Jules13OJ Posted January 17 Share Posted January 17 New to this forum so sorry if this has been asked before but chasing round in circles trying to understand... Have just started a new job in WA-16th Jan 2024- on a 482 skills shortage temporary visa. Contract is 4 years. I was a teacher in UK until December 31st 2023. I claimed my Teachers Pension in January this year and it will now be paid monthly going forward. I have always worked in UK. I am trying to understand how the tax works. I have done the Australian online ' test' which makes me an Australian resident for tax purposes but it also makes me a temporary worker because of my visa ( and therefore as I understand it, Australia will not try to tax my UK pension) Having looked at HMRC site though, it also seems to make me a UK resident for tax purposes becuase I spent 183 days+ in UK between April 2023 and now. Can I be a tax resident in both? Aware of the reciprocal tax agreement but no idea how it works- are there forms? I have also read about split tax and looked at the case studies. I would fulfil the critera for case study 1. However, when I read about applying for split tax status it says you have to do this through self assessment. I have never done self assessment as I have always been employed. Do I have to apply? I spoke briefly with a tax advisor in UK before leaving and he just said 'your UK income will be taxed in UK and your Australia income will be taxed in Australia' Is it as simple as that? I have also been told I should submit a P85 to claim an income tax rebate although not sure if that applies to me as I will pay tax on my UK pension- I think?? Really not sure whether I should be doing anything or not and too much Googling is making me even more confused! If anyone has been in a similar position, or has advice to offer, I would be very appreciative! Thank you 1 Quote Link to comment Share on other sites More sharing options...
paulhand Posted January 17 Share Posted January 17 Have a word (or several) with @Alan Collett - he’s the go to guy for this type of stuff. 2 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 17 Share Posted January 17 7 hours ago, Jules13OJ said: I spoke briefly with a tax advisor in UK before leaving and he just said 'your UK income will be taxed in UK and your Australia income will be taxed in Australia' Is it as simple as that? On a permanent visa, it's certainly not as simple as that. On a temporary one, it may be that simple, but I don't think it's safe to assume. We've had members end up with fines for getting it wrong. For your first tax return in Australia, it's always wise to get a tax agent to do it for you anyway, because it's so different to the UK version, so I'd find an agent that knows both Australian and UK tax. They're think on the ground, but Alan C is one. 2 Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted January 17 Share Posted January 17 10 hours ago, Jules13OJ said: Can I be a tax resident in both? Aware of the reciprocal tax agreement but no idea how it works- are there forms? Yes, you can be classed as a tax resident of more than one country at the same time. When you have dual tax residency the relevant double tax agreement (in this case UK-AUS) should determine your country of residence for tax treaty purposes, and which country has taxing rights over certain classes of income. It means that you shouldn't be taxed on the same income twice, but you will likely end up paying the higher amount of tax due (if that makes sense). As mentioned above, find a tax professional who has experience in both the UK and Australian systems for the 2023/24 tax year, after which you're probably going to be solely an Australian resident for tax purposes and it will be more straightforward. If you don't mind me asking, why would you start drawing your UK teacher's pension if you're still working? Quote Link to comment Share on other sites More sharing options...
Jon the Hat Posted January 18 Share Posted January 18 That is complex. Yes you will need to complete a self-assessment, and everyone has to submit a return in Australia. I would definitely be getting professional advice and I am an accountant. ON reflection I should have when I moved as it took me ages of research to get the tax split right. You also cannot file the UK self assessment online from overseas without buying software so you might as well use a pro. @Alan Collett is well recommended. 2 Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted January 21 Share Posted January 21 Thanks for the kind recommendations - is appreciated. Best regards. Quote Link to comment Share on other sites More sharing options...
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