Residency and split tax confusion!

New to this forum so sorry if this has been asked before but chasing round in circles trying to understand... Just about to start a new job in Australia 4- on a skills shortage temporary visa. Contract is 4 years. I was a teacher in UK until December 2023. I claimed my Teachers Pension this year and it will now be paid monthly going forward. I have always worked in UK. I am trying to understand how the tax works. I have done the Australian online ' test' which makes me an Australian resident for tax purposes but it also makes me a temporary worker because of my visa ( and therefore as I understand it, Australia will not try to tax my UK pension) Having looked at HMRC site though, it also seems to make me a UK resident for tax purposes becuase I spent 183 days+ in UK between April 2023 and now. Can I be a tax resident in both? Aware of the reciprocal tax agreement but no idea how it works- are there forms? I have also read about split tax and looked at the case studies. I would fulfil the critera for case study 1. However, when I read about applying for split tax status it says you have to do this through self assessment. I have never done self assessment as I have always been employed. Do I have to apply? I spoke briefly with a tax advisor in UK before leaving and he just said 'your UK income will be taxed in UK and your Australia income will be taxed in Australia' Is it as simple as that? I have also been told I should submit a P85 to claim an income tax rebate although not sure if that applies to me as I will pay UK tax on my UK pension- I think?? Really not sure whether I should be doing anything or not Appreciative of any advice. Thank you

Hi,

You can be tax resident in both the UK and Australia in the same tax year. As you are considered tax resident in the UK for the whole tax year, you will need to then consider if split year treatment applies to your circumstances. You can see the guidance on split year treatment and apply the rules to your situation here:  

RDR3 Statutory Residence Test

If split year treatment applies, then in order for you to claim it, you will need to complete a SelfAassessment tax return, SA100, and the relevant supplementary pages, including SA109, residence, and form HS304:

Non-residents tax relief under double taxation agreements (Self Assessment helpsheet HS304)

The tax treaty in place with Australia allows the Australian tax authorities to tax your UK teachers pension: 

UK/ Australia Double Taxation Convention

For future tax years, you should download and print off DT individual UK / Autralia form:

Double Taxation: UK-Australia (SI 2003 Number 3199) (Form Australia-Individual 2003)

The completed, signed and dated form, should be sent to the Australian tax office for validation. They will return it to you stamped and signed. You should then send it to HMRC at the address on the form.

Thank you.

Thanks for the reply. Unfortunately the RDR3 only helps determine my residency status and does not guide me on split tax treatment. I know I fulfil the 183+ days test. Also I don't think it's quite right about Australia taxing my UK pension as I am a temporary resident on a temporary visa (but resident for tax purposes too) According to ATO You're a temporary resident, if: you have a temporary visa (YES THAT'S ME) you and your spouse (if you have one) are not Australian residents within the meaning of Social Security Act 1991 (see, Services Australia – residence descriptions External Link). (YES THAT'S ME) This means you only declare: income you derived in Australia any income you earn from employment or services performed overseas while you are a temporary resident of Australia. Other foreign income and capital gains don't have to be declared. I was expecting UK to tax my pension though even though I will be abroad. Is this right? Thank you