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Sue Ashforth

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  1. Sue Ashforth

    UK State Pension - Deferred Lump Sum Tax Implications

    I don't know where you get that idea about UK tax from but I can assure you it is not true. In the UK your pension is treated as income from earnings and if pushes you into the next tax bracket when added with other incine then the tax brackets work in the usual way and you will pay more tax incrementally. So it works exactly the same way in Australia, although I would still defend Australia's right to do things different if it so wishes. Hi Bungo, If you look at the UK tax website, it tells you "The rate of Income Tax to be used to charge any state pension lump sum is the highest (or marginal) rate that applies when charging the individual's other income to Income Tax. Section 7(5) confirms, firstly, that if the individual isn't liable to tax for the year of assessment on their other income, no tax should be deducted from any state pension lump sum. Otherwise, one of three rates of Income Tax apply, as follows...." I would also defend Australia's right to have their own tax system; all I'm saying is I wish we'd known beforehand (our own fault, I know).
  2. BE AWARE!!! We've been Australian residents for almost 4 years now; last year one of us decided to claim our deferred UK State Pension (it was deferred for 20 months). As you may know, if you claim this in the UK, it is NOT able to push you into the next tax bracket and so you pay tax at the same rate as your other income (ie low earners pay 20% tax). However, the tax implications in Australia are different - the one-off payment has pushed us into the next tax bracket so instead of paying only 19% as low income earners, we have to pay 32.5% (on income over $37000). Not only has this greatly increased our tax payment but the Medicare Levy is high too. We do understand that we have to pay tax and the Medicare Levy but I do wish we could have found a way to only pay the UK 20%! Perhaps we should have deferred our Dual Tax Agreement..................
  3. Sue Ashforth

    British Pensions - UPP's?

    I understand that I can claim UPP (Undeducted Purchase Price) deductions to all pensions received from the UK, whether private or government. I know the UK State Pension is a UPP but how can I find out if my former works pensions are also UPP's? Can anyone advise please?
  4. Sue Ashforth

    is profit on UK rental property taxable?

    We have also come here as permanent residents and, unable to sell our UK house, have rented it through an estate agency. As I understand it, so long as we are renting in Oz, the UK house is counted as our 'permanent residence' and we have to pay Australian tax on the profits, but not UK tax. We are currently completing the Double Taxation form so tht we don't have to pay tax on our income in both countries. We are living on our UK pensions and do not work. You can check whether this would be correct for you with the Australian Tax authority on Google. Good luck!
  5. Ours was collected from the UK on 3rd August 2011, it was 400 cu ft packed in a shared container. It landed in Port Botany, Sydney last Friday (14th October) and we're hoping to have it in Port Macquarie within 10-14 days from that date. Just hope all goes well, can't wait to see our stuff again!
  6. Our first things to do were the usual - register with Medicare, find somewhere to rent, rent a car, etc. We;ve moved to beautiful Port Macquarie in NSW. Things to note on arrival are as follows - and we wished we'd known before we set off: RENT You will definitely need rental references, proof of bills payments, proof of income (these papers are all with the shippers, except we'd never rented before. Good job my son-in-law's brother had been a real estate agent and could put a good word in for us!) You only get one chance to look round the property; this will probably be with several other families also hoping to rent the property. If you’re only there 15 minutes, this is ALL you get to look around – no second visits! We were asked to pay one week’s rent as deposit ( it was then taken off the market). On signing the contract, we paid one month’s rent as bond (bank cheque into a Rental Board Bond) and one week’s rent. Two week’s rent was asked for in advance (we’d already paid one week as the deposit so only needed to pay one further week). At the contract signing, you are given an ‘’outward report’’ of the condition of the property, listing ALL defects. Once you move in, you are given 7 days in which to complete your ‘’incoming report’’ where you list any defects you may find that they have missed. You need to check everything carefully as you cannot add to the report once you have handed it back to the agent. (Even dirty marks on the wall, dirty/damaged fly screens etc., etc.) Best way to do this is to start cleaning - you won't feel like it but you'll see any faults!) SETTING UP We only brought our clothing and hygiene stuff as we were only allowed 23 kgs each plus hand baggage. Here’s what we needed to buy to get started: laundry basket, clothes airer, scrubbing brush, insecticide, cobweb brush, tin opener, pans, non-stick frying pans, mats for doorways & bathroom/toilet, towels, tea-towels, crockery, cutlery, baking tins, dishes (oh, why did we have to send it all with the shippers?) We also purchased a bed & bed linen (mattresses much more expensive than UK but bed linen OK for price), dining table & chairs, TV & cabinet and several small rugs for doorways. We had to borrow a 3-piece suite until we could purchase one and also borrowed a set of drawers. Oh, and we bought a fridge-freezer and a car. We’re not buying anything else till our stuff comes …… SHIPPERS Talking of which, we estimated our goods at 300 cu ft and paid up front. However, whilst in Hong Kong on our second day out of the UK, we got a message from my sister saying that the shippers maintained that our goods in fact measured 400 cu ft and we had to pay them an extra 580 quid before they would ship our goods! I’ll let you know what happens when they arrive and we find the boxes are only half-filled! We'll certainly be trying to claim some of the extra costs back! OTHER STUFF Insects: Ants crawl everywhere – they can smell a rice-sized bit of sweet stuff from metres away and tell all their mates – who then form a long line from their entry point to the sweetie! You’ll need ant-killer (or a wet cloth). Cockroaches – our place has been fumigated so none yet but the last place had a few – and they’re not all small, either! Stamp on ‘em, sweep ‘em up or spray them – it’s not very nice to tread on one during the night (or hear one trying to claw its way out of a paper carrier bag in the middle of the night - as happened to me – I laid awake for 3 whole hours till the alarm went off and my husband awoke as I daren’t get out of bed or even peep over the blankets! Could have been a snake, though? And one other thing - paper wasps! They start building small nests in the eaves but apparently they can sting several times and often do without provocation! If you see any nests (they look almost like small wall hooks) - remove them with a cobweb brush immediately! Storms: Many, beautiful, colourful sheet & fork lightning, long-lasting and buckets and buckets of heavy rain! People: Very friendly and speak to you on the street to say Hello (most of ‘em anyway)
  7. Good luck to you Cakey! We're due to fly out next Thursday (4th August) and it's an absolute NIGHTMARE trying to sort goods out ready for the shippers, giving stuff away, deciding what clothes we can take and what we need to ship separately - as well as letting the house (as we can't sell) and all that paperwork! I know all the stress will disappear as soon as we start our journey - but I'll tell you something, we're NEVER emigrating again! For better or worse, we're staying in Oz!!! Best wishes .............
  8. Sue Ashforth

    Military discharge certificate

    My husband served with the Territorials when he was 18 for about 2 years. We were asked for a discharge certificate (he's now 63!!) and were told it was a mandatory requirement to gain our visa. They told him to ring the MoD, which he did and got the certificate within one week!
  9. Sue Ashforth

    There's A Mooth Loose Aboot The Hoouse.

    Looks like a Privet Hawk moth to me - they can have a wingspan of 4-5 inches, but it's the biggest I've ever seen! Have you looked on Google (images)? I'd have been pretty excited too but don't know about keeping it on my hand that long!
  10. Sue Ashforth

    Things to bring to Oz/things to leave in the UK

    I've spent hours making a full list of every single item we own, using Excel. I've got columns headed 'sell', 'take', 'leave' or '?'. I've now got to find out what replacement cost is of things we won't take but will need when we buy a home. (ie double bed & mattress - not taking but will buy new). I'm looking for prices on Aussie websites local to where we will live. This should also help reduce our shipping costs one I get the spreadhseet finished. We're intending to rent a furnished property when we arrive so it'll be a bit like going on a self-catering holiday - but I guess our suitcases will be full of clothes, toothbrushes and stuff. What a summer we're gonna have (yuk!!) - it's not easy!
  11. Our little label has cost about £60,000 - no way did we want an empty passport! We got our label without asking - posted the passports Wed evening and got them back Fri morning (unbelievable!) - I cried when we got them, I was so happy! 18 months of agony and a small fortune - it's well worth it!!
  12. We went to the one in Manchester earlier this year - fantastic guys! They even gave my husband a copy of his x-ray on a CD! The doctor also rang him at home to warn him about his blood sugar being a little high, recommended to see our own doctor to get medication upgraded.. They're brilliant and have our highest recommendation!
  13. Sue Ashforth

    when do you start doing things?

    We got this great list from someone ... somewhere... it should help! Organisation Plan for Emigration 12 months to go Min. 2 years left on your passports? Paperwork:birth, marriage/divorce papers, qualifications and driving licences Put house on the market Put finances in order, consolidate bank accounts and reduce debts. 6 months to go Get passports stamped with visa Sort what we're taking and what not (list items and size) Get quotes from shippers Book flights Sell unwanted furniture and clear out cupboards. Clean/paint garden tools/furniture Give notice to your employer & ensure you get your P45 Ask doctor/dentist/optician for hand-over files. Open an Oz bank account. Set up trading account with currency broker Request credit references from bank Identify temp accomm in case house sells sooner Car boot sale to sell any items you don't want to take. Make list of suppliers to write to- ref nos. and addresses etc 2 months to go Track down temporary accommodation in Oz. Start farewell parties now Organise birthday cards/presents for next 3 months. Request up to date statements on pensions 1 month to go Notify change of address to bank/passport office/DVLA/pension company/inland revenue etc Bring council tax/utilities up to date - cancel accounts for TV/internet/phone/insurance etc Arrange post to be redirected to a relative Transfer funds to Oz Start packing paperwork & essential items for arrival Collect hand-over files from doctor/dentist/optician Arrange private health cover for Oz if required Pay off any outstanding debts Close surplus bank accounts and destroy unwanted cards Shred any personal records you are not taking Confirm shippers are booked Ensure all relevant paperwork is in handy travel file Cancel any direct debits/standing orders Ask for copy of No Claims Bonus from insurance company Sell your car 1 week to go Cancel newspapers, milk or subscriptions Cancel car insurance Buy currency for each destination on route to Oz Throw more farewell parties! Ensure goods are about to leave the UK or are on way Down Under 1 day to go Ensure transport to airport is organised to arrive in plenty time for flight Establish who will be coming to the airport to say goodbye Get a good night's sleep When you get there On arrival Pick up "On Arrival" magazine at airport; contains lots of ideas, information etc Collect hire car and check into accommodation Contact people back home to let them know you have arrived safely Try not to sleep through the day Set up Pay-as-you-Go mobile phone - buy cheap SIM card and use in UK phone 1 week later Get tax file number (TFN) for Oz Explore areas to live in & ask locals as many questions as possible Meet rental agents & start reviewing property options Find solicitor to help with rental or purchase contracts Consider buying car asap Get car insurance Get landline installed and set up internet access Invite neighbours round for drinks & focus on making new friends 1 month later Review financial position and transfer more funds if required Set up standing orders for utilities Register for local doctor, dentist & Medicare Identify reliable plumber, electrician & mechanic in your area Consider re-writing your will Start to attend social functions or join a sports club Establish a routine and settle into your new life! BEFORE LEAVING Items Taken meter readings? De-frosted the fridge/freezer? Disconnected the washing machine, dryer and dishwasher? When removal company have completed packing, ensure all possessions are packed and loaded Remember to give house keys either to estate agent or family/friends Remember Passports Travel documentation A reasonable amount of foreign currency Valuables Passwords etc for UK bank accounts etc. Notification checklist Doctor Dentist House Insurance Company Car Insurance Company Life Insurance Company Health Insurance Plan Company Insurance Broker Electricity / Gas Water Board Council Tax Telephone Company, Internet Provider Bank Bank Bank Credit Card company Credit Card company Inland Revenue Department of Health and Social Security Post Office (for mail) Library Car Registration Authority Driver and Vehicle Licensing Agency Milkman Newsagents Subscriptions
  14. You jammy beggars! We're coming over on 4th August (to Port Macquarie in NSW) so WATCH OUT for us!! Glad all going well for you so far and hope it continues to do so! All the very best in your new life!
  15. Sue Ashforth

    Monies Earned In UK and Tax

    We'd be grateful if someone could point us to the right website for some information. My husband and I have a Contributory Parent permanent visa and will be coming out to Australia at the beginning of August 2011. We've calculated our income - all of it from State pension and private pensions. We've both retired from work and intend to try and live on our pensions. We also have some savings. As I'll be 62 and my husband 64 when we come over, what tax will we need to pay on our pensions? Does anyone know how much Medicare will cost (we intend to take this up as soon as we arrive). Are there any further reductions that we need to bear in mind? Finally, what's the best way to transfer our pensions to an Australian bank account? We'll have one open for when we arrive but wonder if it's better to transfer our pensions say, 3 monthly through a trader, to take advantage of better rates or is it just best to let our UK bank transfer it to the Aussie one? Thanks in advance to anyone who can help!