Carrianne

I shall be getting a bonus from work sent to me by cheque a month after I arrive, can i just pay this into the bank or will i be taxed on it ? it will be in GBP ?

Is there ways to get round the tax if it is taxed ?

rajj

If its not too big an amount, just have it banked in the UK and withdraw it using your bank card from here. (or is that too simple??)

Alan Collett

Hello Carrianne.

My initial reaction is that I would expect your ex-employer to deduct basic rate tax from the bonus under the PAYE scheme.

I also think it would probably (note - not definitely: I'd want to review the question in more detail before being categoric) be assessable as income in Australia (=> not good news). Can you ask for the payment to be made to you before you move?

Also, the currency has no relevance to the income tax treatment of the bonus.

Best regards.

walaj

Like Alan I would think that you would receive the amount post UK tax.

On the ATO website I did come across "Foreign employment income derived by Australian residents may be exempt from Australian tax if the income was derived when the person was employed continuously in a foreign country for more than 90 days."

But as I am not an expert on Australian tax, there could easily be reasons for the exemption not to apply. eg the reason for the payment see foreign lump sum payments para

http://www.ato.gov.au/individuals/co...782.htm&page=1

Carrianne

Hi,

Thanks guys and oh bugger, unfortunatley they cannot pay it before as it is profit related work bonus that is given yearly. So I will be taxed on it what a shame. Will I get the UK tax back on it ?

wizzywozza

If you bank a Sterling cheque in Australia it will take 30 days minimum to clear. I am waiting for one to clear now so I can go go for some retail therapy!