ChrissyH

It was an extreme example to show your address does not necessarily mean non-residence. The residency forms are completed to advise them of your continuing non-residency status. They do not know you have spent time in the UK unless you advise them on the residency pages where they ask you that very question. They allow you to register on-line as the nature of self assessment is the onus is on the tax payer to complete the forms correctly or instruct an accountant to complete them on their behalf.

Hi MaryRose, I am Alan's business partner. I will jump in if I may. Living abroad or having an address abroad does not make you automatically non-resident. The new UK residency tests are based on a number of factors including the ties you have to the UK. For example you could have been staying on a friends sofa in Australia, have a vacant house waiting for you in the UK and a family/children in the UK waiting for you also. There are many factors but this was just an example that an address abroad does not automatically make you a non-resident of the UK. It is completely frustrating that HMRC do not mention this in their phone calls or correspondence. From memory the online software does prompt you within the software itself that a non-resident should not complete the online form. The free online software is not to be used by non-residents as you cannot access the supplementary residency pages. You can still complete your return by yourself by completing the paper form HMRC send to you which usually does include the residency pages. The paper form is due for lodgment by 31 October wach year. If you did not get sent a form they can be downloaded from HMRC's website. Alternatively the commercial programmes are available or as you know you can instruct an agent.

Your intention to stay is very relevant - look at the link below and the 'Simon' example http://www.ato.gov.au/General/International-tax/In-detail/Residency/Examples-of-residents-and-foreign-residents/ Did you submit your own tax return or have the assistance of a tax agent? Your tax return should have marked resident for tax purposes (if indeed you did fulfil the criteria). Whilst your visa was a 457 if your circumstances were largely the same I would be amending the tax return or if this has arisen via the ATO appealing against the assessment. Feel free to pm me if I can help further.