Buzzy--Bee

I wonder if I can ask for some help.

Our departure date for Melbourne is being influenced slightly by the tax situation in the UK.

My understanding is that you get just over £5000 tax free to earn in a year, then the next £2000 or so is taxed at 10%.

So by my calculations if I only earned £7000 in one tax year I would be taxed a total of £200.

Does this mean that if I leave the UK having earned £7000 since April 6th 2007 (start of tax year), and complete form P85, I will get all my tax I have paid back except £200?

I rang the inland revenue and they seemed to agree with this although they wouldn't commit to anything.

Any accountants or people who have gone through this able to advise me?

Thanks

Buzzy

wmoore

Yes it does. I can't remember how much I had earned when we left but I got a nice little cheque for almost a grand back from them It actually came through pretty quickly too, which was a surprise. From memory, the form you need is R82. Do a search on the IR's web site for it.

Pollyana

I left my job in October, having worked half the tax year, and I got back pretty nearly half of what I had paid (from memory, seems like aeons ago!)

GinaUK

Yes, you've got it spot on .

Gina

MenAtWork

Does anyone know how it would work if we migrate mid march?

I wasn't expecting anything but wouldn't like to miss out.

Tiggs+Graz

This will depend on your personal circumstances but if you work for an employer and you migrate in march the chances are that you will get nothing (or next to nothing) back (due to tax taken from your wages being worked out over a tax year and you leaving right at the end of the tax year)

Still worth checking though.

Tiggs

cyclemark

Well, as the tax year starts in April, then if you leave in mid-March then you'll have worked virtually the whole tax year anyway, so you'll not have overpaid much at all.

If you're really looking to get tax back, then leaving mid-way thru a tax year will maximise this!

CazBeckham

Hi
Not sure if anyone has the answer but here goes

My Husband took early retirement last year and is now on a pension from his company.
If we end up getting our CPV would it be better to have the pension paid (before being taxed in UK) into an Australian bank once we are there and letting it be taxed in Australia or would it be better to have it taxed in the UK as it is now and just the take home pay (so to speak) be paid into and Oz bank.


Caz

Jimclevs

Caz

Once you get to Australia on your CP visa as Permanent Residents you will undoubtedly be liable for Australian tax but no longer liable for UK tax - there is probably not too much element of choice in this.

Although the Australian tax charges are slightly less favourable than the UK ones there is good news on the horizon as I believe that all income generated from superannuation/pensions will become free of tax from 1 July this year.

I am no expert, however, and would suggest that you still check out the Inland Revenue site for the procedure required to inform them of your intention to migrate and the ATO site for details re the non payment of tax from this July.

Regards

Jim

CazBeckham

Thanks Jim

Will look into the Inland Revenue and ATO

So it looks like by the time we get out there if we had our pension that we are being taxed on in the Uk paid straight into an Oz bank (before tax) we would not be liable for tax in Oz after July 07

Caz

JAJ

Have you any reference for that?

Swerv-o

Hi Buzzy,

I think you have it right. I left in July (the end) and I got a tidy little sum back from the IR. I was doing contract teaching, and being paid weekly, so my weekly tax was overpaid a lot, as it assumes that I would have been earning that each week for the whole year. I think my refund cheque was just over 900 pounds.

Shame I have had to use it to pay off my student loan though

S

Buzzy--Bee

Thanks very much everyone for the info.

Much appreciated.



Buzzy

DrWho

God I hope so...

caleb2003

If I left in Feb and filled in form P85 would I still need to fill in self assesment forms (I do every year due to being a contractor and owning some rental properties)