And finally...

[mt9754]

This email thread implies you can continue to do self assessment for the UK online even after losing UK tax residency, is that right? 

I thought i read that tax returns have to be done on paper if you are no longer a UK tax resident.

On the Gov UK site it says:

Sending a Self Assessment tax return

You cannot use HMRC’s online services to tell them about your income if you’re non-resident. Instead, you must do one of the following:

• fill in a Self Assessment tax return and an SA109 form and send by post
• use commercial Self Assessment software that supports SA109 reporting (this may appear as a ‘residence, remittance basis etc’ section)
• get a tax professional to report your UK income for you

Edited February 20, 2021 by mt9754
adding info

[Marisawright]

38 minutes ago, mt9754 said:

This email thread implies you can continue to do self assessment for the UK online even after losing UK tax residency, is that right? 

You are right, if overseas you are not supposed to do self assessment.  

[Jon the Hat]

Finally we have completed our house sale and moved into a rental!  Utterly exhausted, and we need to get rid of a lot of stuff before we move to Aus... 

[ali]

6 hours ago, Jon the Hat said:

Finally we have completed our house sale and moved into a rental!  Utterly exhausted, and we need to get rid of a lot of stuff before we move to Aus... 

Great news.  We utilised the 'free' advertising paper when we were de-cluttering, got rid of heaps that way.  We did have a guy come round twice and in the end he asked "what else are you getting rid of it might save us a trip".

[Wanderer Returns]

On 06/03/2021 at 03:40, Jon the Hat said:

Finally we have completed our house sale and moved into a rental!  Utterly exhausted, and we need to get rid of a lot of stuff before we move to Aus... 

What are you shipping anything over, Jon? If you are going to use a container (half a container), then you may as well ship everything over. Generally, stuff is quite expensive here, unless you buy a lot of cheap cr@p from China.

[Wanderer Returns]

On 20/02/2021 at 17:18, mt9754 said:

This email thread implies you can continue to do self assessment for the UK online even after losing UK tax residency, is that right? 

I thought i read that tax returns have to be done on paper if you are no longer a UK tax resident.

On the Gov UK site it says:

Sending a Self Assessment tax return

You cannot use HMRC’s online services to tell them about your income if you’re non-resident. Instead, you must do one of the following:

• fill in a Self Assessment tax return and an SA109 form and send by post
• use commercial Self Assessment software that supports SA109 reporting (this may appear as a ‘residence, remittance basis etc’ section)
• get a tax professional to report your UK income for you

No, I was asking if I need to declare the sale of my primary residence in the UK to the HMRC because I'm no longer resident there for tax purposes. My house was sold a year after I left. The total gain is about £10,000, so there would be no CGT due anyway. I was wondering if I still needed to notify HMRC of the disposal?

[mt9754]

On 07/03/2021 at 08:02, Wanderer Returns said:

No, I was asking if I need to declare the sale of my primary residence in the UK to the HMRC because I'm no longer resident there for tax purposes. My house was sold a year after I left. The total gain is about £10,000, so there would be no CGT due anyway. I was wondering if I still needed to notify HMRC of the disposal?

Ah i see, from reading the gov website I believe if you receive any income in the UK (rent, sale of house etc) then it should be declared (regardless of tax residency status) but i’m new to all this too.

[Jon the Hat]

On 06/03/2021 at 21:58, Wanderer Returns said:

What are you shipping anything over, Jon? If you are going to use a container (half a container), then you may as well ship everything over. Generally, stuff is quite expensive here, unless you buy a lot of cheap cr@p from China.

Yes we will bring a container, the question is is it 20ft or 40ft.  I good chance for a clear out anyway.

[DukeNinja]

On 07/03/2021 at 07:58, Wanderer Returns said:

stuff is quite expensive

Not necessarily. We found Ikea to be slightly cheaper than back in the UK for our 5 seater couch.

Some new cars are cheap too. Our first car was a VW Golf Trendline for $24k.

A single train fare from Bayside to Brisbane is less than $5.

[Paul1Perth]

12 hours ago, DukeNinja said:

Not necessarily. We found Ikea to be slightly cheaper than back in the UK for our 5 seater couch.

Some new cars are cheap too. Our first car was a VW Golf Trendline for $24k.

A single train fare from Bayside to Brisbane is less than $5.

There is lots of second hand, good quality "stuff" going cheap and doesn't seem to be so much of a stigma in buying second hand here.

My son moved from Newcastle back to Perth last year. He's paying about the same for a 2 bed apartment in Scarborough with views down the coast as he did for a 1 bed place in central Newcastle. He got a really nice lounge, outdoor furniture setting for the balcony second hand, didn't pay much at all and they both look almost new. When his ex moved back to Newcastle he couldn't be bothered to try and sell a bed she'd left and took it to the local Salvos. 

You could probably get kitted out pretty cheap from Cash Converters and Salvos. Even TV's, amplifiers, surround sound systems, in Cash Converters.

[Marisawright]

13 hours ago, DukeNinja said:

Not necessarily. We found Ikea to be slightly cheaper than back in the UK for our 5 seater couch.

Depends entirely on the exchange rate!   It's easy to check prices, just do a trial shop on Ikea.com.au. 

However you also need to be aware that prices in Ikea don't give much indication of prices in other furniture shops.   Harveynorman.com.au is a good place to check out.  If you're willing to buy cheap stuff that does the job short-term, try Amart or Fantastic Furniture (but TBH if that's your price range, I'd stick with Ikea - it will last longer).

Second hand stuff varies depending on where you are in Australia - as we often say, every state and even every town is different. When we lived in the country, second-hand stuff was like gold dust because everyone wanted it (since buying new meant a trip to the city).  

[Wanderer Returns]

On 08/03/2021 at 23:12, DukeNinja said:

Not necessarily. We found Ikea to be slightly cheaper than back in the UK for our 5 seater couch.

Some new cars are cheap too. Our first car was a VW Golf Trendline for $24k.

A single train fare from Bayside to Brisbane is less than $5.

You're right Duke, there are deals to be had, and certain things here are surprisingly much cheaper than in the UK. It costs about $10 one way from Landsborough to Brisbane, which is almost 100km. You'd pay an arm and a leg for that distance on British Rail - or whatever it's called these days!

Edited March 13, 2021 by Wanderer Returns

[Wanderer Returns]

On 09/03/2021 at 11:29, Paul1Perth said:

There is lots of second hand, good quality "stuff" going cheap and doesn't seem to be so much of a stigma in buying second hand here.

My son moved from Newcastle back to Perth last year. He's paying about the same for a 2 bed apartment in Scarborough with views down the coast as he did for a 1 bed place in central Newcastle. He got a really nice lounge, outdoor furniture setting for the balcony second hand, didn't pay much at all and they both look almost new. When his ex moved back to Newcastle he couldn't be bothered to try and sell a bed she'd left and took it to the local Salvos. 

You could probably get kitted out pretty cheap from Cash Converters and Salvos. Even TV's, amplifiers, surround sound systems, in Cash Converters.

Yes, indeed. We've found some wonderful stuff in the op shops in/around Caloundra, to supplement our rental apartment 

[Wanderer Returns]

On 08/03/2021 at 22:41, Jon the Hat said:

Yes we will bring a container, the question is is it 20ft or 40ft.  I good chance for a clear out anyway.

We had a 3-bed semi and we got it all in a 20 footer with room to spare in the end.

[Ausimi]

On 19/02/2021 at 08:11, Wanderer Returns said:

I'm certainly not against paying for tax advice in principle, but in practice is it worth it if one's affairs are straightforward? My UK house is now sold, and the only thing I have remaining over there is my UK private pension, and an ISA which I no longer contribute into. I didn't own any property other than my primary residence, and now that's sold I only intend to buy one property over here and then live in it - which I know is a radical concept in this day and age!  My only source of income is through employment here in Australia, and I'm on PAYG. If anyone can explain how I might benefit from a visit to a tax consultant, I'll certainly go and see one.

I’m going to be in pretty similar position, diffidence being we are going to rent out our property in the Uk and pay rent in Australia until we decide the move is definitely permanent then probably sell here in the uk and buy there. I have never dealt with taxes here in the uk because working for the nhs they just do it all and I never pay attention to my payslip. I don’t even understand it! 
This is going to be a new world for me!!!
same goes for what to do about my pension here! It’s been always with the nhs and I don’t understand how it works! 
I’ll better start looking into it before time runs out! That is I f we ever get to board a plane in the middle of the pandemic! 
 

 

 

 

 

 

[Marisawright]

6 hours ago, Ausimi said:

I’m going to be in pretty similar position, diffidence being we are going to rent out our property in the Uk and pay rent in Australia until we decide the move is definitely permanent then probably sell here in the uk and buy there. I have never dealt with taxes here in the uk because working for the nhs they just do it all and I never pay attention to my payslip. I don’t even understand it! 
This is going to be a new world for me!!!
same goes for what to do about my pension here! It’s been always with the nhs and I don’t understand how it works! 
 

Don't stress about tax.  You will have a bit of a headache for the first few years until you sell your UK property, because you'll have to do a tax return in both countries.  However, unless you're a whizz with numbers there is no point in even trying to do it yourself.  Best advice is to contact @Alan Collett or @Ken and pay them to do them for you.  It is a cost, but it's likely to cost you more if you DIY and get it wrong. Plus, their fee is tax deductible the following year.

Once you've sold the property and your only income is an Australian pay cheque, the whole thing gets a lot simpler.  Australians make a big deal about claiming deductions but in reality, most people can't claim much at all so it's not worth getting your knickers in a knot over.   Once you get to that point, you'll find you can do it online yourself.

As for your NHS pension:  get professional advice.  You can lose a truckload of cash transferring a UK pension over to Australia, so you may end up just leaving it sitting there, and you'll get a pension from it when you retire.  

[SPRINTER]

Totally agree with Marisawright's comment having been through a similar situation, a knowledgeable accountant is well worth the cost especially one with knowledge of UK and Australian tax systems.

[Ken]

On 20/02/2021 at 18:58, Marisawright said:

You are right, if overseas you are not supposed to do self assessment.  

No, you still have do self assessment if you are overseas but have UK income, it's just that HMRC don't provide a facility to complete the extra forms needed online so you either have to complete a paper return or pay for commercial software that's been developed to complete the extra forms.

Note that the forms needed are downloadable from the HMRC website even if you don't have a login.

[Ausimi]

8 hours ago, Marisawright said:

Don't stress about tax.  You will have a bit of a headache for the first few years until you sell your UK property, because you'll have to do a tax return in both countries.  However, unless you're a whizz with numbers there is no point in even trying to do it yourself.  Best advice is to contact @Alan Collett or @Ken and pay them to do them for you.  It is a cost, but it's likely to cost you more if you DIY and get it wrong. Plus, their fee is tax deductible the following year.

Once you've sold the property and your only income is an Australian pay cheque, the whole thing gets a lot simpler.  Australians make a big deal about claiming deductions but in reality, most people can't claim much at all so it's not worth getting your knickers in a knot over.   Once you get to that point, you'll find you can do it online yourself.

As for your NHS pension:  get professional advice.  You can lose a truckload of cash transferring a UK pension over to Australia, so you may end up just leaving it sitting there, and you'll get a pension from it when you retire.  

Thank you! That’s good advice, I haven’t decide if I want to sell in the Uk, is it worth to have a small income from here?

re. Pensions what would be a good place to ask advice?

 

 

 

 

 

[Marisawright]

2 hours ago, Ausimi said:

Thank you! That’s good advice, I haven’t decide if I want to sell in the Uk, is it worth to have a small income from here?

re. Pensions what would be a good place to ask advice?

It's not so much the income, it's the question of what would you do with the money if you sold?  A rental property can be a good investment and if you've already got it set up, with good tenants, you have to ask yourself whether you could earn a better income anywhere else.   If yuo keep the property long-term, then there will be capital gains tax to pay when you finally sell. But let's face it, if you're paying capital gains it's because you made a nice profit, so it's not all bad news.

Pensions - @Andrew from Vista Financial is the man. 

[Wanderer Returns]

On 19/03/2021 at 13:26, Ausimi said:

I’m going to be in pretty similar position, diffidence being we are going to rent out our property in the Uk and pay rent in Australia until we decide the move is definitely permanent then probably sell here in the uk and buy there. I have never dealt with taxes here in the uk because working for the nhs they just do it all and I never pay attention to my payslip. I don’t even understand it! 
This is going to be a new world for me!!!
same goes for what to do about my pension here! It’s been always with the nhs and I don’t understand how it works! 
I’ll better start looking into it before time runs out! That is I f we ever get to board a plane in the middle of the pandemic! 

I assume you (and your family) will be arriving as permanent resident(s)?

If that's the case then you will be better off selling your property in the UK rather than renting it out. This is because you may well have to pay capital gains tax when you finally come to sell it, but more importantly all your UK rental income will be taxed here in Australia at the highest rate of tax you pay. Depending on what you're earning over here, you could see half your rental income disappear in agent's fees and income tax, and you will most likely have to pay a lot more in rent here than you could rent your UK property out for.

By holding on to your UK property you are also more susceptible to a knee-jerk reaction if things start to get tough, or you feel homesick, rather than giving Australia a fair role of a dice. Trying to keep a foot in both camps is one of the main reasons so many Poms 'ping-pong'  because they create a situation where they feel unsettled. Trust me, I've been back and forth a few times myself!  

Edited March 20, 2021 by Wanderer Returns

[Marisawright]

39 minutes ago, Wanderer Returns said:

If that's the case then you will be better off selling your property in the UK rather than renting it out. This is because you may well have to pay capital gains tax when you finally come to sell it, but more importantly all your UK rental income will be taxed here in Australia at the highest rate of tax you pay.

Why do you say that?   The rental from the UK property is treated exactly the same as rental from an Australian property would be.    So how much tax you pay will depend on how much you're earning and how you handle your tax affairs.  

As for capital gains, your primary residence is tax free for six years, so there will be no Australian capital gains to pay if they sell it before then.  Even if they hang onto it, you don't pay capital gains if you don't make a profit!  

[Ausimi]

5 minutes ago, Marisawright said:

Why do you say that?   The rental from the UK property is treated exactly the same as rental from an Australian property would be.    So how much tax you pay will depend on how much you're earning and how you handle your tax affairs.  

As for capital gains, your primary residence is tax free for six years, so there will be no Australian capital gains to pay if they sell it before then.  Even if they hang onto it, you don't pay capital gains if you don't make a profit!  

Thank you guys! This is all a new world for me! 
 When you say “make profit” what does it mean? The equity after paying off the mortgage? Because our mortgage is very small so almos all the sale value is ours. 
it’s a small house.

[Ken]

41 minutes ago, Ausimi said:

Thank you guys! This is all a new world for me! 
 When you say “make profit” what does it mean? The equity after paying off the mortgage? Because our mortgage is very small so almos all the sale value is ours. 
it’s a small house.

For Australian Tax Purposes your Capital Gain on an asset for an immigrant will normally be the difference between its value when you took up residency in Australia (as a Permanent Resident) and its value when you sold it. If however you lived in the property before moving to OZ you can claim the private residence exemption for up to six years after you ceased to live there. Up to because you can only have one private residence at a time, If you've bought a new property to live in it's normally best to treat that as your private residence. Your mortgage isn't part of the equation as to whether or not you've made a profit on the sale.

[martl_2001]

On 13/03/2021 at 09:47, Wanderer Returns said:

We had a 3-bed semi and we got it all in a 20 footer with room to spare in the end.

What level of stuff did you bring? Are we talking sofa, beds, wardrobes inc smaller stuff, or just mostly boxed things? Interested as I can never fathom what size is required.