Quick UK Tax Question
 

If in the last financial year you have earned nothing in the UK and you then receive a gratuity payment from a job you have still not resigned from, but are on a career break from, I take it there'll be no tax payable on that payment as you haven't paid a penny of tax that year as it is? The taxt free threshold, in other words, hasn't been crossed, so no tax should be payable? I doubt it'll be anything over £1000 and may not even be a few hundred lol

Sorry for the above dribble but I'm not sure of the lingo lol

Re: Quick UK Tax Question
 

You will still be liable for Australian tax.

The ATO tax your WORLDWIDE income so it should be declared.

Re: Quick UK Tax Question
 

The money will be staying in the UK, so if the UK tax and NI me it, should I just let ATO know I've already been taxed and NI'd? I'm not trying to do anything dodgy here, don't worry! Its from the PSNI (Police) so I'm as honest as they come govna! lol

Re: Quick UK Tax Question
 

Doesn't matter where the money is...the ATO will still want to tax it as income.....you should be able to get credits for any UK tax paid as there is a double taxation agreement between the two countries.

Re: Quick UK Tax Question
 

I received a good tax return from the HMRC because I did't work a full tax year. I wonder if the ATO will want to get the grubby little mits on that?

Re: Quick UK Tax Question
 

ATO can't touch your UK tax return as it's not income as such, more that u paid too much tax in the first place!

Re: Quick UK Tax Question
 

Jen- dont forget that your renting out of your property also counts as income, so it wouldnt be quite true to state that you hadnt earned any income in the last tax year.

Re: Quick UK Tax Question
 

I'm at a loss of over £100 a month, not quite an income lololol

Re: Quick UK Tax Question
 

Also, ATO are very well aware of my house from my last tax return, and will be made aware this year that I've been paying the mortgage this last few months too lol

Re: Quick UK Tax Question
 

Remember that actual income and taxable income are two different things - i.e. not all your payments out might be deuctible for income tax purposes

Re: Quick UK Tax Question
 

I'm aware of that ta, this will be my second Aussie tax return...

Re: Quick UK Tax Question
 

You have been tax resident in Australia from the date you arrived here. If you receive the gratuity payment after the date you arrived in Australia, then 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.

Here is the link to the form you use to get back the tax. The form is called R43 and is for non-residents (that's you ):
http://search2.hmrc.gov.uk/kb5/hmrc/...Rk&formId=3475

There used to be a form for claiming back overpaid NI, but I see they have withdrawn that and you now send a letter as follows:

HM Revenue & Customs
Payment Reconciliation
National Insurance Contributions Office
Benton Park View
Newcastle upon Tyne
NE98 1ZZ

Make sure you sign your letter and include:

•why you think you've overpaid [Jen: write that you are no longer tax resident in the UK, because you emigrated to Australaia on xx date and are tax resident in Australia]

•which tax years and which class(es) of National Insurance contributions you think you overpaid [Jen, you overpaid Class 1. UK tax years run from 6 April to 5 April (work out which year it is from the date of the payment)]

•your National Insurance number

•if you're employed - a P60 or statement from your employer(s) showing National Insurance contributions deducted from your wages during the tax year (Class 1) [Jen: send them a copy of the payslip or letter that came with the gratuity payment and that shows the amount of tax and NI deducted]

If you need help call the National Insurance Enquiries for Individuals Helpline on Tel +44 845 302 1479. Lines are open Monday to Friday from 8.00 am to 5.00 pm.

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

Re: Quick UK Tax Question
 

WOW thank you, you're always there to offer advice! It's appreciated! Just hope someday I can do the same in return! :)

Re: Quick UK Tax Question
 

Another quick question re tax. Because I'm a relief teacher I've started the whole saving malarky just in case I end up without work in the future, at present I've saved about 4k, when it comes to my Aussie tax return does this become a factor?

Re: Quick UK Tax Question
 

When it comes to the end of June, the bank will provide you with a statement (some do this online) on how much interest you earned on your savings.

You put the interest amount into your tax return - and yes, you pay tax on it ;).