Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Mon, 29 May 2023 13:30:00 GMT by
Hi I intend to move to the UK (on a Youth Mobility Visa) and continue working remotely for my Australian company in my current job for a period of approximately 10 moths. I have considered the residency tests and I will be 'tax resident' in both Australia and the UK. Ideally, my employer would continue to pay me into my Australian bank account and deduct income tax in accordance the Australian PAYG/PAYE system. I would be grateful if you could confirm that: - my employer will not have to set-up a UK payroll system and deduct UK tax (i.e. deductions can continue to be made in Australia) - I will be required to complete a Self-Assessment and pay UK tax on my income (can you clarify whether this is 'foreign income') - I will be entitled to a foreign tax credit for tax deducted and paid in Australia (even though I will not have completed my Australian tax return yet) in accordance with the double tax treaty. Lastly, is there any way in which I can get formal and binding advice from HMRC in advance (similar to the 'private ruling' system in Australia)? Many thanks in advance
Posted Thu, 01 Jun 2023 08:59:21 GMT by HMRC Admin 25
Hi John Smith,
Your employer will not need to set up a UK payrol system and you will declare the income on a tax return.
If tax has been paid in Australia you can claim relief for the tax paid.
Further guidance is here:
Tax on foreign income
Thank you. 
 

You must be signed in to post in this forum.