Alaska Posted July 17, 2013 Share Posted July 17, 2013 Hello I am currently getting all the paperwork together to lodge our UK tax returns as we have a small rental income. It is well within the tax free allowance. So my question is that I think my husband will need to declare his Australian income on the UK tax return - is that correct? If so will we possibly end up paying tax as I hear that the Oz tax rates are a bit lower than the UK ones? We are on a 457 visa if that makes any difference (I assume it doesn't although it does the other way around I believe!). Thanks for any help. Link to comment Share on other sites More sharing options...
Parley Posted July 17, 2013 Share Posted July 17, 2013 I think it depends if you are considered a resident of Australia for tax purposes or not. If you are Australian resident for tax you will complete and Aus tax return, if UK resident for Tax declare it on your UK return. Link to comment Share on other sites More sharing options...
Alan Collett Posted July 17, 2013 Share Posted July 17, 2013 http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=UKkNvDQp7sI&formid=3717 You should have reference to booklet HMRC6 (subject to the UK's new Statutory Residency Test), and the provisions of the Tax Treaty between the UK and Australia. Best regards. Link to comment Share on other sites More sharing options...
Alaska Posted July 17, 2013 Author Share Posted July 17, 2013 Thanks. Parleycross - yes we are a resident of Australia for tax purposes so will declare it. Alan - thanks for the link but I don't really understand much of it so will do the declaring thing and go from there :biggrin:. Link to comment Share on other sites More sharing options...
Alan Collett Posted July 17, 2013 Share Posted July 17, 2013 Thanks.Parleycross - yes we are a resident of Australia for tax purposes so will declare it. Alan - thanks for the link but I don't really understand much of it so will do the declaring thing and go from there :biggrin:. Alaska: I recommend you take professional advice and consider paying for these tax returns to be completed, as from what you have said it appears you are going to lodge an incorrect tax return. Residency in each country is a factor in whether income is taxable, but the nature of the income and (if you are tax resident in both countries) the Tax Treaty provisions are also relevant. Best regards. Link to comment Share on other sites More sharing options...
Alaska Posted July 17, 2013 Author Share Posted July 17, 2013 Thanks Alan. We are planning on doing this when we sell our UK property if we obtain our PR next year due to all the capital gains stuff. I have always done our taxes myself and was hoping to do it this year as there is just this one thing I don't know. If necessary I can phone the HMRC but the rate for it was pretty high as I remember so was just hoping that someone could advise me here. Link to comment Share on other sites More sharing options...
knsc Posted July 17, 2013 Share Posted July 17, 2013 the uk tax law is a real minefield we used these guys and can recomend them http://www.thefrygroup.co.uk/. Was money well spent. Nigel Link to comment Share on other sites More sharing options...
Alan Collett Posted July 17, 2013 Share Posted July 17, 2013 the uk tax law is a real minefield we used these guys and can recomend them http://www.thefrygroup.co.uk/. Was money well spent. Nigel Frys (who I know, and have a regard for) don't do Australian tax. If you only want or need one side of the equation that's fine, but I suggest the OP should be taking advice that relates to the UK and Australian tax regimes. Best regards. Link to comment Share on other sites More sharing options...
Peach Posted July 18, 2013 Share Posted July 18, 2013 but I suggest the OP should be taking advice that relates to the UK and Australian tax regimes. Alan do you know of such a company? :biggrin: Link to comment Share on other sites More sharing options...
Alan Collett Posted July 18, 2013 Share Posted July 18, 2013 Alan do you know of such a company? :biggrin: There's more than one (so I'm told!) ... :ssign7: Best regards. Link to comment Share on other sites More sharing options...
Alaska Posted July 18, 2013 Author Share Posted July 18, 2013 In some ways I am surprised no one can answer this, but in others I'm not. The people I know in real life who are in the same situation just don't even do a tax return for the UK. I wouldn't do that but it's obviously a cheaper and easier option so I can understand it. Doing the "right thing" is a pain. Link to comment Share on other sites More sharing options...
Alicia3 Posted July 18, 2013 Share Posted July 18, 2013 I wouldnt do it either...Why are you worried about this..Dont bother to declare it..You live in Australia dont you..I left the UK 10 years ago owing loads of tax I think..didnt even fill out a form when I left and no forwarding address either..Sorry dont care and never will..the more they know about you..the more they chase you.. Link to comment Share on other sites More sharing options...
Guest guest30085 Posted July 18, 2013 Share Posted July 18, 2013 Alaska- Alan from Go Matilda is qualified to give advice on tax matters for both UK and OZ, it may be worth speaking to him Link to comment Share on other sites More sharing options...
Alaska Posted July 18, 2013 Author Share Posted July 18, 2013 Alaska- Alan from Go Matilda is qualified to give advice on tax matters for both UK and OZ, it may be worth speaking to him I might have gathered that :laugh: I am highly reluctant to spend money on a tax return when I know how to fill in every section (having done it for many years) except this one new one. I will have to call HMRC and suck up that cost as I am pretty sure it will still be cheaper :biggrin: Link to comment Share on other sites More sharing options...
Alan Collett Posted July 19, 2013 Share Posted July 19, 2013 In some ways I am surprised no one can answer this, but in others I'm not. The people I know in real life who are in the same situation just don't even do a tax return for the UK. I wouldn't do that but it's obviously a cheaper and easier option so I can understand it. Doing the "right thing" is a pain. No, doing the right thing sometimes means you have to pay others to help ... particularly as: * You have a temporary residency visa and may have to return to the UK one day * HM Revenue late filing penalties are now levied on a per day basis if you don't submit your personal tax return on time. Best regards. Link to comment Share on other sites More sharing options...
Alan Collett Posted July 19, 2013 Share Posted July 19, 2013 I might have gathered that :laugh: I am highly reluctant to spend money on a tax return when I know how to fill in every section (having done it for many years) except this one new one. I will have to call HMRC and suck up that cost as I am pretty sure it will still be cheaper :biggrin: Calling HM Revenue for tax advice on which you can rely is not recommended. They won't understand the concept of an Australian temporary residency visa, and the contents of the Tax Treaty certainly won't be on the radar of HM Revenue staff who answer the enquiry line. Best regards. Link to comment Share on other sites More sharing options...
Alan Collett Posted July 19, 2013 Share Posted July 19, 2013 I wouldnt do it either...Why are you worried about this..Dont bother to declare it..You live in Australia dont you..I left the UK 10 years ago owing loads of tax I think..didnt even fill out a form when I left and no forwarding address either..Sorry dont care and never will..the more they know about you..the more they chase you.. You are encouraging unlawful actions. Not recommended. Best regards. Link to comment Share on other sites More sharing options...
Peach Posted July 19, 2013 Share Posted July 19, 2013 I wouldnt do it either...Why are you worried about this..Dont bother to declare it..You live in Australia dont you..I left the UK 10 years ago owing loads of tax I think..didnt even fill out a form when I left and no forwarding address either..Sorry dont care and never will..the more they know about you..the more they chase you.. Seeing as how unhappy you are in Aus, what do you think is waiting for you if you return to the UK? Or do you think HMRC will forget? Link to comment Share on other sites More sharing options...
Parley Posted July 19, 2013 Share Posted July 19, 2013 How hard can it be to fill in a tax return form ? I always do my own. If you get stuck on a question you can always google or in worse case ring the tax office. Link to comment Share on other sites More sharing options...
Alan Collett Posted July 19, 2013 Share Posted July 19, 2013 How hard can it be to fill in a tax return form ?I always do my own. If you get stuck on a question you can always google or in worse case ring the tax office. It's not hard to fill in a tax return. Filling it in correctly though ...? I've seen plenty of tax returns completed incorrectly - not only by unrepresented taxpayers. Best regards. Link to comment Share on other sites More sharing options...
Alaska Posted July 19, 2013 Author Share Posted July 19, 2013 No, doing the right thing sometimes means you have to pay others to help ... particularly as: * You have a temporary residency visa and may have to return to the UK one day * HM Revenue late filing penalties are now levied on a per day basis if you don't submit your personal tax return on time. Best regards. I am not sure what you are getting at here - I have no intention of not doing the tax return to the best of my abilities. Why is doing the right thing "having to pay others to help"? I have no intention of doing the wrong thing but would like to do it myself. I am fully intending on using Go Matilda for tax returns when we (hopefully) get PR and sell our property next year. Until that point I need to save up $6000 so I can pay for our PR application since DIAC kindly doubled it Link to comment Share on other sites More sharing options...
Alan Collett Posted July 19, 2013 Share Posted July 19, 2013 I am not sure what you are getting at here - I have no intention of not doing the tax return to the best of my abilities. Why is doing the right thing "having to pay others to help"? I have no intention of doing the wrong thing but would like to do it myself. I am fully intending on using Go Matilda for tax returns when we (hopefully) get PR and sell our property next year. Until that point I need to save up $6000 so I can pay for our PR application since DIAC kindly doubled it I will send a PM to you. Best regards. Link to comment Share on other sites More sharing options...
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