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Captain Roberto

Financial advice tips re: letting a property in the UK when resident in Australia

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Hi

 

Does anyone on here have tips in this area?

 

We are moving to Sydney in 4 weeks time, and are letting our home ion the UK out. We will do our own tax returns, as we can claim back interest and costs etc. We are married and co-own the property. So, do we do a single tax return, or are we required to do one each (for UK tax)

 

and would we get any tax-free allowance in income? and if so, do we both get one?

 

I will probably ask my accountant, but was looking to gain a bit of knowledge first so I can follow his advice better. If anyone knows, please help us :)

 

I gather you can phone the tax man yourself, but I am in work and have no spare time at all right now..

 

Thanks!

 

Matthew


Moved to Sydney.

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You need to inform the tax office and fill a form in.

If you are letting through a agent, the agent is legally obliged to deduct tax from you by filling the form in no tax is required to be deducted at source.

You will both have to fill tax form in but you both get the personal tax allowance.

Don't forget to keep any invoices for repairs and maintainence etc so you can claim as much as possible to avoid paying tax on the income.

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Good stuff @Rallyman

 

we have done the forms and sent them off, so are on track to a point.

 

We have been keeping some receipts but my wife tends to forget and toss them out... and there were quite a few big jobs that were done in the slightly more causal way (cas.h in hand,... oops) so not got as many receipts as we should have. Good to know there'd be 2 x tax free allowances though.

 

Should we get my accountant to fill in the tax return online or is it simple?

 

I have been self employed for the last 23 years, but these days most of my income comes from a salary PAYE job. I do all my own books (as there's not too much to do), but i still get them to do the tax return for a cheap-ish price. Wondering what's the best, most efficient and straightforward way to do it.

 

Thanks

 

M


Moved to Sydney.

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PS - I'd ask my accountant this stuff, but he usually persuades me to use them at ££ cost! He's very helpful, but not particularly impartial...


Moved to Sydney.

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You also need to declare it on Aus tax forms too. Any tax paid in UK can be set off against tax due in Australia though. So although you may be under taxable income level for UK it will be extra income in Australia.


So many wineries ......so little time :yes:

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so - @rammygirl / Do Australian residents (citizens and PR etc) have to do an Australian tax return? (even if they are on a salary/PAYE style job?), or is this just something we'd need to do because we have a UK house being rented out?

Edited by Captain Roberto

Moved to Sydney.

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Everybody in oz has to fill a tax return in, with regards to UK I would use your accountant, their invoice can be off set against any tax liabilities I think you are less lightly to have any problems with HMRC if you use a accountant.

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I would also say use an accountant to do the Aus return. The allowances on rentals are different here and any losses can be set against your other income. If you can find an accountant qualified for both UK and Aus tax all the better. Again their fees are deductible and will probably get you a better rebate here.


So many wineries ......so little time :yes:

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Get a good agent to manage your property. Don't be tempted to save money by renting your home privately, and/or to a mate. You cannot effectively 'manage' a property from ten thousand miles away. Make sure you sign those ?NRL Tax? forms for HMRC so you get your rent paid free of tax, and use an accountant in OZ for your ATO returns. Their fees are tax deductable, but you will have to declare your income from UK, and pay some tax on it. I can't remember how it works, but I will be declaring both my rental income and my UK pension. And you can claim many deductions on your HMRC return.

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