Work in UK - tax position

[Chortlepuss]

I came back to UK on extended holiday for 2 months and there is the possibility of some contract work here. I want to do it and delay my flight back to Aus till December. I have worked part of Aus financial year in Aus, but largely struggle to get decent work in Brisbane. Not sure if I'll work in Oz again , as hope to move back to UK. Family still in Brisbane. We have a UK property we're renting out , and Pay tax on this to Oz not UK system . One thing that is putting me off is that tax implications are doing my head in. Will I need to pay Oz tax on earnings in UK if I am temporary resident in UK as part of this years Oz tax return? What happens to my UK property rental as I would be over UK personal allowance?has anyone done something similar? Grateful for any replies!

[northshorepom]

You need professional advice, as from your post I am assuming you are PR/Oz citizen (and hence have tax liability in Oz for overseas earnings)

 

You shouldn't lose out, but your affairs will be complicated both by split year treatment and the dual taxation situation. Suggest you try a PM to one of the accountants who hangs about on the board. Pretty sure Alan Collett for one earns both in the UK and in Oz and will be in a good position to advise

[Guest]

I have posted a similar query in reverse - I am looking at living in the UK but still being paid in Aus

 

How would you provide the contract services? Do you have a company in either UK or Australia that you would work through? From what people have been saying to me if you have an Australian company they can provide services to the UK but if you are working through a UK company or direct through an agency then you will pay tax in the UK if you are working and living there.

 

Although it would be messy I don't think there is a real problem, you would be considered a resident for tax purposes once you were working in the UK (if you were paid in pounds into a UK bank account) and it means you would be resident for part of the year in each. So for the period you are in the UK you would no longer be a non-resident landlord and would be taxed on the rental income (although I'd get a good accountant who is able to do both your tax returns and this can be minimised, as it is the income for the year, not the particular month that counts).

 

If it's a good contract, or good for your mental health then the messiness (& accountants fee) will be worth it. The company that I am with want me to continue on the project from the UK and although it means my divorce from Australia won't be as clean as I would have liked I'm not going to turn down 6 months of income without having to really think about it when we get back. There are plenty of roles coming up in my field in Edinburgh/Glasgow but working from home for 6 months would be great too whilst we get settled.

[Guest]

Agree that you need professional advice - mine was meant to be just a general 'it can be done'

[Chortlepuss]

Thx all for replies. I was over thinking it. After struggling for work in Brisbane it is lovely to have the chance of a decent gig.

[Rupert]

I came back to UK on extended holiday for 2 months and there is the possibility of some contract work here. I want to do it and delay my flight back to Aus till December. I have worked part of Aus financial year in Aus, but largely struggle to get decent work in Brisbane. Not sure if I'll work in Oz again , as hope to move back to UK. Family still in Brisbane. We have a UK property we're renting out , and Pay tax on this to Oz not UK system . One thing that is putting me off is that tax implications are doing my head in. Will I need to pay Oz tax on earnings in UK if I am temporary resident in UK as part of this years Oz tax return? What happens to my UK property rental as I would be over UK personal allowance?has anyone done something similar? Grateful for any replies!

 

Your UK property income always was taxable in UK, but obviously fell below the personal allowance. When you do your tax return this year, because of the UK employment earnings you might end up paying the tax on rental income in UK. Then when you do your Australian tax return you would again declare the UK rental income but this time you would also record the UK tax as a credit so that you are not taxed twice.