Worked in AU, can I claim tax back?

Smithy

Smithy

Smithy

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Hi, my knowledge on this area is weak and the internet seems to be filled with contradictory statements regarding my circumstances.

I was in Australia from Jan 6th to June 15th this year. I worked for several weeks during my stay (worked during the months of March and April). I earned $4420.55 gross and was taxed $516.

I believe I'm entitled to a tax refund but I'm not sure who I should be chasing. Is this something I should be chasing up with ATO, or Inland Revenue?

I was led to believe that I wasn't entitled to a refund because I was not in the country for more than 6 months during the Australian tax year, but I no longer believe this is the case.

Any help appreciated. :)
 
Yes you can but you have to put down your a resident fortax purposes that is the crucial part! Although might not be worth hassle or that amount got back about 3000gbp plus super annuation.

Company I used fairly respectable and you can do it all online I believe http://www.taxbackaustralia.com.au/
 
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Hrm how does this work if you're working in Australia but you're still paid by your firm in the UK? I presume there's no loophole for this.
 
You have to complete a self-assessment tax return in the UK (where you remained resident). You claim under the double tax treaty and the tax rate Australia uses compared to the UK decides the return you get.

PianoBasher: It depends on your resident status.
 
divaboy said:
Yes you can but you have to put down your a resident fortax purposes that is the crucial part! Although might not be worth hassle or that amount got back about 3000gbp plus super annuation.

Company I used fairly respectable and you can do it all online I believe http://www.taxbackaustralia.com.au/
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It's over £300. How can it possibly not be worth it? :eek:

Thanks by the way. :)
 
Kemik said:
You have to complete a self-assessment tax return in the UK (where you remained resident). You claim under the double tax treaty and the tax rate Australia uses compared to the UK decides the return you get.

PianoBasher: It depends on your resident status.
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What happens if I am already completing a self-assessment tax return for the previous tax year? Does the form allow me to enter both incomes?
 
Smithy said:
What happens if I am already completing a self-assessment tax return for the previous tax year? Does the form allow me to enter both incomes?
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Not sure I understand your question. When did you go to Oz and what tax year are you currently completing a tax return for?

Edit: Re-read the opening post. Yes, you'd need to split it between the UK tax years and do a tax return for each year. They should refund the 10/11 tax year shortly after you submit the return. You'll obviously need to wait until April 2012 before you can complete the 11/12 tax return.
 
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Kemik said:
Not sure I understand your question. When did you go to Oz and what tax year are you currently completing a tax return for?

Edit: Re-read the opening post. Yes, you'd need to split it between the UK tax years and do a tax return for each year. They should refund the 10/11 tax year shortly after you submit the return. You'll obviously need to wait until April 2012 before you can complete the 11/12 tax return.
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Yes, this makes sense. But for the tax year 10/11, I will have earned income from self-employment while I was in the UK (before I went to Oz). How does the self-assessment form distinguish between income earned while in the UK and income earned in Oz? Are there separate sections? (This is the first time I will have completed a self-assessment form)
 
Smithy said:
Yes, this makes sense. But for the tax year 10/11, I will have earned income from self-employment while I was in the UK (before I went to Oz). How does the self-assessment form distinguish between income earned while in the UK and income earned in Oz? Are there separate sections? (This is the first time I will have completed a self-assessment form)
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It doesn't. You record your worldwide income. Then tell it the amount of income in £ (at the relevant average exchange rate) that has been taxed in Oz, followed by the amount of tax you paid. The form should do the rest for you.
 
I just completed my SA online. There was a section as you described where I entered the tax I paid on my earning overseas. The form used accounting jargon which at every step I didn't understand and so I'm unsure as to whether or not the tax is going to be refunded to me. I assume that as I have entered the amounts then the "system" will automatically recognise that I should be refunded. At no stage did I actually request the refund or feel like the system had recognised that.

I feel like I should be able to have faith in the system, but there's a stronger urge to actually contact HMRC about it.
 
Smithy said:
I just completed my SA online. There was a section as you described where I entered the tax I paid on my earning overseas. The form used accounting jargon which at every step I didn't understand and so I'm unsure as to whether or not the tax is going to be refunded to me. I assume that as I have entered the amounts then the "system" will automatically recognise that I should be refunded. At no stage did I actually request the refund or feel like the system had recognised that.

I feel like I should be able to have faith in the system, but there's a stronger urge to actually contact HMRC about it.
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So you completed your tax return for the 2010/11 tax year? What did the final calculation say after you entered all your income and all your tax paid?
 
Uk goverment wanted me to pay tax on my earning in Australia which I already paid tax on :rolleyes:

Good excuse to extend my travelling so I was out of the UK for the full tax year ;):p
 
Kemik said:
So you completed your tax return for the 2010/11 tax year? What did the final calculation say after you entered all your income and all your tax paid?
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The final calculation is correct for the amount of tax that I owe, but it says nothing about tax repayment.
 
Smithy said:
I didn't calculate anything, the online system did it for me.
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Then how do you know the final tax calculation of you owe is correct?

It's really difficult to know if something isn't right unless I had figures but of course you wouldn't wanna do that on a public forum.

It should provide you with a calculation of your tax liability and then a deduction for PAYE and foreign tax credit.
 
Kemik said:
That's what double tax treaties are for.
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I'm no tax expert but it was a good excuse to travel some more. For the record claimed near enough the full whack back from Australia and my super contributions which is often over looked.

Tax system over in Oz is such a beautiful thing can claim for basically anything sun glasses ,washing of uniforms ,computer equipment just to name a few:D
 
divaboy said:
I'm no tax expert but it was a good excuse to travel some more. For the record claimed near enough the full whack back from Australia and my super contributions which is often over looked.

Tax system over in Oz is such a beautiful thing can claim for basically anything sun glasses ,washing of uniforms ,computer equipment just to name a few:D
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If you thought the UK system was complicated... :p
 
Kemik said:
Then how do you know the final tax calculation of you owe is correct?

It's really difficult to know if something isn't right unless I had figures but of course you wouldn't wanna do that on a public forum.

It should provide you with a calculation of your tax liability and then a deduction for PAYE and foreign tax credit.
Click to expand...

No, it just gives me a Total tax and Class 4 NIC due for 2010-11. That total is correct for my UK earned income.

There is no mention of any tax underpaid or overpaid for my earnings overseas.
 
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