XcitedM

Hi All

I apologise if the answer is in a thread already but I cannot find it.

My company is initially sending me over to cover maternity leave on a 457 for 14 mths (but might sponsor me for longer once there).

I have just called HMRC and been told that I will be classed as UK resident on a sponsored 457 visa as my secondment period is Aug 07 to Oct 08. Apparently you have to be away for a full tax year to be classed as non-resident.

So, I will be taxed as normal here in the UK on my income in Australia less any tax already paid to ATO.

But I am confused ... If I am classed as Aust resident on a 457 how can I be a UK resident too? And how does this affect my LAFHA? Does it mean that the ATO won't tax my LAFHA but the HMRC will??!!! And what happens with rental income here in the UK?

Any help would be much appreciated (am now worried about getting a huge tax bill)...

Thanks

JAJ

It is possible to be tax resident in two countries. Usually it means you pay the higher of the two taxes.