Australian working in UK

Australian working in UK

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We have been asked to complete a tax return for an Australian who came to the UK to work for the NHS (PAYE) from November 2012 to the end of April 2013.

He kept his house in Australia and worked for the Australian government up to November 2012 and has returned to the same job. He is domiciled in Australia but left the UK about 20 years ago.

It seems best for him to be taxed under the Remittance Basis.

Is he entitled to the full personal allowance for 2012/13?

Will he be entitled to the full personal allowance for 2013/14?

At the back of my mind I thought the personal allowance would be restricted but I can't find the reference to it anywhere.

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By paras007
18th Jun 2013 11:53

Lots of issues

"It seems best for him to be taxed under the Remittance Basis"

How did you come to that conclusion?

The starting point would be his UK Residency, which it would appear from the brief information you have provided that he would be UK non-resident, in which case the Remittance Basis is irrelevant.

Sorry to be blunt but I would suggest that you refer this client to somebody else who is better able to deal with this as it appears that you are likely to struggle to get this right without a lot of effort/assistance.


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By Stuart Jones
18th Jun 2013 12:41

Not at all paras007 - fair comment.

Will pass on to another firm.


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By frustratedwithhmrc
21st Jun 2013 12:42

Tax residence is unclear...

Was he physically present in the UK for 183 days?

If so he has probably gained UK tax residency (possibly even dual resident), otherwise he would remain AU tax resident.

Regardless, as someone with legal right to work in the UK for a UK employer he should have the full personal allowance.

He'll need to put the UK income on his AU tax return as well, but claim a credit for tax paid under PAYE via the UK/AU Double Tax Treaty.

All things considered, best left to a specialist in UK & AU tax as they can balance both sides of the tax equation, including best use of DTT and extra-statutory concessions (A11 et al)

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