Overseas tax..again

[leftie]

Both of my kids have had 12 months overseas, falling across 2 UK tax years (Usually July-June). They now visit me with their tax problems! Tax office are less than helpful.

My daughter has paid tax in Oz and after much hassle has finally got a statement of her earnings and tax paid for the year which falls across 2004/5 and 2005/6 (she was away August 2004 to July 2005). She worked in the UK April-July 2004 and since she has returned (August 2005-March 2006).

Do they calculate it all as if she was UK resident then deduct what she has paid in OZ, or write off the Oz period if she has paid what she should have done whilst over there does anyone know? By my calculations they pay more taz in OX, so if they lump it al together she may be due a bit of extra tax back , plus they have had her on emergency code.

[leftie]

She is hoping that they wil treat it as all UK income I think because she paid income tax of about 27% in OZ. They have had her on Emergency Tax (I think they now call it basic) since she got back and have been in no rush to put it right because she didn't have a full set of payslips. She now has a letter from her Oz employer detailing what she earned and what she paid in tax (although the Oz tax year is July-June I understand).

I don't think they bother with NI, as she paid their equivilant whilist over there.

We used thge IR CD Rom yestersay and calculated that they are taking £183 a month too much at present and have been since August last year. If the OZ income is counted as UK income because shw wasn't out of the country for a full UK tax year (which seesm to be the consensus) they will owe her a bit more than that.

[leftie]

No, sounds fine. She was busy planning how to spend the rebate when I left her yesterday! Mind you, the tax man had threated to tax her at 40% on what he thought she might have earned in Oz if she couldn't prove in detail that her income in Oz was lower than the UK. Nice. He may now have to eat his words and get his cheque book out.