being paid a bonus in the UK from when you were employed there.
#1
BE Enthusiast
Thread Starter
Joined: Jun 2007
Location: The "Gong"
Posts: 433
being paid a bonus in the UK from when you were employed there.
Hi
I'm due a performance related bonus for the first 7 months of last year.
Since August i have been employed by the same company but here in Aus.
The bonus will be paid in the UK to a UK account in Sterling, but what happens regarding the tax to be paid on it ?
Will it be paid to HMRC, and if so does that mean i do not have to declare it on my Aus Tax return ?
I obviously want to avoid being taxed twice on it !!!
Thanks
Stu
I'm due a performance related bonus for the first 7 months of last year.
Since August i have been employed by the same company but here in Aus.
The bonus will be paid in the UK to a UK account in Sterling, but what happens regarding the tax to be paid on it ?
Will it be paid to HMRC, and if so does that mean i do not have to declare it on my Aus Tax return ?
I obviously want to avoid being taxed twice on it !!!
Thanks
Stu
#2
Forum Regular
Joined: Oct 2007
Location: Melbourne
Posts: 101
Re: being paid a bonus in the UK from when you were employed there.
I was in the same situation this time last year and didn't say a word to the ATO as I'd already been taxed on it in the UK. Spent the money paying off UK based debt so my view was it was of no concern to the tax office here. Enjoy it!
Edna x
Edna x
#3
Re: being paid a bonus in the UK from when you were employed there.
As far as I'm aware you have to declare all foreign income on your tax return in Oz, you certainly do on the Family Tax Benefit paperwork.
But we have been told by an accountant that there is a reciprocal agreement to avoid paying double tax, so if you declare it to the Oz tax man and state what tax you paid in the UK, there shouldn't be any extra to pay.
But if in doubt ask an accountant or the tax office, from what I've read on here over the last few years they are quite vigilant to ensure all correct taxes are collected.
Sam
But we have been told by an accountant that there is a reciprocal agreement to avoid paying double tax, so if you declare it to the Oz tax man and state what tax you paid in the UK, there shouldn't be any extra to pay.
But if in doubt ask an accountant or the tax office, from what I've read on here over the last few years they are quite vigilant to ensure all correct taxes are collected.
Sam
#4
Re: being paid a bonus in the UK from when you were employed there.
it is possible that you will be overtaxed in the UK, especially if that is your only income for the 2008/09 tax year, you may be able to claim some back
#5
Re: being paid a bonus in the UK from when you were employed there.
Credit is usually available for any foreign tax suffered.
However, it might be worth getting some professional advice as to whether this definition extends to amounts from a foreign employment which ceased before becoming tax resident of Australia. That said, if still employed by the same company, it might be a difficult argument to make even on the chance that such argument might otherwise be successful.