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UK and Aus Tax Treaty for Self-Employed Sole Traders

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I am a self-employed performer and a dual citizen of Australia and the UK. I have always lived in Australia but gone back and forth from the UK for work.

 

I worked from October 2019 to March 2020 in the UK for a UK company on contract-based work. They did not take tax out of my pay and I have put money aside ready to pay it.

 

Do I do my tax in Australia and declare my overseas income as foreign income? I earnt far more over there than I will over here in Aus during this financial year (2019-20). What are my allowable expenses over there and how do I claim them here? What about renting over there during my job? I was recruited while I was in the UK, not from here in Aus. How do I go about the exchange rate? How do I claim expenses from the UK if I do my tax in Aus? Do I need to do my tax in the UK because I earnt more there or spent most part of the financial year there?

 

Thanks for your help!

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Taxicorn

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@annabellerose 

 

Assuming that you are considered to be an Australian Resident for tax purposes then:

 

You will lodge a tax return in Australia.

All your UK income will be declared as Foreign income.

The ATO published daily/weekly/monthly exchange rates.

https://www.ato.gov.au/Tax-professionals/TP/Monthly-exchange-rates-for-1-July-2019-to-30-June-2020/

 

Nobody can claim the cost of 'renting' in their tax return so that is a definite no.

 

As regarding expenses, you can claim all your work-related expenses, if you don't know exactly what this is/could be you should speak to a tax professional.

 

 

 

1 REPLY 1
Highlighted

Best answer

Taxicorn

Replies 0

@annabellerose 

 

Assuming that you are considered to be an Australian Resident for tax purposes then:

 

You will lodge a tax return in Australia.

All your UK income will be declared as Foreign income.

The ATO published daily/weekly/monthly exchange rates.

https://www.ato.gov.au/Tax-professionals/TP/Monthly-exchange-rates-for-1-July-2019-to-30-June-2020/

 

Nobody can claim the cost of 'renting' in their tax return so that is a definite no.

 

As regarding expenses, you can claim all your work-related expenses, if you don't know exactly what this is/could be you should speak to a tax professional.