What about this year's income tax when we move to Australia?
Jun 6th 2010, 6:28 pm
#1
Enjoying living in Perth
Thread Starter
Joined: Jun 2010
Location: Perth
Posts: 24
What about this year's income tax when we move to Australia?
Hi there,
We are planning to move to Australia in October. I was told by a friend that there is some kind of tax agreement between the two countries. He also said that when we leave the UK we could file a tax return in here to get back some of the tax we paid this year (April - September) as we will not work the full year, and in Australia we will have to pay income tax only on what we earn after we move there.
This sounds too good to be true, is this really the case? I thought that we would be double-taxed on our earnings from July to September or at least pay the full year tax on one of the countries because technically that period overlaps the fiscal years in both countries... (well I am far from a tax expert but that is how I understand things)
If this is correct, when should we file the tax return here? Can it be done before we leave?
If anyone knows how this works or have some link to some website that explains the matter, please help!
Cheers,
Luis
We are planning to move to Australia in October. I was told by a friend that there is some kind of tax agreement between the two countries. He also said that when we leave the UK we could file a tax return in here to get back some of the tax we paid this year (April - September) as we will not work the full year, and in Australia we will have to pay income tax only on what we earn after we move there.
This sounds too good to be true, is this really the case? I thought that we would be double-taxed on our earnings from July to September or at least pay the full year tax on one of the countries because technically that period overlaps the fiscal years in both countries... (well I am far from a tax expert but that is how I understand things)
If this is correct, when should we file the tax return here? Can it be done before we leave?
If anyone knows how this works or have some link to some website that explains the matter, please help!
Cheers,
Luis
Jun 6th 2010, 7:59 pm
#2
Forum Regular
Joined: Nov 2008
Location: Queensland
Posts: 109
Re: What about this year's income tax when we move to Australia?
Hi,
Yes you can claim tax back as you won't have used all of your allowance for the year.
I only know this as I have had a quote from some shippers who also told me about this and gave me some contact details for a company who will do it for you - for a percentage of course!
I haven't looked into it yet but I am sure if you phone your nearest tax office they will tell you what you need to do
Can claim back NI too
X
Yes you can claim tax back as you won't have used all of your allowance for the year.
I only know this as I have had a quote from some shippers who also told me about this and gave me some contact details for a company who will do it for you - for a percentage of course!
I haven't looked into it yet but I am sure if you phone your nearest tax office they will tell you what you need to do
Can claim back NI too
X
Jun 6th 2010, 8:53 pm
#3
Lost in BE Cyberspace
Joined: Feb 2009
Location: UK
Posts: 14,284
Re: What about this year's income tax when we move to Australia?
Don't use a company to do this for you, not unless you have extremely complicated financial affairs. Just fill in form P85 in the UK.
I am not aware that there is a provision to get NI back. Perhaps perthhopeful could elaborate on that.
I am not aware that there is a provision to get NI back. Perhaps perthhopeful could elaborate on that.
Jun 6th 2010, 10:49 pm
#4
BE Enthusiast
Joined: Feb 2007
Location: Adelaide
Posts: 677
Re: What about this year's income tax when we move to Australia?
Hi there,
We are planning to move to Australia in October. I was told by a friend that there is some kind of tax agreement between the two countries. He also said that when we leave the UK we could file a tax return in here to get back some of the tax we paid this year (April - September) as we will not work the full year, and in Australia we will have to pay income tax only on what we earn after we move there.
This sounds too good to be true, is this really the case? I thought that we would be double-taxed on our earnings from July to September or at least pay the full year tax on one of the countries because technically that period overlaps the fiscal years in both countries... (well I am far from a tax expert but that is how I understand things)
If this is correct, when should we file the tax return here? Can it be done before we leave?
If anyone knows how this works or have some link to some website that explains the matter, please help!
Cheers,
Luis
We are planning to move to Australia in October. I was told by a friend that there is some kind of tax agreement between the two countries. He also said that when we leave the UK we could file a tax return in here to get back some of the tax we paid this year (April - September) as we will not work the full year, and in Australia we will have to pay income tax only on what we earn after we move there.
This sounds too good to be true, is this really the case? I thought that we would be double-taxed on our earnings from July to September or at least pay the full year tax on one of the countries because technically that period overlaps the fiscal years in both countries... (well I am far from a tax expert but that is how I understand things)
If this is correct, when should we file the tax return here? Can it be done before we leave?
If anyone knows how this works or have some link to some website that explains the matter, please help!
Cheers,
Luis
You won't be taxed twice on anything. You'll only pay Australian income tax on income that you get AFTER you become a resident in Australia for tax purposes (i.e. you land in Australia with the intention of staying for a while).
Cheers
Steve
Jun 7th 2010, 6:56 am
#5
Enjoying living in Perth
Thread Starter
Joined: Jun 2010
Location: Perth
Posts: 24
Re: What about this year's income tax when we move to Australia?
Hi
Thanks for the replies. I didn't know about that form P85 and I found the details about it here:
http://www.hmrc.gov.uk/cnr/r_and_d.htm
It seems to be a straightforward process and it can be done before we leave the UK!
Luis
Thanks for the replies. I didn't know about that form P85 and I found the details about it here:
http://www.hmrc.gov.uk/cnr/r_and_d.htm
It seems to be a straightforward process and it can be done before we leave the UK!
Luis
Last edited by luis_be; Jun 7th 2010 at 8:18 am.
Jun 7th 2010, 7:53 am
#6
Crazy Cat Lady
Joined: Apr 2004
Posts: 65,493
Re: What about this year's income tax when we move to Australia?
Make sure you leave a bank account open so the money can be paid directly to it. Makes life easier and it's always a good idea to leave a UK account up and running.
