If returning to the UK - Tax advice

[ginger]

Hi all, if we were to return to the UK in October could I claim 2 lots of e-tax (2012-2013 & 2013/2014) in one go? or would I do a 2012-2013 tax return and then a seperate as and when I leave?

 

When would be the best time to make a final claim?

 

ginger

[Rupert]

What do you mean? What is e-tax? Are you asking about Uk tax or Australian tax?

[ginger]

e-tax is the Aus self assessment. I didn't use an agent last year I just used the e-tax tool.

 

I would like to know when to claim back tax for working part of the 2013-2014 tax year as I will have quite a bit of tax to claim back as won't hit the tax threshold from July, Aig, Sept and Oct wages.

 

ginger

[Rupert]

e-tax is the Aus self assessment. I didn't use an agent last year I just used the e-tax tool.

 

I would like to know when to claim back tax for working part of the 2013-2014 tax year as I will have quite a bit of tax to claim back as won't hit the tax threshold from July, Aig, Sept and Oct wages.

 

ginger

 

Remember that Australia pro rates the tax allowance for the year, so if you have worked from July until the time you leave, then you would have had all the personal allowance that you are entitled to factored into your PAYG.

 

However the question is whether you have paid tax at a higher rate that you needed to, if so, then you would be due a refund.

 

Personal allowances do not get carried forward, if that is what you were asking about the 2012/13 year.

[blossom]

You can certainly do the finished year.

 

I would probably call into your local tax office to ask what you need to do if you only do a part year. They are pretty helpful.

[ginger]

Thanks Blossom79 I may have to do that.

 

Thanks Rupert, In those 3 or 4 months of work I won't be far above the 18000k threshold but will have paid tax as if I was earning a yearly wage so believe I would be due a refund.

 

ginger

[Notts]

What Rupert was trying to explain, I think, is that in Aus you have to pro-rata the allowance for the time you were earning (in the UK you get the full allowance even if you only earn income for a part year). PAYG tax will try to even out your tax through the year by spreading you allowance through the year, effectively the same as a pro-rata calculation.

 

This means that at any time (if your income is fairly smooth) you won't be far off your actual bill. In the UK people paying PAYE will generally be due a refund if you leave part way through the year.

[ginger]

.....sh*t that puts my moving back calculations down by a few grand.

 

So if for example If i earn say 60k over a year and pay $200 a week in tax if I actually leave after earning only 20k my $200 tax a week is still required to be paid? I would have thought that as you've only earnt 2k above the threshold you'd get most of it back.

 

ginger

[Alan Collett]

http://www.ato.gov.au/individuals/content.aspx?doc=/content/40931.htm

 

See here for details regarding the tax free threshold when leaving Australia.

 

An "in year" tax return can be lodged by sending a paper copy of the previous year's tax return to the ATO with the year at the top amended. A covering letter is also recommended.

 

Best regards.

[fourcorners]

When we left Australia the first time in April 2008 we submitted a tax return through HR Block just before we left (i.e. before the end of the tax year). We got healthy refunds as we had been paying a tax rate assuming we would be earning for the full tax year. I think we both got $2 or $3k back each.

[ginger]

Thanks all that's great info, I gave the ATO a call and it all seems fairly simple.

 

ginger

[Notts]

What Rupert was trying to explain, I think, is that in Aus you have to pro-rata the allowance for the time you were earning (in the UK you get the full allowance even if you only earn income for a part year). PAYG tax will try to even out your tax through the year by spreading you allowance through the year, effectively the same as a pro-rata calculation.

 

This means that at any time (if your income is fairly smooth) you won't be far off your actual bill. In the UK people paying PAYE will generally be due a refund if you leave part way through the year.

 

From reading the Lin provided by Alan, only part of the Australian allowance is pro-rata, so people will generally be entitled to a refund on leaving.