One for Hutch!
 

Hutch, I am hoping you will be able to tell me that there is a way around this little problem.

A veterinary journal I used to write for in the UK have said I can do a follow up article to something I did a while ago, with the chance of consideration for future articles.

They don't pay a huge amount - they are only a small publication within the veterinary sector.

Now someone told me that even though they will pay me in UK pounds and Westpac buy the cheque off me for a very good rate, Australia class it as a second income and will want half of it.

If that is true then I would rather do it for nothing because 50 percent of what I get for doing the article isn't really worth my while.

However, if those are the rules then so be it.

I was wondering if journalism for the UK market was your only job or second job and what you would advise me to do?

I don't at the moment write enough to make it my only income but I would like this to change in the near future, I just don't know how to go about it.:unsure:

Any advise welcome Hutch.:wub:

Re: One for Hutch!
 

Doesn't it just get added into the melting pot and then you do a tax return at the end of the year and declare it on there... You'll just pay tax at your marginal rate I'd have thought... There's a bloke that works for me that also works for Woolies and I'm damn sure he wouldn't if the ATO was nicking 48.5%...!

Re: One for Hutch!
 

That is what I need to double check but our accounts dept said the tax on a second income is really high.

I shall double check it.:eek:

Re: One for Hutch!
 

As far as I understand it you are right. I think tax on second income is around 50% mark and then they sort out anything you have overpaid at lodgement time.

Re: One for Hutch!
 

Why don't you just build up a bit of cash in an English bank account and leave it there for special occasions? You can then draw on it for internet purchases or for when you go back on holidays...

Re: One for Hutch!
 

It will mean doing tax returns from Australia and from my experience, I have had nothing but hassle from Inland Revenue who on my last tax return, denied ever receiving it - despite it being couriered, proof of signature and a name 'No, we never received it, you will have to do it again':eek:

When they eventually realised that yes they did have someone of that name that had signed for it and yes, it was received, they asked for full contact details in Australia for the future in case they needed to sort out any problems with the tax return. They seemed quite upset when I said I wouldnt be going back to the UK to sort out tax issues and best they make sure it is all accurate now.

Luckily the return was processed just fine but last year, I had letters from different tax offices all asking for info - complete cock up with all of them. I had to write to them with the info and couriered it, yet again they denied it and made me send it a further 3 times:eek:

On the fourth time, he said could I send it for the final time? I refused and told them that as they had lost 3 of the letters, it would be best if they concentrated on finding those rather than me do a 4th one.

The mere thought of dealing with IR in the UK makes me feel sick.:eek:

I shall talk to an accountant here and see what is what.:unsure:

Re: One for Hutch!
 

The tax deducted on second jobs is around 48%. This is because you can only claim the tax-free allowance from one employer at a time.

However this does not mean that you lose the 48% for ever. At the end of the tax year it all sorts itself out, the end result being that you'd pay tax on any extra income at your marginal rate (you'd get a rebate for any tax amount overpaid).

BUT as it's a UK company who'll be paying you, there's no way that they'll be deducting 48% tax and sending it to the ATO - you'd just receive the gross amount. It will be up to you to declare this gross amount on your Australian Tax return and pay any tax due. This will be at your marginal rate.

Re: One for Hutch!
 

What you've been told is not true. The most you'd pay is your normal rate of tax and you would declare it on your tax return.

However. It sound like a hobby to me and if you can convince the ATO of that then it's tax free.

Don't bother with accountants, etc. just give the ATO a call describe the situation and ask them what you should do. As I said the worst that will happen is you'll get hit with the normal rate of tax.

Re: One for Hutch!
 

Absolutely spot on! Writing a one-off article for a vet magazine and getting a small honorarium is not a second income! It comes under "hobby" and is tax free.

Gina

Re: One for Hutch!
 

Nice one:thumbsup:

I am hoping now I have settled to do some more writing, I have my Aussie press pass as well as my UK one but havent had the time to apply myself really.

So yes I reckon I can convince them it is a hobby and then if/when I become more established then I will review the situation accordingly.

Thanks everyone, this has been most helpful:thumbsup:

Re: One for Hutch!
 

Yea - what the last couple of posters said holds true. In my case I still do a fair bit so it all goes through the books and I pay tax in both countries due to the dual-tax agreement. It's a monumental pain in the arse to be honest. :frown:

Re: One for Hutch!
 

So you write for UK media, pay UK tax man and then give Australia a slice - Jesus, I hope its worth it:(

The veterinary journal would be a monthly thing for me, I might just do the follow up article and leave it at that. I cant be doing with dual tax payments.

Re: One for Hutch!
 

Yea - basically - you submit your tax return twice and then if it would be more in OZ then you pay the extra, if it would be less then you do nothing.

Re: One for Hutch!
 

No need for you to pay tax in the UK: you are neither resident nor domiciled in the UK.

HMRC still "invite" you to do a UK tax return every year. But that's simply sent out by computer. And as long as you complete it each year, the computer will send out another notice next year.

Write to your former tax office and tell them how long you've now lived in Oz, that you haven't been back to the UK, have Oz citizenship and ask them to cancel the annual tax return notice in the computer.

Then just include the UK income on your Oz tax return.

Gina

Re: One for Hutch!
 

All good advice Gina, but for the fact that we operate a UK ltd company. :)