iNBETWEENER

Hi all - I couldn't find an 'Aussies in the UK' forum as good as this one so thought I'd give you guys a go! I am British, lived in Australia for a number of years, became a citizen, came back to the UK, where I have been living for almost 5 years.

I have a bank account in Aus still, as I visit quite regularly so just left it there. I was recently asked by my UK bank to let them know if I was liable for tax in other countries (just an admin thing - they prob know I lived elsewhere), and I realised that maybe I was....?

I have no income other than the interest on my savings, but I haven't done a tax return in years as I didn't think I had to. I don't do a tax return in the UK, so I haven't been declaring the interest on my savings anywhere.

So! Anyone have a view on what I should do? Do I contact the ATO? A I likely to get I trouble? Do I just give the UK bank my TFN and hope for the best? I mean its not a huge amount of money -my interest income isn't exactly close to the minimum income tax threshold in Aus, but combined with my UK income it could be an issue? Just not sure how to proceed and remedy.

Thanks in advance!

inbetweener

rammygirl

Your Aus bank should be deducting a 10% withholding tax from your interest. I assume they know you are no longer resident? If this is your only Aus income then you do not need to do an ATO return.

Any interest from Aus ( along with any income from anywhere in the world) is liable for U.K. Tax. As UK and Aus have an agreement the U.K. will count the 10% as tax paid and only tax any excess due.

So the answer to the question you have been asked is 'yes' I do have interest from overseas.

iNBETWEENER

Thank you, much appreciated.

I suppose I don't know for sure where my Aus bank thinks I am resident - I have had no income in the account for years and I have certainly never told them I am resident in Aus (in branches I have def mentioned that I live overseas) so presumably they know.

Do they only keep the 10% withholding tax if you are resident overseas or is that for everyone?

I

rammygirl

Only for non residents. Surely you know what address they hold for you? Where do they send new bank cards etc?

iNBETWEENER

To be honest, I don't know. I don't get postal statements. I am sure that I have given them UK in the past, and told them that I'm in the UK (informally at least) but I def gave them an Aus address recently to send me a new bank card just before i went out for a visit (in my experience bankcards don't travel well). When I just checked online there wasn't any address on it, so who knows. I just changed it so I guess they might get in touch if a UK address is noteworthy.

Do you know what is likely to happen if they don't realise I'm no longer resident and they don't have the 10% withholding tax?

spuddyo

Maybe give them a call on a trusty old phone and ask the bank to confirm your details. If nothing else it will be good fun to see how their 'associate' in India' responds to your questions. I would do it just to wind them up.

Beoz

You probably should be. Is it worth the effort every year? Nope. Maybe do one every 5 years or so. Assuming its a few thousand, you would hope they have bigger fish to fry.

Alan Collett

https://www.gov.uk/self-assessment-t...d-a-tax-return

Requirements for lodging a UK Self Assessment tax return are here ...

Best regards.