UK earnings pe-moving

[Guest Peachie]

Hi all

 

have been having heated "chats" with hubby about our Uk earnings

 

This came about filling in forms for child care benifit and were asked about overseas income if anyone knows the answer please settle our disbute as both are convinced we are right of course being a woman I at least am able to ask for help and not just dig my heels in!!!!

 

a) only disclose Aussie earning as paid PAYE on UK earnings so as not taxable (except any UK interest on bank account) doesn't count

 

b) disclose all earnings (gross) from july the 1st as slill adds to yearly income and if have to declare them at ATO in July may have to pay back some child care benifit that was paid

 

anyone else moved in the middle of a tax year had the same issues (maybe not the friendly chats with other half)

 

regards Deb

[Guest nishman]

We declared UK PAYE earnings for the aussie tax year for child benifit (FTB). We were told by centrelink that as FTB is means tested based on your yearly household income, it needs to be included.

As you've already paid tax on PAYE earnings in the UK, it doesn't affect your tax liability to the ATO for the aussie financial year.

[Guest Peachie]

We declared UK PAYE earnings for the aussie tax year for child benifit (FTB). We were told by centrelink that as FTB is means tested based on your yearly household income, it needs to be included.

As you've already paid tax on PAYE earnings in the UK, it doesn't affect your tax liability to the ATO for the aussie financial year.

 

 

Thanks for the reply

 

if the uk earning is not tax liable at the ato should you still declare it on your tax return or does it just confuse thinks??

 

PS I was right!! hubby should be getting used to being wrong after all these years xx

[Guest nishman]

Not required on the ATO return from memory.

Thinking about it again, they only used the UK earnings to estimate our annual income, and thus determine how much we would get each fortnight to make sure they don't over pay you. After submitting the tax return, centrelink do a "reconcilation" and pay you a lump sump back if they've underestimated how much you should get (or send you a bill if you've been overpaid).

So the bottom line is, if you advise your UK earning to Centrelink, their estimates are likely to be conservative and you should be due a cheque from them rather than a bill after you've done you tax return.

I reckon this means that you were both right

BTW I'm not an expert on this, your accountant would be able to tell you more precisely...