yes, effectively the AU one is half that amount. I was wondering if I could just get mine or my husbands done and then be able to figure the other one out myself. Which it sounds like I could LR from the fact that you have said you just needed the first one done. BB, I have had a quote to have a depreciation report done on one of our properties, the other is about 130 yrs old so I'm not sure it worth it, but that's quite a saving! I'll send you a pm. Thanks again for your help, J Quote Link to comment Share on other sites More sharing options...
Johndoe Posted August 24, 2016 Share Posted August 24, 2016 Have you tried @Alan Collett ? I have always done my own returns in the UK but definitely couldn't have got my first Australian one correct with his companies help. Errrrrrm? Shouldn't that be "without"? ;-) Quote Link to comment Share on other sites More sharing options...
Dazken Amac Posted August 29, 2016 Share Posted August 29, 2016 (edited) Hi buzy bee my email address is nekzadcama@gmail.com I would like to get in touch on the issue.. nekzad I have done Aus tax returns for a UK rental for the last few years. You can claim everything, but you have to note the exchange rate from the ATO website on the day that the expense (or income) was incurred. So I have a separate column in my spreadsheet for this. The most important thing to claim is depreciation. This saved me $4000 in tax last year alone. If you PM me your email address I will get details sent to you of how to do this. Edited August 29, 2016 by Dazken Amac Quote Link to comment Share on other sites More sharing options...
buzzy--bee Posted August 29, 2016 Share Posted August 29, 2016 Hi buzy bee my email address is nekzadcama@gmail.com I would like to get in touch on the issue.. nekzad Done. You will receive an email from the depreciation company. Quote Link to comment Share on other sites More sharing options...
Dazken Amac Posted August 29, 2016 Share Posted August 29, 2016 Thanks got it Sent from my GT-N7100 using Tapatalk Quote Link to comment Share on other sites More sharing options...
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