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bigduckontax, Accountant
Category: Tax
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Hi, Please help! I am currently employed in the UK. My employed

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Hi, Please help!
I am currently employed in the UK. My employed status ceases as of 31st Aug as we are emigrating to Australia. My UK employer has offered me the opportunity to complete some short term desk based project work from Australia during Sept/October '14. I would be paid as a contractor via PAYE net of deductions in GBP to a UK bank account rather than as an employee. Questions:
1. Will the Contractor be able to confirm my tax code via HMRC as being the same in 2014/15 tax year rather than me paying emergency rate between the end of my employed status and the first contact payment?
2. I will have only worked from April to August 2014 as a UK resident - do I wait until the short term work is also complete before submitting a tax return for any 2014/15 rebate due on UK earnings. Should this return include the UK contract earnings after I become a non UK resident for Tax purposes (from Aus arrival date)
3. The Australian tax year is July14-June15 - I assume I therefore submit world-wide income in my Aus return next year including the UK contract work and pay Au$ tax due on foreign and any Australian earnings?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.

Right, let us try to get things into perspective. When you leave the UK for the Antipodes send a form P85 to your tax office. You can do this on line. On receipt HMRC will classify you as non resident for the next tax year and furthermore split the year of departure into two parts, one part resident and one non resident. Any income received in respect of UK work even if received after the departure date is deemed to have been received before that date.

Get the contractor to use your current tax code which he can pick up from your P45 from your last employer.

You cannot complete an UK self assessment return for 14/15 until after 5 April 2015 in any event. By that time all your UK income will be finalised and the tax deducted known. I suspect that you will find when all the chips are down that you may have overpaid income tax anyway and any over deduction will be refunded automatically to your nominated bank account or by means of a Paymaster General's Payable Order. You may be able to negotiate with your UK tax office for any rebate due to be repaid before the end of the 14/15 tax year, but this is merely a concession to which HMRC may not agree.

The tax rates for 14/15 for Australia are not yet available on line, but as a general rule:

0 – $18,200 is taxed at 0%

$18,201 – $37,000 19c for each $1 over $18,200

$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000

$80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000

$180,001 and over $54,547 plus 45c for each $1 over $180,000


The above rates do not include the Medicare levy of 1.5%

Please remember that there is a Double Taxation Treaty between the UK and Australia and any tax levied by the UK would be allowed as a tax credit against Australian tax, so an individual's income is not taxed twice.

I do hope I have shed some light on the process, but please note that it may be a case of 'Hurry up and wait!' Always bear in mind Benjamin Franklin's dictum that in life there are but two certainties, death and taxes!
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3609
Experience: FCCA FCMA CGMA ACIS
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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