I work remotely for a UK employer, how do I report my income and tax paid overseas?

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(Initiate)Initiate

11 Apr 2023

Hi, I moved to Cairns in October 2022 and my UK employer decided to keep me on, so I've been working full time from home here in Cairns.

I can't seem to find definitive advice, since the UK and Australia signed a free trade agreement recently, my circumstance seems to have become a bit of a grey area.

I have been told I just need to submit my P60 to the Australian Tax Office for my self-assessment and the ATO is credited all tax I have paid to the UK Tax Office.

Can you please advise?

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AlliATO

(Community Support)Community Support

13 Apr 2023

Hi @marcusg76

It looks like your UK P60 is equal to what we call an Income statement.

You’ll need to report all income from all sources so we can work out your tax here.

For the income you receive from the UK employer you'll report this in your return at Foreign source income.

You'll need to check if you're eligible to claim an Australian foreign income tax offset, which provides relief from double taxation.

You can read more about Foreign and worldwide income on our website.

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AlliATO

(Community Support)Community Support

13 Apr 2023

Hi @marcusg76

It looks like your UK P60 is equal to what we call an Income statement.

You’ll need to report all income from all sources so we can work out your tax here.

For the income you receive from the UK employer you'll report this in your return at Foreign source income.

You'll need to check if you're eligible to claim an Australian foreign income tax offset, which provides relief from double taxation.

You can read more about Foreign and worldwide income on our website.

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marcusg76

(Initiate)Initiate

13 Apr 2023

Brilliant thank you for the help. So reading the Australian foreign tax offset link, it says I can't claim tax relief If I have claimed a tax refund in the UK...

So, in that case I still fill out the p85 form which declares that I moved to Aus in October, state that I'm still working for my UK employer, but, I don't want to make a claim for taxes paid... does that sound like the right direction to you too?

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JodieR_ATO

(Community Support)Community Support

14 Apr 2023

Hi @marcusg76,

If you've not paid tax on your income overseas, you won't need to apply a foreign income tax offset on your return here. The form you've mentioned is one that needs to be sent to HMRC, so you'd need to check with them if this is the correct form to use. You declare on your return if you're an Australian resident for tax purposes. You can also provide the dates you were a resident for tax purposes if you weren't a resident for the entire FY.

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marcusg76

(Initiate)Initiate

26 Apr 2023

@Jodie_ATO

Sorry Jodie, I've only just seen your reply.

Nothing has changed as far as my tax and National Insurance (UK super and medicare equivalent) is concerned, I've been working as an employee for the UK company, paid by salary from the UK as if I'm still there.

Like I said, it's been a bit of a grey area since I arrived here, I've not been able to get solid advice from accountants in the UK or over here, whether I should carry on as I am or become self-employed and act as an overseas service provider to my UK employer and just sort my own tax, super and medicare here.

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I work remotely for a UK employer, how do I report my income and tax paid overseas?

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