Foreign incomes and different tax years.

[busta]

Australia's tax year runs from 1st July to the 30th June, and obviously the UKs is from 6th April to 5th April.

I am a domiciled UK resident ordinarily living in the UK for the UK 2009-2010 tax year, but spent more than half the UK 2008-2009 tax year in Australia.

I earned money in Australia in the Australian 2008-2009 tax year. Do I need to declare all, part or none of it in the UK 2009-2010 tax year?

If the answer is part, how do I calculate that?

[Eric Mc]

How much of that Australian income was earned in the year from 6 April 2009 to 5 April 2010?

How much Australian tax was deducted/paid on that income?

[busta]

Eric Mc said:

How much of that Australian income was earned in the year from 6 April 2009 to 5 April 2010?

How much Australian tax was deducted/paid on that income?

I don't have exact dates and figures for it but of £9844 earned in Australia about 10% was earned in that period and I paid £586 tax on the whole lot.

[Eric Mc]

Well, you should enter it as UK taxable income but you will be given a tax credit for the Aussie tax already paid.

[busta]

The 10% that falls within the uk tax year or all of it?

[Eric Mc]

You need to break it down into the bits that were earned in the UK tax year for which you are completing the tax return - presumably 2009/10.

[busta]

Ok, I have no record of that so there might have to be some guestimation. Thanks for your help.

[Gareth79]

I had the same problem. Basically you need to file a return for each year you received the earnings and enter in the pay received during that tax year (based on the payslip dates). If you don't have the payslips then try and get them emailed/faxed over, if HMRC query things (unlikely though) they will want to see these.

There is a loooong worksheet on the HMRC site to work out how much you owe, essentially you will be working out how much tax would have been due had it been earned in the UK, then deducting the tax paid there and if you were tax resident in the UK for that year you will have to make up the difference. I can't remember but I don't think you get credit for all the tax paid there either, quite annoying.

Edited by Gareth79 on Saturday 4th December 18:08

[Eric Mc]

busta said:

Ok, I have no record of that so there might have to be some guestimation. Thanks for your help.

Payslips
Wages slips
Bank statements
Paying in book stubbs

All of these might show when the Aussie income was received and banked.

It should be an easy job to go through statements to identify the amounts banked. If you have lost the original documentation, you can always ask for copies from the source (the Australian employer, the bank etc).

It is a legal requirement to maintain original records for data that is to be included on a self assessment tax return.