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UK tax when resident in Australia
[Deleted User]
Posts: 3,297 Forumite
in Cutting tax
I'm trying to get my head around the UK tax I will need to pay whilst living and working in Australia for the next few years.
I'll be living and working in Australia so paying Australian income tax on my Australian income. If that is less income tax than I would pay if I had earned that money in the UK do I then need to pay the extra tax in the UK? To make things more complicated I am currently under the Scottish income tax regime.
I'll be living and working in Australia so paying Australian income tax on my Australian income. If that is less income tax than I would pay if I had earned that money in the UK do I then need to pay the extra tax in the UK? To make things more complicated I am currently under the Scottish income tax regime.
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Lover_of_Lycra wrote: »....
I'll be living and working in Australia so paying Australian income tax on my Australian income. If that is less income tax than I would pay if I had earned that money in the UK do I then need to pay the extra tax in the UK? ...
No.Lover_of_Lycra wrote: »....
To make things more complicated I am currently under the Scottish income tax regime.
That does not matter at all.0 -
Lover_of_Lycra wrote: »I'm trying to get my head around the UK tax I will need to pay whilst living and working in Australia for the next few years.
I'll be living and working in Australia so paying Australian income tax on my Australian income. If that is less income tax than I would pay if I had earned that money in the UK do I then need to pay the extra tax in the UK? To make things more complicated I am currently under the Scottish income tax regime.
you read the tax treaty ensuring you cover the articles relating to whatever "source" of income you are talking about
https://www.gov.uk/government/publications/australia-tax-treaties
you comprehend, for example:
- you are resident in A for tax purposes
- employment earnings in A are taxed in A, not in UK0 -
Thanks. I was getting myself confused after reading the below thinking I would I have to pay the difference between UK and Australian income tax but I was misreading the bit about ‘non domiciled’ residents. The Scottish income tax complication came from hitting the (even) higher rate sooner than rUK but since I won’t have to pay income tax in the UK on Australian earnings it’s not an issue.
https://www.gov.uk/tax-foreign-income/non-domiciled-residents
However, since the Scottish income tax regime is more favourable to lower earners than rUK then it will come in handy if I rent my flat out.0
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