BS is an accountant, so I'd like to think she's sure lol

I'll leave you to it then.

I am absolutely sure that a tax return is about income tax not NI, yes.

I am not 100% sure about whether NI is due, my feeling is that it probably is, but there are nuances about the specific situation and I would have to read about it. So far not found anything covering this scenario though.

Yes, you can declare the costs (including mortgage interest as long as you declare the income too!

Never had any income from the house, I'm about £100 out of pocket every month even with a tenant!!!

Hi Jenn,

You do not have to pay UK tax or UK NI on the gratuity payment. But your ex-employer is likely to automatically deduct both and pay you the net payment.

You can claim back both tax and NI. You do not need to lodge a UK tax return - there is a form for non-residents to claim back tax and you lodge that.

There is also a form to claim back NI. I will have a look later for the forms and send you the links.

When you do your Aus tax return, you then declare the UK gratuity payment as foreign income.

If you need any more info, send me a PM.

Can you explain that in the context of the double taxation agreement?

I recall you have previously stated that people are not liable to tax on UK rental income too.

Yep, as long as the house is "available for rent", you can claim all the expenses, i.e. mortgage payment, agent fees etc

On the gratuity question: I found the forms straight away and have sent you the links in a PM. You'll get back all the tax and NI deducted - and it will be worth claiming it back .

Sorry, but although you get your uk allowance in the uk when it comes to
Oz they do take tax already paid into account BUT they will not take any notice of UK tax free amounts.

Ie: any of your uk earned income less then allowance no uk tax to pay BUT if you've already earned your full OZ allowance then ATO will tax the uk amount at your prevelant OZ rate.

It's going into my UK account and might never enter Australia, does that count?

nope. you have to declare uk income on your annual tax form. Its a b*t*h and I think totally unfair and it stings us a fair bit too but thats the rule

Okies, I don't expect it to be much so there'll not be much stinging lol

You only pay tax if you make a profit. Why is that unfair?

Its unfair that i should have to pay tax to a country where I do not earn the money or even bring the money to.

I pay it in the country it is and was earned. That's fair enough.