WHV.......Worked in Oz paid all taxes etc UK now want a payment for year missed?

[LojaChica]

Can anyone advise or share their experiences please?

My Daughter worked in Australia for a year.................normal job/wage etc.........nothing above the norm

7 years later the UK Tax Office are demanding a re payment for money owed to them during the year she lived and worked in OZ

We have sent them wage slips.....TFN......super annuation payments etc which proves she paid tax but to no avail

 

She got the usual refund when she left OZ as a temporary resident less than 1000 AUD so I'm at a loss to understand why

 

Any help/advice appreciated

 

TIA

[Bungo]

Can anyone advise or share their experiences please?

My Daughter worked in Australia for a year.................normal job/wage etc.........nothing above the norm

7 years later the UK Tax Office are demanding a re payment for money owed to them during the year she lived and worked in OZ

We have sent them wage slips.....TFN......super annuation payments etc which proves she paid tax but to no avail

 

She got the usual refund when she left OZ as a temporary resident less than 1000 AUD so I'm at a loss to understand why

 

Any help/advice appreciated

 

TIA

 

Well it is probably because the Australian tax was refunded? By the way it is not that usual to get a refund, refunds happen if tax was overpaid and for no other reason.

 

To establish UK tax non resident status a complete tax year has to be spent out of the UK, that is from 6 April to 5 April, so unless she travelled on exactly those dates for her year out she did not establish this. So it means she liable to UK tax on her income, had she paid tax in Australia then the double taxation agreement would stop her paying twice (to an extent) but as it was refunded, she is caught by UK taxes. Funny that they even knew though? Was she doing tax returns before she travelled?

[LojaChica]

YES!

 

Absolutely

 

Thank you for your reply

[LojaChica]

On a WHV ALL Temporary Residents are entitled to a Tax Refund when they leave?

 

PS

 

She travelled August to May

[NickyNook]

On a WHV ALL Temporary Residents are entitled to a Tax Refund when they leave?

 

PS

 

She travelled August to May

 

No. There is nothing special about being on a WHV that means you automatically get a tax refund. The only reason anyone (regardless of visa status) gets a tax refund is because they paid too much tax.

 

Lots of WHV holders do pay too much tax - and that's because lots of WHV holders don't work for the full tax year. While they are working, they're taxed as if they would be earning that pay for every week of the tax year. Anyone (regardless of visa status) who only works part of the tax year will most likely get some sort of tax refund.

 

So the reason that lots of WHV holders get a tax refund is nothing to do with their visa status and everything to do with the fact they don't work for a full tax year.

[Alan Collett]

I would contend that the Tax Treaty provides for income from employment undertaken in Australia to be taxed solely in Australia, and is therefore not subject to tax in the UK.

 

Have a look at Article 14 of the Treaty between the UK and Australia.

 

Best regards.