Minimal income in UK while living in Aus - how does this affect my tax return?

[lozzachino]

Hi All

 

I am employed and pay tax as normal in Australia. I've just been offered an extra writing job in the UK whereby they will pay me a small amount each month (max 80GBP per month). This will go straight into my UK account and just stay there, I won't be bringing it over to Australia.

 

Do I need to complete a UK tax return if I am earning in the UK or only if my earnings are over the current tax free allowance?

 

Also, do I then need to declare this income on my Australian tax return? if so, how do I calculate the rate in dollars? At the exchange rate each time I am paid or as the exchange rate for all payments at the time I do the tax return?

 

If anyone can shed some light on this that would be great! Google is not really helping me and the HMRC website isn't either. Technically I'm not self employed and my income will never exceed my tax free allowance in the UK, but perhaps I don't get a tax free allowance there as I live in Australia now?

 

Thank you!

[Rossmoyne]

I have absolutely no idea, but logic would assume that as you are earning in Australia and paying tax here, any money you earn in UK that stays in UK is up to the tax department in UK. But as logic often is very absent in these situations, it might be best to find a tax accountant in WA who has knowledge of UK tax law also. To help others in this situation, once to get to the bottom of your dilemma, can you post an answer on the forum please? Good Luck!!!

[elfie]

Yes tax return will need to be completed innthe uk. But as the total ammount will be under your UK tax allowance no tax will meed paying. You can do this yourself online once a unique tax number is generated for you.

[lozzachino]

Thanks, I just stopped doing UK returns as we sold our house there now so no need to do them anymore...not sure i can be bothered now! And if i get paid into my Australian account it appears I may be liable for a fee as its an international transaction!

[Pommie]

Hi Loz

 

You would need to declare the income on both a UK and an Australian tax return. From a UK perspective, this is clearly under your annual taxable allowance. Australia taxes you on your world wide income, so this will be taxable in Australia. If you did pay tax in the UK, this would be deductible from your Oz tax return (i.e. you only pay tax once, albeit you will pay the highest of the the countries).